HFM ( HF Makets) Review

HFM Broker Review: A Comprehensive Look

HFM, owned by HF Markets Group, stands out as a versatile broker catering to various trading needs. With an extensive range of account types and a vast selection of trading assets, HFM ensures that every trader finds the right fit for their strategies. The platform's high-quality software and favorable trading conditions make it a top choice for many in the trading community.

What is HFM?

HFM, formerly known as HotForex, is a renowned multi-asset broker offering an array of trading options including Forex, Metals, Energies, Indices, Stocks, Bonds, ETFs, Cryptocurrencies, and Commodities. With a leverage of up to 1:2000, HFM provides ultra-fast execution, quick deposits and withdrawals, and swap-free accounts, catering to the diverse needs of traders worldwide.

Account Types and Trading Conditions

HFM presents five distinct account types: Cent, Zero, Pro, Premium, and Top-up Bonus. These accounts feature tight spreads, with the EUR/USD spread averaging at 0.1 pips. The broker operates with unrestricted liquidity, allowing traders of any size or profile to choose between various spreads and liquidity providers. This flexibility supports all trading strategies, including news trading, through automated trading platforms.

Establishment and Global Presence

Founded in 2010, HFM is headquartered in Cyprus and maintains a significant presence through its global offices in Dubai, South Africa, and offshore entities in St Vincent and the Grenadines. The broker has a strong foothold in Africa, particularly in Ghana, as well as in the Asian and MENA regions, offering substantial opportunities to traders across these markets.

Regulatory Compliance and Trust

HFM operates under the licenses and regulations applicable to each region it serves, ensuring compliance with the standards of the Forex industry. This regulatory oversight underscores the broker's commitment to providing trustworthy and reliable trading services.

Awards and Recognition

HFM not only presents an attractive trading proposal but also boasts a solid reputation confirmed by official figures and numerous industry awards. Over the years, HFM has demonstrated remarkable growth and development, transitioning from primarily operating in Europe to becoming a truly global broker with extensive regional coverage.

Industry Recognition

HFM has been honored with numerous awards, reflecting its commitment to excellence and reliability in the trading industry. These accolades serve as a testament to the broker's dedication to providing high-quality services and fostering trust among its clients.

Global Expansion

Initially focused on the European market, HFM has significantly expanded its reach, establishing a strong presence across various regions including Africa, Asia, and the MENA region. This global expansion underscores HFM's capability to cater to a diverse clientele, offering tailored trading solutions that meet the unique needs of traders worldwide.

Is HFM a Scam or a Safe Broker?

No, HFM is not a scam. We consider HFM a safe broker as it is licensed and regulated by several top authorities, including the FCA (Financial Conduct Authority), FSCA (Financial Sector Conduct Authority), and CySEC (Cyprus Securities and Exchange Commission). These regulatory bodies ensure that HFM adheres to strict standards, providing a secure and trustworthy trading environment for its clients.

Where is HFM Located?

HFM is a globally regulated broker with authorization from several top-tier financial authorities, including CySEC (Cyprus Securities and Exchange Commission), the Financial Conduct Authority (FCA) in the UK, the FSCA (Financial Sector Conduct Authority) in South Africa, and the CMA (Capital Markets Authority) in Kenya.

Additionally, HFM has entities registered in offshore zones such as Mauritius, St Vincent and the Grenadines (SVG), and Seychelles. While it is generally recommended to avoid trading with offshore brokers due to the lack of stringent Forex trading regulations, HFM's adherence to multiple regulatory standards across different jurisdictions ensures a safe and reliable trading environment for its clients.

How Are You Protected?

HFM prioritizes the protection of client funds, a crucial aspect of a regulated broker. HF Markets (Europe) Ltd. is a member of the Cyprus Investor Compensation Fund, which ensures that covered clients have claims against investment firms, safeguarding their deposits under regulatory requirements.

In addition to regulatory protections, HFM offers an extra layer of security through a Civil Liability insurance program with a limit of €5,000,000. This insurance covers errors, omissions, negligence, fraud, and various other risks that could lead to financial loss. This comprehensive protection enhances the safety of trading with HFM and adds credibility to our review.

It is important to note that conditions and protections may vary between different HFM entities, in accordance with applicable laws and regulations. For detailed information, refer to the specific licenses held by HFM entities.

Leverage

When trading with HFM Forex, traders can access both fixed and floating leverage options, which are particularly beneficial for those with smaller accounts. Leverage allows traders to potentially increase their gains by multiplying their balance by a certain factor. However, it’s crucial to remember that leverage can also amplify losses, making it essential to use this tool wisely and understand the associated risks.

HFM provides various leverage levels, ranging from the more conservative 1:30 for Forex instruments, as regulated by European authorities, to very high ratios of up to 1:2000 available through their international branches. While high leverage can offer significant profit potential, it also increases the risk of rapid losses, especially for retail trading accounts.

Leverage levels are primarily determined by regulatory requirements in your region and your level of financial proficiency. It’s important to verify with the HFM customer support team which leverage levels you are eligible for, based on your location and trading experience. Always ensure you fully understand the implications of using high leverage in your trading strategy

HFM Account Types

HFM offers a diverse array of account options tailored to meet various trading needs. The broker provides five main account types: Cent, Zero, Pro, Premium, and Top-up Bonus, as well as Copy Trading and PAMM accounts. Additionally, HFM offers Swap-Free Trading and Islamic Accounts, specifically designed for traders from the MENA region and beyond.

New traders can start with a Demo Account to familiarize themselves with the platform and then transition to a Live Account by making a deposit. Each account type offers flexibility, catering to different trading strategies and experience levels. Whether you are a beginner, an investor, or a professional trader, HFM has an account type that suits your specific requirements.

How to Open a HotForex Demo Account

Opening a HotForex Demo Account is a straightforward process that requires no verification at this initial stage. You can set up a demo account in just a few minutes. Follow these simple steps to get started with a risk-free account on the HFM website and gain access to the HFM MT4 or MT5 platforms with unlimited demo funds:

Steps to Open a Demo Account

1. Visit the HFM Demo Account Sign-In Page:Go to the HFM website and navigate to the Demo Account sign-in page.
2. Enter Personal Information:
   • If you are a new client, enter your personal details such as your First and Last Name, Country of residence, email, phone number, etc.
   • If you are an existing client, simply sign in using your credentials.
3. Complete Registration: Fill in all the required information to register for myHF.
4. Immediate Access: Your account will be approved almost immediately. Through your client area, you can access your new Demo Account. Once you're ready, you can also submit a request for a Live Account to start managing real funds.

How to Open an HFM Live Account

When you're ready to start live trading, follow these steps to open a Live Account:

1. Submit Application:Go to the HFM website and log in to your account.
2. Provide Verification Documents:You will need to submit documents for identity verification, proof of residency, and other required proofs.
3. Access myHFM Client Area:Once your documents are verified, you will gain access to the myHFM client area, where you can manage all your accounts and finances.

With both Demo and Live accounts, HFM provides a seamless process to start trading and managing your investments efficiently.

What Instruments Can I Trade on HFM?

One of HFM's major advantages is its extensive range of market offerings. Traders have access to over 500 trading products and 17 different trading tools, all available on a CFD basis. Here's a breakdown of the instruments you can trade on HFM:

1. Indices: Trade global indices and gain exposure to the world's major stock markets.
2. Metals: Invest in precious metals such as gold and silver.
3. Energies: Trade energy commodities like oil and natural gas.
4. Shares: Access a wide range of shares from leading companies worldwide.
5. Commodities: Diversify your portfolio with agricultural and other commodities.
6. Bonds: Trade bonds and fixed-income securities.
7. ETFs: Invest in Exchange-Traded Funds for diversified exposure.
8. DMA Stocks: Direct Market Access to stocks for more precise trading.
9. Cryptocurrencies: Trade popular cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, and more.

HFM provides a comprehensive selection of instruments, allowing traders to capitalize on various market opportunities and diversify their investment strategies effectively.

HFM Fees

HFM is known for its competitive trading costs, offering tight spreads that are among the most attractive in the industry. Based on our research, HFM provides spreads starting from 0 pips on certain account types, making it a cost-effective choice for traders.

Trading Fees

HFM's primary trading costs are reflected in its tight spreads. Depending on the account type and market conditions, traders can benefit from minimal spread charges, enhancing their profitability.

Non-Trading Fees

While HFM's trading fees are highly competitive, it's also important to consider additional non-trading fees that might apply. These can include:

• Deposit Fees: Some methods may incur charges.
• Withdrawal Fees: Fees may vary depending on the withdrawal method.
• Inactivity Fees: Charges that may apply if the account remains inactive for a certain period.

Summary of Fees

For a comprehensive understanding of HFM's fee structure, it's essential to review both trading and non-trading fees to get a clear picture of the total trading costs. Below is an overview of the fees:

By offering competitive spreads and transparent fee structures, HFM ensures that traders can maximize their trading efficiency while being fully aware of the costs involved.

Spreads

HFM operates with a transparent fee structure where the primary charge is the variable spread, the difference between the bid and ask price. HFM does not offer fixed spreads (for a list of brokers offering fixed spreads, click here). The broker does not impose additional fees or commissions, making the cost calculation straightforward and simple for traders of all levels. Here’s a breakdown of our findings on HFM spreads:

Spread Details

1. Micro Account: Spreads start from 1 pip, suitable for beginner traders or those with smaller accounts.
2. Zero Account: Offers spreads starting from 0 pips, with an average of 0.2 pips. This account type typically has higher margin requirements.

Cost Considerations

The trading costs at HFM vary based on the account type and margin requirements. For accounts offering 0 spreads, the margin requirements may nearly double, affecting the overall cost of trading. It’s crucial to review the specific conditions of each account type in detail before making a decision.

By providing variable spreads without additional commissions, HFM ensures that traders can easily manage their trading costs, regardless of their experience level.

Overnight Fee

When trading with HFM, it's important to account for overnight or rollover fees if you hold a position open for longer than a day. These fees vary by instrument and can be viewed directly on the trading platform or at the time of opening a trade. For example, the overnight fees for Cryptocurrencies are displayed as follows:

However, if you are using swap-free accounts designed for traders following Sharia law, these accounts are exempt from interest rates or swaps, making them compliant with Islamic finance principles. Always verify the specific conditions related to overnight fees for each instrument you trade to accurately manage your trading costs.

Deposits and Withdrawals

HFM supports multiple methods for funding trading accounts, ensuring convenience and security for its users. One of the standout features is the HFM MasterCard, which facilitates straightforward transactions and enables safe online payments. Here are some of the options available for deposits and withdrawals:

1. Bank Transfers: Traditional and secure method for transferring funds.
2. Credit/Debit Cards: Including Visa and MasterCard for quick and easy transactions.
3. E-Wallets: Options like Skrill and Neteller for fast and flexible payments.
4. HFM MasterCard: Exclusive card for direct transactions and secure online payments.

These varied options provide flexibility and ease for traders to manage their funds efficiently. Always check for any associated fees or processing times for each method to ensure smooth financial transactions.

Deposit Methods

One of the standout features of HFM is the wide range of over 14 deposit and withdrawal methods available. The broker continually expands its options, including new offerings like Crypto Deposits and increasing accessibility to local transfers and regional payment methods. Here are some of the methods you can use:

• Major Credit and Debit Cards: Convenient and widely accepted.
• Wire Transfers: Secure and traditional method, including domestic transfers in some regions.
• E-Wallets: A vast array of options, including Cryptocurrency Deposits, Fasapay, WebMoney, and more.

How to Deposit Money on HFM

To deposit money on HFM, follow these steps:

1. Select a Payment Provider: Choose the payment method that suits you best and is available in your region.
2. Proceed with Payment: Follow the instructions to complete the transaction. HFM ensures quick processing of your deposit.

HFM processes withdrawals within a short timeframe and provides support for transactions 24/5.

Minimum Deposit for HFM

The minimum deposit for HFM starts from $0. However, it’s important to check the specific minimum deposit requirements based on the account type and the chosen payment method. Always verify the details to ensure you meet the necessary criteria for your initial deposit.

HFM Withdrawal Review

HFM offers multiple withdrawal options, including credit/debit cards, bank transfers, and various e-wallets. One of the standout features is that HFM does not charge any withdrawal fees, allowing you to withdraw funds without worrying about extra costs. However, please note that wire transfers may incur correspondent fees depending on your bank and international policies.

How to Withdraw Money from HFM

To withdraw money from HFM, follow these steps:

1. Access myHF Area: Log in to your myHF page and account area.
2. Submit Fund Withdrawal Request: Select ‘Fund Withdrawal’ and choose the appropriate withdrawal method and amount.
3. Confirm Details: Confirm the necessary data, processing time, and any potential fees.
4. Submit Request: Submit your withdrawal request.
5. Follow Up: Check the status and confirmations of your withdrawal through your myHF page.

Withdrawal Processing Time

The time it takes to withdraw money from HFM varies by payment method. The HFM accounting team processes transactions quickly, but the overall time can depend on the payment provider. For example, wire transfers may take 2-10 working days depending on your bank and international policies, while e-wallets often process requests instantly.

Trading Platforms

HFM provides the award-winning MetaTrader 4 (MT4) platform as its main trading software, along with its newer version, MetaTrader 5 (MT5). These platforms are popular choices due to their one-click trading, numerous tools, and access to institutional-quality technology. Both beginners and advanced traders will find the software suitable for their needs.

Web Trading Platform

MT4 and MT5 terminals are available in various versions to suit different personal needs, allowing for efficient trading through the Desktop Platform, WebTerminal (compatible with any browser), and MT4 MultiTerminal (for managing multiple accounts simultaneously). The desktop version remains the most comprehensive, offering all features and add-ons.

HFM also provides FIX/API for clients who wish to use the FIX protocol. Additionally, there is an option for copy trading or becoming a professional master through advanced PAMM technology designed by HFM.

Mobile Trading Platform

HFM has developed a new mobile application—HFM Trading App—available for both Android and iOS users. MT4 and MT5 mobile trading apps are known for their advanced capabilities, including interactive charts and over 30 technical indicators and 24 analytical objects. These features ensure a great trading experience on the go, with productivity nearly matching the full desktop versions.

Does HFM Allow Scalping?

Yes, HFM allows scalping and imposes no restrictions on trading strategies. However, it's important to note that various entities and regulations may apply some conditions, so it's always best to review the specific terms and conditions.

For scalping, HFM's range of accounts, particularly those with Zero spreads, can be highly beneficial, enabling traders to effectively implement this strategy.

How to Manage Your Risk

When placing an order, it's crucial to manage your risks wisely. Tools like Limit Orders and Stop Loss Orders are essential for effective risk management:

1. Stop Loss Orders: This tool automatically closes a position at a predetermined price, ensuring that you do not lose more than you are willing to risk.
2. Limit Orders: Helps to set a target price at which your position will be closed to secure profits.

Additionally, HFM provides useful tools such as calculators and a trading journal to help you track your performance. Utilizing these resources is highly recommended to enhance your trading strategy and risk management.

Customer Service

An important factor to consider when choosing a broker is customer service, and HFM excels in this area. HFM offers support in 27 languages, covering nearly all the world's most widely spoken languages. This extensive language support ensures that traders from almost any country can join the platform and receive high-quality assistance, making it a truly global broker.

HFM Research And Education

HFM places a strong emphasis on education, particularly targeting the Africa and Asia regions to enable a diverse range of traders to participate. The broker offers a well-designed Trading Academy that includes Trading Courses, Live Webinars, Video Tutorials, Daily Analysis, and Market Outlooks. Additionally, HFM News Feeds are available in an impressive number of languages, providing the resources necessary for traders to improve their skills, whether they are beginners or professionals.

Trading Research Tools

HFM also provides a comprehensive suite of analytical and research tools, including:

• Analytical Objects: Various tools for detailed market analysis.
• Economic Calendar: Stay updated with key economic events.
• Autochartist: Advanced tool for identifying trading opportunities.
• Trader’s Board: Offers a range of analysis and insights.
• Premium Trading Tools: Additional tools for in-depth research.
• VPS Hosting: Available for enhanced trading performance, with free VPS packages for deposits starting from $5,000.

These resources ensure that HFM traders have access to high-quality research and educational materials to enhance their trading strategies and decision-making processes.

Is HFM Good for Beginners?

Based on our research, HFM is an excellent choice for beginners. The broker excels in providing comprehensive educational resources and research tools, making it an ideal platform for those new to trading. HFM’s Trading Academy, Live Webinars, Video Tutorials, and extensive market analysis resources offer a strong foundation for learning and development.

HFM Review Conclusion

Overall, HFM is a well-established, customer-oriented broker that offers a secure and regulated trading environment suitable for traders of all levels. The broker provides a wide range of services and products tailored to meet diverse trading needs. With various account types, trading platforms, tools, and instruments available, traders can choose strategies that best suit their preferences with minimal restrictions.

HFM supports different trading styles, whether you want to join copy trading, use Expert Advisors (EAs), perform scalping, or become a partner. Additionally, HFM’s pricing is among the most competitive in the industry, making it an attractive option for cost-conscious traders.

In conclusion, HFM offers a robust and flexible trading platform that caters to both beginners and experienced traders, ensuring a comprehensive and satisfying trading experience.