HFM (HotForex)

Regulation: Although HFM has an excellent reputation in the Forex trading community, Deutsche traders will be onboarded through its subsidiary registered with Saint Vincent and the Grenadines FSA. The SVG FSA is not a regulator and does not supervise trading or protect traders.

On the other hand, HFM does have a good reputation, and its other operations are overseen by some of the better regulators, including the UK’s FCA. But Deutsche clients must rely solely on the reputation of HFM as no additional measures exist to ensure client protection.

Safety Features: In a show of good faith, HFM segregates all funds from the company’s operating capital and offers negative balance protection to all its clients. No regulatory oversight also means that HFM can offer higher leverage and bonuses to Nigerian traders, which may be attractive to some. 

Opening an account at HFM is a quick and hassle-free process. However, it took two days for our accounts to be verified, which is longer than other similar brokers.

It took us about 3 minutes to open an account at HFM. We could immediately deposit funds into our accounts, but our accounts were only ready for trading after two days.

As a Deutsche trader, you can open an account at HFM, but will need to meet all the minimum deposit amounts to do so; these are:

• Cent Account: 0 USD 
• Premium Account: 0 USD
  
• Pro Account: 100 USD
• Zero: 0 USD
• HFcopy Account: 100 USD

We found that opening a live account at HFM is easy and takes less than 3 minutes. While HFM also offers Corporate Accounts and Joint Accounts, we will focus on opening an Individual Account:

1. Initially, we were required to provide our full name, phone number, email address, and date of birth. We also had to choose whether we wanted the base currency of our account to be USD or EUR. 
   
2. Once this step was complete, we accessed our MyHF dashboard. This is the administrative hub for demo accounts, live accounts, and finances.
3. From the MyHF hub, we chose our account type and submitted our Know Your Customer (KYC) documentation. HFM needed at least two documents to accept us as an individual client:
   • Proof of Identification – current (not expired) coloured scanned copy (in PDF or JPG format) of your passport. If no valid passport is available, a similar identification document bearing a photo such as an ID card or driving licence will work.
   • Proof of Address – a Bank Statement or Utility Bill. The documents provided should not be older than 6 months and your name and physical address should be clearly displayed.
   • Important Note: The name on the Proof of Identification document must match the name on the Proof of Address document.
   • We were able to upload our documents directly from the myHF area; but you can also scan them and send them via email.
4. We were also asked to complete a short form to help HFM assess the state of our finances and trading knowledge. While most brokers omit this step in the account-opening process, it is a responsible move in an industry that is often accused of an irresponsible approach to consumer protection.
5. Once this step was complete, we were required to make at least the minimum required deposit for our chosen account via one of HFM’s deposit methods. 

Our documents were checked by the verifications department and were approved in around 48 hours, which is longer than other similar brokers. Note that any deposits will be credited to the account only after your documents have been approved and the myHF area is fully activated.

We advise you to read HFM’s risk disclosure, customer agreement, and terms of business before you start trading.

HFM offers an impressive range of financial assets, including cryptocurrencies.

In May 2023, HFM restructured its accounts, removing the minimum deposits on three of its five accounts and increasing leverage from 1:1000 to 1:2000. 

Despite the variation, overall trading costs are lower than average across all five accounts, and the accounts offer different benefits in terms of trading strategies. 

We opened and tested HFM’s accounts:

Cent Account

The Cent Account is good for beginner traders who want to keep risk as low as possible while learning. With no minimum deposit requirement and trades denominated in USD cents (USC) rather than USD, trading costs are very low on this account, though potential profits are low too. Variable spreads start from 1.2 pips on major pairs, leverage is up to 1:2000, and traders can open a maximum of 150 positions simultaneously. Because this is a Cent Account, it is only denominated in USC.

Premium Account

The Premium Account is a good entry-level account for beginner traders, with no minimum deposit requirement. Variable spreads start from 1.2 pips on major pairs, which is tight for an account with no minimum deposit requirement, and no commissions are charged. Leverage is up to 1:2000, traders can open a maximum of 500 positions simultaneously.

ZERO Account

This is a market execution account with spreads starting at 0 pips on the EUR/USD. Where previously there was a minimum deposit requirement of 200 USD to open the ZERO Account, there is now no minimum deposit requirement. As with all raw spread accounts, you will be charged a commission – in this case, the charge is 3 USD per lot (6 USD total round turn) on major forex pairs. These are some of the lowest trading costs in the industry.

Pro Account

With ultra-low spreads, leverage up to 1:2000 and no commissions; the Pro account caters to more experienced traders who want to take their trading to the next level. Spreads start at 0.5 pips (EUR/USD), which is much tighter than other brokers, and the account has a reasonable minimum deposit requirement of 100 USD. 

HFcopy Account

The HFcopy Account is available to both Strategy Providers (SPs) and Followers who have joined HFcopy. SPs can open an HFcopy Account to build their inventory of Followers and trade in exchange for a Performance Fee, as high as 50%. Only available on the MT4 platform, the spread starts at 1 pip, and trading instruments offered on this account are limited to Forex, Indices, and Gold. The minimum deposit is 300 USD for SPs and 100 USD for Followers, and accounts are only denominated in USD.

HFM App

A portal for MetaTrader 4 and MetaTrader 5, the upgraded HFM App is highly customisable, and has a sleek design and intuitive interface. One of the best mobile trading apps available, we were very impressed with how traders can customise their chart types and views, change their trading and appearance settings, and choose whether they place an order based on the amount, lots, or in units.

The HFM App also allows traders to easily transfer, withdraw, and deposit funds, and has an integrated economic calendar. Traders can access HFM’s educational materials (including registering for beginner, intermediate, or expert level webinars) and news based on their favourite instruments:

Overall, we think this is one of the market’s most user-friendly and feature-rich apps, and the recent upgrade will certainly attract many traders.

MT4/MT5 Mobile Apps

We found that the HFM MT4 and MT5 apps allow traders to work from anywhere, with nine timeframes, 30 indicators, and interactive currency charts. We were able to close and modify existing orders and calculate profit/loss in real-time. We also find it easier to search for instruments than on the web trader versions of the platforms.

Like many other brokers, HFM offers MT4 and MT5 but does not offer its own desktop trading platform. 

While MetaTrader 4 and MetaTrader 5 are both excellent trading platforms, many other CFD brokers also offer their own web-based platforms, which tend to be easier to use for beginner traders. On the other hand, the benefit of HFM offering third-party platforms such as MT4 and MT5 is that traders can take their own customised version of the platform with them should they choose to migrate to another broker.

For the purposes of this review, we tested both of HFM’s web trader platforms.

MetaTrader 4 (MT4)

Our review found that HFM offers the standard version of MT4, which has 24 graphical objects and 30 built-in indicators. However, it also offers Premium Trader tools, available to clients who deposit more than 200 USD, which plug directly into the MT4 platform, enhancing its functionality (click here for more on Premium trader tools). 

We found that the platform’s interface is dated, but it is fully customisable. There are three chart types, including Line, Bar, and Candlestick charts and you can access a wide selection of indicators in multiple timeframes.

HFM also offers support for MT4 MultiTerminal, providing a convenient method of managing multiple accounts simultaneously from a single interface.

MetaTrader 5 (MT5)

MT5, the newer version of its predecessor, MT4, is also available at HFM. We recommend using MT5 if you are looking for a more powerful and faster trading platform when it comes to back-testing functionality for automated trading algorithms. Additionally, traders prefer MT5 for its depth of market display, additional technical indicators (38 as opposed to 30 on MT4), and analytical tools. 

Both MT4 and MT5 are available as downloads, browser-based, and on iOS and Android devices. Mobile access is 24/7, and mobile apps employ the latest SSL encryption technology for security.

Overall, we found that HFM provides a good selection of third-party platforms but lacks its own in-house trading platform, which is usually more user-friendly.

As a regulated broker, HFM ensures that all Anti-Money Laundering rules and regulations are followed. As such, all non-profit funds are returned to the original deposit source. 

Accepted Currencies: When we opened our account at HFM, we were given the choice of four base currencies: USD, EUR, NGN or JPY.

Local bank transfers: We were pleased that HFM offers free online bank funding for clients with online bank accounts. This is a much faster method of depositing and withdrawing funds than a standard bank wire, with deposits reflecting almost instantly and withdrawals received within 2 business days.

Traditional deposits are handled on weekdays and conditions apply to each deposit option.

HFM offers an excellent range of trading tools, including Autochartist, a free VPS service, and a set of Premium Trading Tools. While all these tools are provided free, we were disappointed that traders are required to make a substantial deposit before access is provided.

Autochartist

For all HFM clients with a minimum deposit of 100 USD/1500 ZAR, Autochartist is an award-winning automated technical analysis tool that plugs into MT4 and MT5 and scans all available CFD markets for trading opportunities. It is one of the best technical analysis tools on the market, and we were pleased to see that HFM subscribes to its services.

Autochartist’s advanced pattern recognition engine identifies the strongest potential trading opportunities and predicts future price movements. Some of Autochartist’s key features are:

• Chart pattern recognition
• Fibonacci pattern recognition
• Key level analysis
• Pattern quality indication

VPS

HFM clients with a minimum deposit of 5000 USD can also subscribe to a free VPS hosting service provided by external third-party providers. VPS services ensure trades are never disrupted by technological or connectivity issues, such as load-shedding or internet service failure. The VPS service is only available to traders using the MT4 platform. See below for more details:

Premium Trader Tools

Available to all HFM clients with a minimum deposit of 100 USD/1500 ZAR, Premium Trader Tools give traders access to institutional quality technology, including advanced trading tools, user-configurable news and information, and trade analysis. It also includes an array of sophisticated alarms, messaging systems, and live sentiment and correlation tracking. A few of the tools in the package include:

• Trade Terminal: A feature-rich professional trade execution and analysis tool, providing several trading features and order controls that are not included in MT4 or MT5.
• Mini Terminal: The mini-terminal facilitates trade management by making commonly-used trading features more accessible than in the native version of the software.
• Connect: A customisable news feed aggregator and interactive economic calendar
• Correlation Matrix and Correlation Trader: These tools work together to show correlations between pairs of trading symbols. It functions with any symbols available in the trading platform, allowing a calculation of the correlation between multiple asset classes against Forex. The Correlation Trader will then allow for a detailed inspection of the correlation between any two instruments.

Other trading tools available at HFM include a range of trading calculators, which can be used to calculate pip value, swap fees, risk percentages, and support and resistance levels.

HFM’s research and market analysis is divided into three main sections, each of which provides a specialised benefit for traders looking for market insight and trading opportunities.

Forex News

In partnership with FXSTREET, a respected market news aggregator and publisher, HFM provides a constant stream of news that impacts the markets. While the main focus is on geopolitical events and macroeconomic movements, we found that there is some reporting on technical analysis – mainly from large banks and other financial institutions. With new stories every few minutes, 24/5, this is an excellent resource for traders using all types of strategies.

HFAnalysis

This is the hub for HFM’s own market research content. The focus is a market news blog, split between fundamental and technical analysis, and trader education. From here, we were able to access monthly and quarterly outlooks, video analysis, special reports, and intraday charts. We were also able to access the HFM podcast; generally published mid-week, this is a detailed look at recent market movements and a look ahead to potential market-impacting events. Overall, we found that the analysis provided by HFM’s experts is detailed and accurate and is on par with the in-house research provided by other large international Forex brokers.

Advanced Insights

This plugin for MT4 and MT5 provides sentiment and volatility analysis from an insight engine that applies big data AI to millions of news articles and live trading positions. The plugin also provides a timeline of the upcoming events and presents detailed infographics on HFM’s full range of assets. While this tool is free, traders must have deposited at least 100 USD and made closed trades worth 10 lots or more in the previous two months.

Traders who open a demo or live account will get access to the HFM e-Course. This course is well-structured and includes the basics of Forex theory and Forex trading, reading, and interpreting charts, trading strategies, trading psychology, and technical analysis.

Video tutorials are available without registration, and these cover introductory concepts, MetaTrader tutorials, trading strategies, and lessons in economic theory.

Webinars on current events, advanced trading strategies, and risk and money management are run every few days. These webinars do not require an account at HFM, but you will need to register

Overall, the quality of the educational content is very high, and HFM obviously does its best to educate beginner traders. More experienced traders will also find the information and material on offer useful, especially the webinars and video analysis on more advanced topics. This is unusual in the industry, as while most brokers will try to educate beginners, traders with more experience are often underserved.

HFM Demo Account

HFM offers an unlimited demo account, allowing prospective traders to test trading strategies under real market conditions. Demo accounts are loaded with 100,000 USD in virtual currency and have access to both the MT4 and MT5 platforms. 

Award-winning customer service and a client-focused approach to business mean that beginner traders at HFM can rely on excellent support. 

Support is available 24/5 in over 27 languages via email, live chat, and telephone. 

For the purposes of the review, we tested the live chat and telephone services. Our call was received immediately, and we were transferred to the correct department, which answered all our questions to our satisfaction. The live chat agents were also responsive and highly knowledgeable.