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HF Markets (Hot Forex)

HF Markets (Hot Forex) Review
Trader's rating 4
Editor's rating 4.2

Trading Accounts

 

Account type Minimum deposit  Minimum trade size Maximum leverage  Average Spreads 
Micro  $50 0.01 1:1000  1.2 pip on EUR/USD
Premium $500 0.01 1:400 1.2 on EUR/USD
Fixed $500 0.01 1:400 1.8 pip on EUR/USD
Zero $100  0.01 1:200  0.1 pips on EUR/USD + commission $4 per lot traded (per side)
Currenex $500 0.01 1:400 0.2 pips on EUR/USD + commission $5.00 per lot traded (per side)
VIP $20,000  0.01 1:300 0.2 pips on EUR/USD + commission $6.00 per lot traded round turn

 

In order to suit the needs of traders of all preferences and levels of experience, HotForex offers its clients a variety of account types to choose from. You may choose from fixed and floating spreads, commission-free trading (in Micro, Premium and Fixed accounts) or tighter spreads, involving commission fees. Beginners can sign up for Micro accounts with as little as $5, and micro lots are available for trade on all accounts.


Apart from the above mentioned account types, HotForex offers 2 more copy trading ones: an Auto Account, enabling traders to subscribe to free and paid Trading Signals from the MQL5 Community, (built-in to the MT4 trading terminal); and HF Social, which provides trading powered by FxStat.


What is more, swap-free (Islamic) accounts are available with minimum initial deposit $150, designated for clients who are not willing to earn interest for religious reasons.


The Company. Security of Funds

 

Company Country Regulation
HF Markets (Europe) Ltd Cyprus CySEC
HF Markets (UK) Ltd UK FCA
HF Markets SA (DIFC) Ltd UAE DFSA

 

HotForex is a retail forex broker, offering attractive conditions for trading in a wide range of instruments, including Forex, Spot Metals and CFDs on commodities, indices and popular shares such as Google, Apple and Facebook.

 

HotForex is a brand name of a group of companies, operating in different jurisdictions. The most reliable is HF Markets (Europe) Ltd., a Cypriot Investment Firm (CIF), registered in the European Union and licensed by Cyprus Securities and Exchange Commission (CySEC).

 

The broker also holds licenses from UK's Financial Conduct Authority (FCA), the South African regulator, as well as from the Dubai Financial Services Authority (DFSA). The HF Markets group also includes operates two offshore units (HF Markets Ltd., registered in Mauritius, and HF Markets (SV) Ltd., incorporated in St. Vincent & the Grenadines). 


Cyprus is currently one of the most attractive forex broker destinations and probably the main reason for this is its well-balanced regulation. Tough regulation with high entry capital requirements and low maximum leverage has reduced competition in the United States and Japan, while light touch regulation affects credibility and safety.


CySEC applies certain rules and requirements to Cyprus Investment Firms, which are not as stringent as those in the US, for instance, however they provide a certain level of credibility. Cypriot Investment Firms must hold at least €1,000,000 in order to prove their good financial standing. Besides, they are required to keep customer funds in segregated accounts, separated from the company’s operating funds.


As a further guarantee to clients’ funds, all CySEC-regulated companies are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, If the company is in default.


Additionally, every CySEC- regulated investment company is also MiFID compliant and therefore entitled to offer cross-border services within the EU under the MiFID Passporting Regime. This also means that they have to meet all requirements for financial servoces provider set on a EU level, such as to provide negative balance protection to their clients, not to offer trading incentives which expose their clients to additional risk, and more.


Trading Conditions


Minimum Initial Deposit

In order to open an account with HotForex, traders have to invest a minimum of $5. Such minimum initial amount is comparatively low, however, many Cyprus-based brokers require even less. For instance, FXTM and XM demand just $5 from their clients as a start.


Spreads & Commissions
This broker offers both floating and fixed spreads. Fixed ones are comparatively low, amounting to 1.8 pips on EUR/USD. In comparison, Easy-forex offers fixed spreads amounting to 1.8 pips on VIP accounts only.


As regards floating spreads with HotForex, typical ones on commission-free accounts amount to 1.2 pips on EUR/USD, which is average. According to us, the conditions on the Zero account are the most attractive ones: spreads averaged 0.1 pips on EUR/USD and commission $4 per 1.00 lot traded (per side), so basically trading costs amount to around 0.9 pips, commission included. And you can open a Zero account with just $100.


For purposes of comparison, average variable spreads on Exness’ commission-free accounts amount to 0.9 pips on EUR/USD, while ECN account holders are offered average spreads of 0.4 pips on EUR/USD with $5 commission per standard lot.


Leverage
The maximum leverage with HotForex is high, reaching 1:1000. Some jurisdictions cap leverage ratios at considerably lower levels (1:50 in the USA, 1:100 in Poland).


The reason for such leverage limitations is that the higher leverage, the higher the risk of losses, which may even exceed initial investments. However, many Cyprus-based brokers offer leverage levels, similar to the ones provided by HotForex (XM – up to 1:888), or even higher – Exness offers leverage up to 1:2000. More FX brokers offering leverage equal to or exceeding 1:500 may be vewed here.


Trading Platforms


This broker supports both MetaQuotes' plaforms: the standard  MetaTrader4 (MT4) and the latest MetaTrader 5.

 

MT4 is an internationally acclaimed trading terminal, offering a full spectrum of trading tools and resources: built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them. Traders can download ready-made or create their own EAs and let the program do all the work, no human emotions involved.


MetaTrader 4 is available to clients of HotForex as desktop, web and mobile versions. More brokers using the MT4 can be viewed here


What is more, HotForex provides MT4 MultiTerminal, which offers a practical and convenient way to manage multiple accounts simultaneously from a single interface.

 

The MT5, on the other hand, was intended as a multi-asset trading platform. In addition to forex, it facilitates trading in exchange-traded stocks. The platform is generally an enhanced version of the MT4, keeping most of the functionalities of its predecessor - the great charting, Expert Advisors, and more.


Besides, free VPS hosting is offered to both new and existing customers who deposit a minimum of $5,000 and maintain this amount for the subsequent months. VPS hosting allows the execution of orders 24 hours, 5 days a week.

 

In addition, HotForex has developed a copy trading service of its own. It is called HFCopy and enables the broker's clients to follow other traders and copy their deals.


Promotions
By the time of writing this review, HotForex runs the following promotions:


- 100% SuperCharged Bonus – applies to each deposit of $250 by FIX, Premium, Currenex and Islamic account holders up to $50,000;
- 30% Rescue Bonus - to a maximum of $7,000 which cannot be withdrawn under any circumstances;
- 100% Credit Bonus - applies on new deposits or internal transfers to trading accounts of at least $100 (available on Micro, Premium, Islamic, FIX and Currenex account types), which can be withdrawn as soon as trading volume requirements are met.
- Performance based competitions: demo contest with $3500 pool prize;
- Other ongoing promotions: HTA award and a $1000 cash prize as a showcase to the superb skills that lead to an excellent performance.


Methods of Payment


HotForex supports a wide range of payment methods: credit/debit cards (Visa, Visa Electron, MasterCard, Maestro, American Express), bank wire transfer and e-wallet payment systems Skrill, Neteller, WebMoney, TrustPay, iDeal, Sofort, Western Union, Przelewy24.


Conclusion


HotForex is a EU award-winning broker that offers wide range of trading products and account types under competitive conditions. To sum up the above, here are the advantages and drawbacks with regards to this broker:

 

Pros  Cons
Solid regulation (FCA, CySEC, DFSA)  No choice of trading platforms
Low competitive spreads  
MT4 available, HFCopy  
Attractive Bonuses & Promotions  

 

Headquarters:
HF Markets Europe Ltd

Spirou Kyprianou 50, Irida 3 Tower, 10th Floor, Larnaca 6057
 
 
Country: Cyprus
 
Regulated by: CySec
 
Promotions:
100% SuperCharged Bonus  
100% Credit Bonus
30%   Rescue Bonus  
 

Dealing:
Straight Through Processing (STP

Spread:
Variable, from 1 pip  (no commision)
Variable, from 0.02 pips  ($6 or $10 commision)

Deposit/Withdraw
Bank Wire, Credit card,  Skrill (MoneyBookers), WebMoney, Neteller, Perfect Money, CashU

Platform:
Metatrader, Currenex, Web Trader, iPhone Trader, druidTrader, PAMM, FIX/API

Extra Services:
Technical anaysis from TradingCentral.com
MYFX platform for deposits over $2000

Forex.com

Forex.com Review
Trader's rating 2.9
Editor's rating 4

Trading Accounts

 

Account type Minimum deposit  Minimum trade size  Maximum leverage* Average Spreads
Standard $50  0.01 1:200  1.8 pips 
AciveTrader/Premium  $20 000/$10 000   0.01 1:200 1.3 pips **/1.5 pips
*Leverage in the US is limited to 1:50.
** Spreads can be as low as 0.7, based on the clients’ trading
volume.

 

FOREX.COM currently offers two account types: Standard, and Active Trader.  The ActiveTrader account was launched in November, 2016 in Canada and US and soon it will also be rolled out to the rest of the markets where the broker operates. 

 

An alternative to the ActiveTrader, Premium account (currently available in UK, Australia, etc.) is available with $10 000 and offers spreads averaged 1.5 pips. It also offers 2% interest on your account balance, up to $50,000.

 

The Active Trader account is accessible only via the broker’s proprietary FOREXTrader platform and will not be offered to traders using the MetaTrader 4 (MT4) or any Managed Accounts and accounts referred by an introducing broker (IB).

 

In addition, FOREX.COM offers swap-free accounts to investors of Islamic belief.

 

Trading Conditions

 

Minimum initial deposit

In order to open an account with FOREX.COM, one has to invest just $50, which is a low minimum initial deposit. In comparison, FXCM also demands $50 from its clients as a start.

 

Spreads & Commission

One of the main advantages of major broker FOREX.COM is that it offers commission-free trading. Of course, this means that the company gets remuneration for its services by a mark-up. That is why FOREX.COM’ variable spreads are not among the tightest in the industry – average ones amount to 1.8 pips on EUR/USD pair. Nonetheless, you get access to a selection of trading platforms with fast execution (average execution speed is 0.05 seconds), and most importantly, your funds are safe.

 

In addition, ActiveTrader account holders may benefit from an average 15% reduction on our standard spreads. Spreads on this account type can be as low as 0.7 pips on EUR/USD, plus, their holders get personalized support, priority service and no account fees on the FOREXTrader Platform.

 

In comparison, FXCM offers variable spreads, averaged 1.5 pips on commission-free accounts. For further information, you may check out and compare real-time spreads of 15 leading brokers here

 

Maximum leverage

The maximum leverage levels offered by FOREX.COM is up to 1:200, which is considered average. Of course, the maximum leverage provided to US clients is 1:50.

 

If you need higher leverage ratios, many FX brokers provide such. FXCM offers leverage up to 1:400 and you may also check out a list of brokerages providing leverage up to 1:500 or higher here. You should keep in mind, however, that higher leverage involves greater risk of losses.

 

The Company. Security of funds

 

Set up in 1999, Gain Capital now has a global reach. Being one of the largest brokers in the US, it is therefore in direct competition with FXCM for the domination of the US market. It is It offers trading in currency pairs, index & commodities CFDs, precious metals, as well as exchange-traded futures and options (US clients).

 

First of all, GAIN Capital Group, LLC is a registered futures commission merchant and retail foreign exchange dealer with the US Commodity Futures Trading Commission (CFTC) and is also a member of the National Futures Association (NFA).

 

Brokers that are registered with the NFA are obliged to comply with a stringent set of rules. US regulation is one of the strictest, which is a good thing in terms of investor protection, however some of the rules imposed are considered too restrictive.

 

For instance, NFA-registered brokers are required to maintain a net capital of at least $20 million to guarantee customers’ positions, which is the highest minimum capital requirement worldwide.

 

Besides, hedging is not allowed and leverage is limited to 1:50, while European brokers are free to provide leverages up to 1:1000 or even higher than that.

 

The parent company, GAIN Capital Holdings, Inc. (NYSE:GCAP), is a New Jersey-based forex and CFD broker. As a global publicly traded company, regulated in 7 jurisdictions, Gain Capital meets high standards of corporate governance, financial reporting and disclosure. Generally speaking, if you choose to invest in forex.com, you may trade without worries about your funds’ safety.

 

Company

Country

Regulation

GAIN Capital Group, LLC

US

NFA, CFTC

Forex.com UK Limited

UK

FCA

GAIN Capital FOREX.com Australia Pty Limited 

Australia

ASIC

Forex.com Canada Limited

Canada

ILLROC

GAIN Capital Group (Hong Kong) Limited 

Hong Kong

SFC

GAIN Capital Japan Ltd. 

Japan

FFAJ

 

Trading platforms

 

Forex.com offers its clients two basic trading platforms: its in-house FOREXTrader & and the popular MetaTrader 4. In addition, the brokerage also supports Tradable and its special ECN platform, GTX.

 

The fully-customizable FOREXTrader is equipped with advanced trading features, professional charting tools and integrated research and analysis. It comes in as web, PC varsions and full array of mobile apps (including iOS and Android devices). FOREXTrader PRO’s professional-grade trading tools include real-time charting, pattern recognition software by Autochartist, and custom-built automated trading software, called Strategy Center.

 

Among the FOREXTrader’s features is the Strategy Center with automated buy and sell signals, which allows traders to access 15 user customizable pre-defined trading strategies as well as build their own via the Strategy Wizard. The Strategy Center includes the ability to back test strategies against historical data and then activate them to generate buy and sell signals in real time.

 

Forex.com's inhouse FOREXTrader platform. Click to enlarge.

 

The comprehensive research and analysis includes round-the-clock updates from our expert in-house research team, real-time concise headlines from Reuters News, and professional technical analysis from industry-leading Trading Central.

 

With this platform, users are able to choose between instant and market execution (through the Execution Mode drop-down). Unfortunately, FOREXTrader does not allow hedging, as open positions are closed in compliance with the (First in First Out) FIFO accounting rule, applicable in the US.

 

Some of the new functionalities of the platform after a recent update include powerful charts with integrated one-click trading, smart trade ticket with advanced risk management option, pre-defined and customizable layouts, and more.

 

The most common forex trading platform - MetaTrader4 - is also supported by Forex.com. It offers competitive pricing on over 45 currencies, superior market execution and EA optimized environment. Furthermore, Forex.com’s MT4 is equipped with some unique trader tools & resources, such as live commentary from the company’s Global Research Team, real time technical analysis from Trading Central and actionable ideas from Autochartist. According to us, MT4, offered by forex.com has one significant disadvantage - it does Not offer a 3rd party bridge.

 

GAIN Capital’s GTX is an independent and innovative ECN designed for institutions and professional traders. It offers robust algorithmic trading capabilities that enable clients to develop and implement a wide range of trading strategies using GTX’s Java or FIX-based APIs.

 

Payment methods

 

Clients of Forex.com may use bank wire transfer, as well as debit/credit cards as payment methods.

US clients may also make deposits and withdrawals via Check and eCheck (U.S. bank accounts only), while EU clients can use Sofortbanking (online funds transfer available in the UK, Germany, Switzerland, The Netherlands and Belgium only).

 

Conclusion

 

Although its spreads are not among the tightest on the forex market, we highly recommend Forex.com, for it has earned its reputation of a reliable broker with strong regulation and transparent policy. It offers reasonable conditions for trading in forex, CFDs and stocks on a wide range of platforms. Here are, in a nutshell, the advantages and disadvantages with regards to Forex.com, the retail forex brand of Gain Capital:

 

Pros       Cons
Well-regulated & reputable broker Mediocre spreads
Commission-free trading  
Choice of trading platforms, MT4 available  
Fast execution speed  

                                                                                  

Company Name: FOREX.com

Website Address: www.forex.com

Headquarters: Bedminster One, 135 US Highway 202/206, Suite 11, Bedminster, NJ 07921.

Country: United States

Regulated by: NFA (USA), CFTC (USA), FCA (UK), FSA (Japan), ASIC (Australia), IIROC (Canada)

 

Languages: English, Chinese Traditional and Simplified, Arabic, Russian, German, and Japanese 

Phone: +1 908-731-0750

Fax: +1-908-731-0701

E-mail: [email protected]

Free Phone: Toll Free: 877-367-3946 (US & Canada)

Year of company's foundation: 1999 

Year of company's forex division foundation: 1999

Client base: Individuals (IBs, Money Managers, White Label partners, please visit www.gaincapital.com).

Services: Forex and Metals (UK and AU only). Trading 24 hours a day from Sunday 5pm ET – Friday 5:00pm ET. Commission Free trading (bid/ask spreads apply). Web-based trading platform requires no download or installation. No debit balance guarantee. Free access to charting, news and research. 24 hour customer support via phone, email and chat during trading hours. Mobile trading available. 24 Hour trading.

Languages: English, Chinese simplified and traditional, Arabic, Russian, Japanese

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