HFM is a broker that hardly needs an introduction. The company is a mainstay on the markets – ever since its inception in 2010, the broker has thrived on the highly competitive Forex market and been able to carve a niche for itself on it. The trading conditions it provides and the high degree of flexibility have earned it not only a lot of renown in the industry and numerous prestigious awards, but the trust of thousands of traders from all over the worlds – the broker reports over 3 500 000 accounts being open with it at the time of writing. The following review will examine the broker in full detail – by the end of it, we are sure you will also see why the company is rated as highly as it is!
Regulation is among the most important aspects of dealing with a stellar brokerage. The best among brokers do not limit themselves to a single license but typically acquire multiple, so they can operate in several jurisdictions and better meet the needs of their clients. And, as such a stellar brokerage, HFM delivers! Here is a breakdown of the broker’s regulation and the perks that are to be derived from it:
Among the many licenses HFM holds is one from the Cypriot regulatory body, called the CySEC. This regulator is famous for the strict regulatory framework it has facilitated, and is often regarded as one of the most important regulators in the EU. This means your money is safe with the Cypriot branch of HFM. Here are the protections the company is able to provide you with:
First and foremost, companies that hold licenses with the CySEC are required to have a significant amount of capital in liquid funds. They need to hold over €730 000 to their name, which helps meet the demands of the competitive market. One of the main issue with brokers that lack such regulation is their tendency to fail – but, with the requirement of the CySEC met, that will certainly not be the case with HFM.
Secondly, clients from the EU have access to a Negative Balance policy, which makes it so no-one can lose more money than what they have deposited with a firm in the event of a margin call. This policy is invaluable for novice traders, but also for experienced clients who could otherwise suffer a bad turn of the markets.
Thirdly, companies are required to participate in guarantee funds – these ensure that, even in the unlikely event of the firm going under, its clients will have access to some form of compensation – they will receive up to €20 000 per person in such a case.
EU brokers are associated with being stable and safe for new clients due to the heightened protections they provide. Here is a table that outlines the measures HFM ‘ European subsidiary takes by virtue of its regulation:
|CySEC requirement:||Does HFM comply with it?|
|Negative Balance protection:||Yes|
|Minimum capital requirement:||Yes, of at least €730 000|
|Compensation scheme:||Yes, up to €20 000|
HFM is a leading brokerage – this means the company offers the best trading software on the markets. This software is Metatrader 4 and Metatrader 5. We will examine both platforms to give you an idea what you can expect from making use of them:
Trading on Metatrader 4 with HFM
HFM provides access to three distributions of Metatrader 4 – one available for desktop, a web-based version of the platform and a mobile app of it. The desktop version of the platform is legendary among traders – there is hardly a trader that has been active on the markets and has not at least heard about Metatrader 4. The platform caused a revolution in the understanding of what trading software should be and pioneered new features.
What set MT4 apart from its contemporaries was the access to a set of deep analytical tools combined with a clean interface, and, most importantly, the access to automated trading. This kind of trading is done using MT4’s Expert advisors – essentially, these are trading bots, ones developed, sold and bought by members of the MT4 community. This has created a persistent niche for the trading software that has led to it surviving still, even after the release of its superior successor, MT5!
Secondly, the web-based MT4 client HFM has access to is also rich in feature, but also has other distinct advantages. It does not require an installation, and that solves compatibility issues with client’s systems, or simply allows them to avoid installing the software if they do not wish to.
Thirdly, the mobile apps HFM offers are available for IOS and Android and have been designed for the trader on the go. They offer access to the markets and a surprising depth of features – even if you are used to the desktop versions of the software, you should give them a go!
Trading on Metatrader 5 with HFM
The Metatrader 5 platform, available to clients of HFM is the successor to Metatrader 4. It overcomes some limitations of the time that are inevitable in the earlier version of the software. For example, clients who use MT5 will have access to all of the assets available to traders on MT4 plus trading with stocks directly, which is not available on the older platform.
Otherwise, what we said about the software stands – the platform is available as a desktop downloadable and features even more analytical tools – indicators, chart types and timeframes, than its predecessor. The professional trader will have the best time trading on the desktop version of the platform. The web-based version of the Metatrader 5 platform is once again best suited for clients who do not wish to install the software or operate from multiple PCs. The mobile versions of the software are once again best suited for the trader on the go and available for both Apple and Android devices!
If you are wondering what platform to make use of, we recommend MT5. The other software, while still being good enough, has stopped receiving support from the developer of the platforms, MetaQuotes. On the other hand, MT5 is regularly receiving new features. Here is a comparison between the features of the platforms:
|Architecture||64-bit (faster)||32 bit|
|Number of indicators||44||38|
HFM provides access to a variety of trading tools. The purpose of these tools is the same across all brokers who offer them – they facilitate trading by providing the client with means of planning their next move on the markets. HFM offers access to an impressive array of these tools, so let’s take a closer look at them:
VPS Hosting services
VPS services are commonly offered among brokers in the industry. They allow clients to trade on personal servers and not have to worry about downtimes or delays cause by the server infrastructure of the broker. The service is available for $30 monthly, but can also be purchased with the Loyalty program bars we mentioned earlier. What’s more, the service fee is also waived for clients who have deposited larger amounts of money in their accounts!
Autochartist is another popular tool that traders with HFM can use. What it does is scan and apply an appropriate chart to the markets, allowing you to understand their movements better without needing to make use of indicators manually. Autochartist also comes at the cost of a monthly subscription, which can instead be paid by making use of the Bars HFM issues in its Loyalty program.
HFM’s Forex News
The Forex market is so volatile because the value of the assets is dictated by many factors. A major such factor is local and international news. It could be difficult to follow all of this news – so HFM offers access to a panel of specifically curated and relevant information, so that its traders can have the edge they need to be as profitable as possible on the markets!
As mentioned above, the prices of the Forex assets on the markets are determined by an array of factors. Another of these factors is local economic events – speeches that heads of Central Banks give, new Retail Sales data being released and so on. These events can also be difficult to track, but, once again, HFM seeks to help with that by providing with an Economic calendar where you can easily trace them and plan accordingly!
HFM exclusive analysis
The descriptions of the two tools above highlight how important it is to stay informed about the movements of the Forex markets if you wish to be profitable and HFM’ commitment to providing you with good data so you can make the best of them. However, there is more that the broker does – it hosts a separate website dedicated to an expert analysis of the markets. On it, you can learn a lot of in-depth information from top experts that is sure to prove useful to you as you embark on your trading journey!
It might be difficult to assess the numbers associated with your trades – the value of the pips on the spreads, the exact size of your position and so on. This is why most brokers offer some sort of calculator that allows their clients to trace these. HFM goes a step further by allowing you to also make use of calculators that assess the risk levels of a position, the potential profits and losses from said position based on the exit level and much more!
The Trader’s board is a tool that allows the clients of HFM to access key information about several major currency pairs like the EUR/USD, GBP/USD and more. Clients can make use of a tool that also shows the sentiment of other traders towards major assets – are they bullish or bearish? This is another tool that HFM provides that is well-worth exploring!
Premium trader tools
HFM offers access to a lot of analytical tools for its Metatrader 4 and 5 distributions. Yet, clients can also make use of additional tools, designed by FX Blue Labs to make the most of their experience. All of them are quite impressive, and well worth your time. The ones we were most impressed with were the Alarm Manager, which allows you to set custom alarms on assets reaching certain values, on pending orders being executed and so on. This is invaluable for clients who are day-trading, as it allows them to better react to the movements of the markets. Another impressive tool is the Trade Terminal Tool which overcomes some of the limitations of the MT4 platform and allows new ways to close positions. These can be closed in bulk, which is a functionality that is normally only associated with MT5! If you are interested in learning more about these premium tools, do not hesitate to go to the HFM website to do so!
Last but not least is the special app HFM has developed to allow clients to do several things from their Android and IOS devices. Perhaps the most important of the features of the apps is the ability to manage your account’s balance – you can top up your account or withdraw funds using it. You can also access HF Copy – the broker’s social trading feature through the app, which allows you to trach and mimic the movements of the top traders with the company at a moment’s notice, which is especially suitable for traders who are still learning the ropes of trading. There is a lot more you can do with the app HFM has – so if you are a client of the broker already, or plan on becoming one, make sure you give it a spin!
HFM offers access to several distinct classes of assets. Of course, the most popular asset with the broker is Forex, but clients can make use of 8 more distinct categories of assets. We will delve a bit deeper in each of these assets before explaining what trading conditions HFM has available for them:
A class of assets which is quite popular among the retail trader because of the higher leverage and lower trading costs that have been associated with it. The clients who chose to trade Forex with HFM can make use Major and Minor currency pairs alike.
Instruments in this category are preferred by clients who seek lower risks and volatility – rather opposite to the client who might be looking to trade Forex. Yet, HFM provides both of these clients not only with access to the assets of their choice, but also does so at excellent conditions.
Commodities include consumable goods and raw products like Cotton, Sugar and others. These assets are associated with a high volatility due to their price being driven by a multitude of factors, and are best used by clients who prefer a more risky trading style.
Another less volatile asset class, HFM allows its clients to trade CFDs on Gold, Platinum, Silver and Palladium. All Metals can be used as hedges against inflation, as the value of the assets rarely experiences any extreme fluxes.
Energies CFDs include Spot and Futures contracts for assets like Oil. Traders who wish to engage with these assets should know that the price of Oil is quite fluctuant. During the Covid 19 pandemic, it even briefly went into the negative as consumption was driven down!
Indices and Shares
With HFM you can trade indices and shares from top exchanges and companies. The prices of these assets is once again quite heavily influenced by world economic events, so make sure you use the trading tools we described before if you wish to engage with them! Additionally, clients of HFM will be able to make use of DMA stocks.
The Exchange-Traded Funds (ETFs) are also sometimes referred to as “baskets” – this is because these assets are not one, but rather, a combination of investment assets – they include different stocks, commodities and so on that are grouped based on a certain criteria. HFM offers technology baskets, real estate baskets and so on.
The trading conditions with the broker we will examine are the spreads, its leverage and minimum deposit. Note that HFM offers access to four different account tiers – the Premium, Zero Spread, Premium Pro and HFCOPY accounts. Here is what the trading conditions with these accounts look like:
|Account name||Minimum deposit||Spreads||Leverage|
|Premium||€100||From 1 pip||Up to 1:30|
|Zero Spread||€200||From 0 pips||Up to 1:30|
|Premium Pro||€5000||From 1 pip||Up to 1:400|
|HFCOPY||€1000 for SPs, €300 for Followers||From 1 pip||Up to 1:30|
We will now discuss these conditions in more detail on an account basis. Firstly, the Premium account lives up to its name – it has a competitive minimum deposit, with brokers charging around €100 – 200 to open a full account nowadays. There is also a competitive spread of 1 pip for FX majors, which is once more on par with the rest of the industry. Finally, the leverage is of up to 1:30 for assets like the EURUSD – this is done as per EU regulation, which has rightly reduced the maximum leverage available to the retail client to make sure the funds of said client are adequately protected.
Secondly, the Zero Spread account is perfect for clients who do not wish to trade with spreads. Instead, HFM will charge them with a commission based on the volume of their trade when they open and close it. The size of the commission is $4 per lot on opening or closing for a total of $8 per lot. The leverage is the same, due to the restrictions we mentioned. Finally, while the minimum deposit is higher, there is also the fact that zero spread accounts have higher minimum deposits in the industry as a rule.
Thirdly, the Premium Pro account is designed to meet the needs of professional traders. These are traders who meet the criteria of what the FCA regards as “professional trader” – they have a certain experience on the markets, have executed a certain trading volume or have a certain amount of funds. In turn, they waive some of the protections the EU provides them with and gain access to a higher leverage. In practice, this means these clients lose their access to compensation funds but gain access to a leverage of up to 1:400.
Lastly, HFM provides access to the HFCOPY account. We have previously hinted at copy trading and how it works – clients can follow the top traders on the broker’s platform, called Strategy Providers (SPs) and mimic their traders in real time. This allows clients to learn how to trade Forex directly from other clients. The trading conditions for the account are identical to the Premium account, with the difference in the cost of entry. If you wish to be an SP, you need to come up with €1000 to open an account, and if you wish to copy others, the minimum deposit is no less than €300. Do keep in mind that there are additional costs – the SPs can set their own commission for their services!
It is important for a broker to be flexible in every aspect – and HFM succeeds in this, as the company has a plethora of deposit methods, depending on whatever is more comfortable for the client. The company takes deposits via credit cards, bank transfers, the Skrill and Neteller e-wallets and other payment methods. Do note that not all payment methods are available in all jurisdictions HFM has offices in. The company also charges no deposit fees and covers the fees for deposits over $250 via bank transfers. Here is a table with the deposit methods HFM accepts:
|Deposit method||Does HFM accept it?|
When it comes to withdrawals, HFM complies with common AML policy, which states that the clients of the broker will only be able to withdraw their money by the means in which they have deposited it. Withdrawals will take up to 24 hours to be processed and will be charged with no additional fees – however, third-party fees from payment processors could come into play. These fees are not charged, nor contribute to HFM in any capacity!
Any decent broker allows its clients to access the markets at favorable conditions – but the truly excellent brokerages like HFM allow them to make the most of said conditions with a comprehensive educational module. HFM allows its clients to make use of a wealth of information, with the broker offering them access to webinars, useful articles and videos, a daily analysis from FX experts and e-courses on Forex trading.
Whether you are a novice trader, or an experienced pro, we are sure that the educational program HFM has has something to offer for everyone. This once again underlines the caliber of the broker at hand, and the fact it has more than earned its many prestigious awards!