HYCM

Deutsche traders will be trading under the HYCM Limited subsidiary registered in St Vincent and the Grenadines (BVA FSC). For all intents and purposes, the BVA FSC is not considered a regulator and applies no enforcement or supervision of any Forex or CFD trading-related activities.

Clients must rely solely on the reputation of HYCM, as no additional measures exist to ensure client protection. However, in a show of good faith, HYCM segregates all funds from the company’s operating capital at top-tier banks, and it offers negative balance protection to all its clients.

While Deutsche may be apprehensive about trading under an essentially unregulated subsidiary, HYCM subsidiaries in Europe are also regulated by the FCA and CySEC, which are both top-tier authorities. Additionally, HYCM offers its clients account statements that are regularly audited by external audit firms. 

With the financial backing of its parent company, worldwide regulation, and frequent industry recognition, HYCM is considered a safe option for traders.

The account opening process at HYCM is user-friendly and fully digital, and accounts are ready for trading within one day.

All Deutsche residents are eligible to open an account at HYCM as long as they meet the minimum deposit requirements. These are:

• Fixed Account: 100 USD
• Classic Account: 100 USD
• Raw Account: 200 USD

Creating an account is straightforward, the process is fully digital, and accounts are usually ready within one day. HYCM offers individual and corporate accounts, but we will focus on opening an individual account:

1. New traders will have to click on the “Open an Account” button at the top of the page where they will be directed to register an account.
2. HYCM’s intake form requires clients to fill in their personal details (including name, country of residence, email address, birth date). 
3. Next traders need to select their preferred trading platform (MetaTrader 4 or MetaTrader 5), their account type (Fixed, Classic, or Raw), and their preferred account base currency. Traders can open additional accounts later.
4. Once this step is complete, clients are required to fill out a questionnaire that helps HYCM assess the trader’s investment knowledge, experience, and expertise to deem the suitability and relevance of the services on offer. While most brokers don’t include 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. HYCM requires at least two documents to accept you as an individual client:
   • Proof of Identification – HYCM accepts all government-issued identification documents such as Passport, national ID card, driving license, or other government-issued ID. 
   • Proof of Address – Proof of residence/address document must be issued in the name of the HYCM’s account holder within the last 6 months and must contain a trader’s full name, current residential address, issue date, and issuing authority. 
   • If traders want to use a debit or credit card, these will need to be verified as well.
6. After the application is approved, traders can login and fund their accounts
7. We advise that you read HYCM’s risk disclosure, customer agreement, and terms of business before you start trading. 

Overall, HYCM’s account-opening process is fully digital and hassle-free, and accounts are generally ready to trade within one business day.

HYCM’s range of financial instruments for CFD trading includes Forex, shares, indices, commodities, cryptocurrencies, and ETFs.

HYCM offers three account types. The Fixed and Classic accounts costs are included in the variable spreads, while the Raw Account offers significantly tighter spreads in exchange for a commission per lot traded.

Unfortunately, HYCM only publishes its starting spreads and not its average spreads. Traders should note that because spreads are variable at HYCM (except on the Fixed Account), they will get wider or tighter depending on trade volume and market volatility.

The trading costs on the Fixed and Classic accounts are built into the spread, but are higher than the costs on the commission-based Raw Account.

Additionally, compared to other brokers, HYCM’s trading costs are higher than average on the commission-free Fixed and Classic accounts- the trading costs at most good brokers tend to be around 9 USD per lot of EUR/USD. However, trading costs are lower than average on the Raw Account, and it has a reasonable minimum deposit requirement.

Swap Fees 

Another important cost to consider is the swap rate charged on positions held overnight. Swap fees can be found alongside the instruments in the ‘Contract Specifications’ tab. In the case of Forex instruments, the amount charged depends on both the positions taken (i.e. long or short) and the rate differentials between the two currencies traded.

We opened and tested HYCM‘s accounts:

Fixed Accounts

The Fixed Account is a commission-free account, with spreads fixed at 1.5 pips on the EUR/USD, which is wider than other market makers. The minimum deposit requirement on this account is 20 USD, making it accessible to beginner traders. 

Classic Account

The Classic Account is also a commission-free account with variable spreads starting at 1.20 pips pips on the EUR/USD, which is still wider than other brokers. The minimum deposit on this account is 20 USD, and traders can make use of expert advisors.

Raw Account

As the name suggests, raw spreads start at 0.2 pips on this account in exchange for a commission of 4 USD round turn per lot. The minimum deposit on this account is 20 USD, and traders can make use of expert advisors.

Demo Account

HYCM provides a free demo account that comes loaded with 50,000 of the base currency of your choosing. Demo accounts do not expire unless there is no activity on the account for more than three months, at which time they will be suspended. However, they can be reactivated at any stage. Demo accounts are a great way to practice trading in a risk-free environment, and HYCM allows traders to practice on both the MetaTrader 4 and MetaTrader 5 platforms.

Islamic Accounts

All accounts are available as Islamic (swap-free) accounts. As soon as you have signed up for your account, please contact your account manager, and they will convert the account to swap-free status. Traders should note that although no interest is charged on Islamic accounts, once a position has remained open for longer than 14 days, traders are charged a fee of 5 USD per contract per night. 

Note: Swap-free options are not available on exotic currencies and cryptos.

HYCM’s mobile trading platforms are excellent compared to other similar brokers

It offers MT4, MT5, and its own in-house trading platform, HYCM Trader, which are available on Android and iOS mobile devices and tablets.

MT4 and MT5

Beginner traders should be aware that there is some loss in functionality when compared to the desktop trading platforms, including reduced timeframes and fewer charting options. Generally, it is better to be at your desktop to conduct day-to-day trading and use a mobile device to keep an eye on the markets or close open positions.

The mobile apps allow traders to work from anywhere, with functionality to close and modify existing orders, and calculate profit/loss in real-time. HYCM’s MT4 and MT5 applications are beginner-friendly and well-designed and it is easy to navigate the various folders.

HYCM Trader

HYCM has recently introduced the HYCM Trader app, which allows traders a seamless trading experience on the go. Traders can choose between 300+ assets, execution is ultra-fast, traders can create customised chart layout, perform deposits and withdrawals, and receive the latest market news and analysis.

The advantage of brokers offering third-party platforms such as MetaTrader 4 and MetaTrader 5 is that traders can take their own customised versions with them should they decide to migrate to another broker. However, many brokers offer their own proprietary platforms which are often more user-friendly and easier to set up, which is not the case at HYCM.

The primary difference between MetaTrader 4 and MetaTrader 5 is that MetaTrader 4 is a Forex-only platform, while MetaTrader 5 is a multi-asset trading solution. With MetaTrader 5, you can also trade on stocks, stock indices, and precious metals. MetaTrader 5 also has a built-in news feed and an economic calendar, and trades can be made on a chart.

MetaTrader 4

MetaTrader 4 (MT4) is still undoubtedly the world’s most popular trading platform for forex traders due to its ease of use, feature-rich environment, and automated trading ability. MT4 is available in over 31 languages.

 Features of MT4 include: 

• A built-in library of more than 50 indicators and tools to streamline the analysis process
• An impressive array of 24 analytical tools, available in nine timeframes for each financial instrument.
• Three chart types
• One-click Trading
• Algorithmic trading, which allows any trading strategy to be formalised and implemented as an Expert Advisor. 
• Customisable alerts
• Access to MetaTrader market and MQL4 community. 

While MetaTrader 4 has great customizability, the platform feels outdated, and some of the features may be hard to find. In addition, only the basic orders are available, including Market, Limit, Stop, and Trailing Stop. Additionally, Trailing Stop is only available on the desktop version. MT4 is available on PC and Mac.

MetaTrader 5

The MetaTrader 5 (MT5) trading platform is being adopted by more Forex brokers all the time. It has a more modern interface, allows for an unlimited number of charts to be used, shows Depth of Market, and has a built-in Economic Calendar. It also has a larger number of pending order types than MetaTrader 5 and features an embedded chat system. The MQL5 scripting language is more efficient than its precursor, and MT5 has more advanced charting tools than MetaTrader 5. 

Features include:

• 38+ preinstalled technical indicators
• 44 analytical charting tools
• 21 timeframes
• Six order types
• Additional pending order types
• Detachable charts

MetaTrader 5 is also available on PC and Mac.

In line with Anti-Money Laundering policies, all deposits must be made from a bank account/card registered in your name, and HYCM does not accept third-party deposits.

HYCM offers a broad range of payment methods, including Mastercard, Visa, Skrill, Neteller, Webmoney, and Wire Transfer, and all deposits and withdrawals (except bank wire) only take an hour to complete. Additionally, both deposits and withdrawals are free, except for a few withdrawal methods.

HYCM offers trading accounts denominated in six base currencies, which is around the average offered by most other brokers, but it does not offer accounts denominated in PHP.

Deposits to trading accounts can be made in most national currencies, which are subsequently converted into USD, EUR, GBP, RUB, AED, and CAD. However, HYCM does not support accounts denominated in PHP, which means that Deutsche will have to pay conversion fees on all deposits and withdrawals. Conversion fees can make trading expensive, and affect profitability. 

In order to protect your capital from currency fluctuation, you can have multiple trading accounts in different currencies at the same time. For example, you can have both a EUR and USD account for MetaTrader 4. This gives traders an opportunity to transfer funds from one account to another through a convenient internal transfer to another account.

HYCM does not offer traders any additional tools beyond an Economic Calendar, the services of Trading Central, and a trading calculator. Most other brokers offer various technical analysis tools such as Autochartist, VPS services, and various copy trading platforms.

Trading Central

Trading Central is available to clients who register a live account. A third-party tool, Trading Central’s professional analysts use the most advanced technical analysis tools in the industry to curate relevant information. This tool essentially supports traders without the technical know-how in making trading decisions. Trading Central is one of the most popular trading tools available and provides excellent market analysis, and HYCM does well to offer this service to its clients. 

The market analysis selection at HYCM is limited compared to other similar brokers.

HYCM’s market analysis materials consist of an economic calendar, a calculator, and a market news section curated by both in-house analysts and third-party provider, Trading Central.

HYCM generates in-house research, published under the News category of the website. The market analysis is curated by both in-house market analysts and a newsletter, in partnership with Trading Central, which provides additional trading ideas.

The educational topics are more geared towards helping beginner traders, and cover topics such as Risk Management, Tips for Traders, Trading Tools, Strategies (both simple and advanced), and an excellent introduction to Capital Markets. A well-structured course for beginner traders is also available.

Trading Tools: HYCM’s Trading Tools are a selection of comprehensive and in-depth videos that cover topics such as ‘The World of Global Trading’, Trader’s Psychology’, Technical Analysis’, ‘Technical Analysis’, among others.

Tutorials: HYCM’s video tutorials help traders with getting set up on MetaTrader 5, about the various order types, and how to set indicators on graphs, among others.

Trading Strategies: HYCM provides a selection of ten videos that are geared towards both beginners and more experienced traders, helping them to develop effective trading strategies.

eBooks: HYCM offers four ebooks free of charge, covering topics such as Forex, Commodities and CFDs, Stocks, and an Advanced ebook for more experienced traders.

Beginner’s Course: The Beginner’s Course is a five-part video series covering the basics of Forex trading, trading strategies, and a trading glossary.

Webinars and seminars: HYCM hosts weekly webinars free of charge for all registered users. The webinars teach traders how to analyse various market movements. Traders will learn how to plan for and engage with market-moving events and important risk events ahead of time. Traders can also attend HYCM’s venue-based seminars and learn how to trade like a professional with various experts.

Overall, new traders should find more than enough material to get them started trading here, though more experienced traders may be disappointed by the lack of more advanced topics.

HYCM offers several customer service channels including live chat, email, and telephone support available 24/5. We found the live chat to be the most responsive. Live chat agents were polite and knowledgeable.

In addition, HYCM also has a dedicated Help Centre website, this site is fully searchable and not only answers many FAQs but also has a dedicated education section.