HFM Review: 5 facts to consider (February 2023)

HFM Review: 5 facts to consider (February 2023)

Rating: 4.6

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HFM is a respected global broker that is operated by HF Markets Group. This company has been on the market for over 2 decades – since 2010 – and is a true industry staple. It has managed to earn the trust of over 3.5 million clients and win a number of prestigious awards due to its reliability and the great trading conditions it offers through its various subsidiaries.

Without a doubt, HFM is an option worth considering if your goal is to trade with an international, reliable broker that also offers amazing conditions.

HFM REGULATION AND SAFETY OF FUNDS

HFM is a part of the HF Markets Group of companies – one of the biggest and most respected brands in the forex industry. The brand has multiple offices around the world and most of its subsidiaries are regulated by some of the strictest financial authorities.

HFM itself is the offshore branch of HF Markets Group. The broker is based in St. Vincent and the Grenadines which means that it does not hold a formal license. The local authority of the country, SVGFSA, does not monitor the activities of forex brokers and does not issue licenses. That is why we generally do not advise readers to open accounts with such brokers.

That rule has exceptions – in cases when the broker has a reputable parent company that holds multiple licenses. Such companies usually open offshore branches with the goal to offer more competitive trading conditions and avoid some of the restrictions that exist in stricter jurisdictions. This is also the case with HFM – all other subsidiaries of HF Markets Group are strictly regulated. Over the 10+ years this broker has been on the market, it has proven to be a very reliable trading option.

The company behind HFM was originally established in Cyprus and is still headquartered there. Cyprus is a main EU regulatory hub – the local financial regulator, the Cyprus Securities and Exchange Commission (CySEC), has made a name for itself as being one of the best in Europe. In Cyprus, HF Markets is regulated as HF Markets Fintech Services Ltd.

The broker is also regulated in the UK – another popular location for European brokers. Here, HF Markets is known as HF Markets (UK) Limited. The Financial Conduct Authority (FCA) is the financial regulatory body that deals with licensing UK brokers.

EU and UK brokers have to meet pretty similar requirements in order to obtain a license. First of all, they have to maintain a minimum capital of €730 000. This money cannot later be used for the broker’s day-to-day business and serves the purpose of proving their good financial standing and long-term approach. Licensed brokers in the UK and the EU have to participate in compensation funds. In the event of a broker becoming insolvent, clients can receive compensation of a certain size. The exact size varies depending on the jurisdiction – up to €20 000 in the EU or £85 000 in the UK. Client money must be kept in segregated bank accounts. This not only additionally protects your funds in case the company goes bankrupt but also proves that the broker is not using your investment for its own purposes. Negative balance protection is also a mandatory condition for EU and UK-regulated brokers. This means you could never lose more money than you have in your account, at least as a retail trader.

Outside of Europe, the HF Group is regulated in South Africa by the Financial Sector Conduct Authority (FSCA). In recent years, South Africa has also gradually been turning into a popular regulatory hub. The requirements brokers have to face here are a bit different than those in Europe. FSCA-licensed brokers have to have a local South African office and be evaluated by the FSCA based on their reputation, financial stability, and the qualifications of their employees. They also prove that they have enough funds to cover all their expenses and potential debts. This means that the minimum capital requirements are determined on a case-by-case basis.

HF Markets (DIFC) Ltd is the Dubai branch of the broker. This subsidiary is licensed by the Dubai Financial Services Authority (DFSA), a respected Middle Eastern regulator. Local companies must be constituted by at least 60% UAE nationals, or have a domestic representative if they are foreign. They must also hold capital of at least 1 million dirhams ($275 000).

HF Markets’ other offshore branch is based in Seychelles and licensed by the Financial Services Authority of Seychelles (FSA). Local brokers do not have to do a lot in order to obtain a license. They must hold capital of at least $50 000 but that money can later be used for other activities and purposes. Segregation of client funds is not a must. Seychelles-based companies must have 2 shareholders and 2 directors but the same person can act as both a shareholder and a director.

Finally, the company – as HFM Investments Ltd – is regulated by the Capital Markets Authority of Kenya (CMA). This country is trying to become a main regulatory hub in emerging markets and has some new requirements to match that urge. Local brokers must maintain a minimum operational capital of 50 million Kenya Shillings ($500 000) plus an additional 5% of the money owned by its customers. 80% of this capital should be in cash or similar (domestic) financial instruments.

HF Group has made sure to obtain a license from a strict financial authority in every region of the world. Over the years, the brand has made a name for itself as a trustworthy, stable trading solution. HFM is a good option for clients who want to get access to the extremely attractive conditions offshore brokers can offer but also be sure that they are trading with a reliable regulated company.

Company NameRegulatorMinimum Capital RequirmentsCompensation Funds
HF Markets Fintech Services LtdCySEC (Cyprus)€730 000€20 000
HF Markets (UK) LtdFCA (the UK)€730 000£85 000
HF Markets (UK) LtdDFSA (Dubai)1 million dirhams ($275 000)No
HF Markets SA (PTY) LtdFSCA (South Africa)determined on a case-by-case basisNo
HFM Investments LtdCMA (Kenya)50 million Kenya Shilling ($500 000)No
HF Markets (Seychelles) LtdFSA (Seychelles)$50 000No

HFM TRADING SOFTWARE

HFM offers you the possibility to try out both MetaTrader 4 and MetaTrader 5 – the two best-known platforms in the trading industry.

Both of these platforms have become popular for their advanced functionality and high level of efficiency. The number of charting and analysis tools and other useful trading features is unrivaled. Still, both MT4 and MT5 are intuitive and user-friendly which makes them easy to navigate. However, we can say that MT4 is more accessible for beginners while MT5 offers more additional tools and access to more markets which makes it a good option for seasoned traders.

On both platforms, you would be able to use the software’s own Expert Advisors to track markets and trade automatically, or create your own trading bots and indicators – either from scratch or with the help of preprogrammed building blocks. You could also use Strategy Testers to see how well your EAs cope, set signals or subscribe to those set by others for a small monthly fee (usually around $35), or purchase additional tools on the MT market. MT5 comes with a larger number of graphical objects and indicators as well as features like community chat, a built-in calendar, and the opportunity to export charts in Excel.

Here are some key features of MT4 and MT5 compared:

MetaTrader 4MetaTrader 5
Technical Indicators3038
Timeframes921
Pending Order Types46
Depth of MarketNoYes
Strategy TesterSingle threadMulti-threaded
Hedging AllowedYesYes
Netting AllowedNoYes
InstrumentsForex, CFDsForex, CFDs, Stocks, Commodities, Options, Futures

In addition to MT4 and MT5, HFM offers its own online trading app that is available on Android and iOS. The app is super easy to use, customizable and secure and is perfect for trading from your mobile device.

HFM TRADING CONDITIONS

HFM offers 6 different account types and gives you the possibility to trade a huge variety of instruments – forex, metals, indices, commodities, and CFDs on stocks.

For beginner traders, we would recommend either the Micro or the Cent account. The main difference in such accounts is the size of one lot. 1 lot on a Cent account is 1000 units while 1 lot on a Micro account is 100 000 units which is standard.

The minimum deposit for both the Micro and the Cent account is just $5. The spreads you would get on both account types are variable and start from 1 pip, and the maximum number of simultaneously open orders is 150. The maximum leverage is as high as 1:1000 but that number can be adjusted by the broker in case you have more than $300 000 in a Micro account. Cent accounts can be either in USD or JPY, while Micro can be opened in USD, EUR, NGN, and JPY. The margin call/stop-out level also varies – 40%/ 10% on Micro accounts and 50%/ 20% on Cent accounts.

The Premium account is another affordable option for more experienced traders. The minimum deposit required is still $5 and spreads still start from 1 pip. However, the maximum possible leverage is set at 1:500. That number can, again, be adjusted if you have more than $300 000 in your account.

The Zero Spread account is a good choice if you want to get access to lower spreads. The spreads on this account type start from 0 pips but you will be forced to pay an additional commission of varying amounts – between $6 and $8 round-turn depending on the instruments you are trading. This makes a Zero Spread account a cheaper option in the long run. The price of a pip per lot is $10 which means that the amount of money you have to pay on all other account types is at least $10. The maximum leverage on a Zero Spread account is still 1:500 but the minimum deposit is higher – $200.

HFM offers PAMM Manager accounts. Such accounts are only available on MT4. That account can be opened as both Premium and Premium Plus. The minimum deposit amount is the same in both cases – $250 – and so is the leverage – 1:300. The main differents are the spreads and commissions. On the PAMM Premium account, there are no commissions but the spreads start from 1.3 pips. On the Premium Plus account, on the other hand, spreads start from 0 pips but there is an additional commission of $8 round turn. This makes the Premium Plus account a much cheaper option.

Finally, you can open an HFCOPY account you could use specifically for copy trading. Such an account would allow you to either copy the strategies of successful traders or act as a Strategy Provider, let others copy your trades, and earn a commission. The minimum deposit amount is $500 for Strategy Providers and $100 for Followers. The maximum possible leverage is 1:400 and spreads start from 1 pip. Each  Strategy Provider can have between 200 and 1000 followers. No bonuses are available on this account type.

With so many account types to choose from, we are sure that you can find one that suits your needs.

Account TypeMinimum DepositSpreadLeverageAccount CurrenciesCommissionsMaximum Simultaneous Open Orders
Cent$5From 1 pip1:1000USD, JPYNone150
Micro$5From 1 pip1:1000USD, EUR, NGN, JPYNone150
Premium$5From 1 pip1:500USD, EUR, NGN, JPYNone300
Zero Spread$200From 0 pips1:500USD, EUR, NGN, JPY$6-$8 round turn500
PAMM (Premium or Premium Plus)$250From 1.3/0 pips1:300USD, EUR, NGN, JPYNone on  Premium, $8 round turn on Premium Plus500
HFCOPY$500 for Strategy Provider, $100 for FollowerFrom 1 pip1:400USDNone300

HFM BONUSES AND PROMOTIONS

HFM offers some attractive bonuses and promotions in store for its global clients. Those bonuses are generally non-withdrawable and are meant to increase your equity. However, while the bonus itself cannot be withdrawn, all profits can be.

There is a $35 No-Deposit Bonus for all new clients. You can receive that bonus automatically upon registration.

Upon your first-ever deposit, you can receive a 60% Welcome Bonus.

From your second deposit onward, a 30% Loyalty Bonus is applied. This bonus is available to all clients, not just new ones.

You can also earn some attractive rewards if you become a part of HFM’s loyalty program. The more you trade with the broker, the more points – or HFM Bars – you earn. You will receive 100 HFM Bars just for getting approved and funding your account. After that, the amount of HFM Bars you receive will depend on how active you are as a trader.

HFM Red6 bars per lot
HFM Silver (after 31 consecutive trading days)8 bars per lot
HFM Gold (after 62 consecutive trading days)10 bars per lot
HFM Platinum (after 105 consecutive trading days)12 bars per lot

 

HFM Bars can be exchanged for a number of rewards. 1 month’s subscription to Autochartist would require 150 HFM Bars while 1-month access to Silver VPS would require 1100 bars. You can get a 1-hour private session with an HFM Market analyst for 2500 bars. Finally, it is always possible to redeem bars for cash. You should have at least 1000 HFM Bars – after that, you will get $1 for every 35 bars you redeem.

HFM organizes regular trading contests and gives you the chance to earn even more rewards – from HFM merchandise and cash prices to various awards such as iPhone, Airpods, smartwatches, PS5, and drones.

Check HFM’s website for more information on rewards

HFM DEPOSIT AND WITHDRAWAL METHODS AND FEES

HFM accepts an extremely wide variety of deposit options and does not charge fees on either deposits or withdrawals.

You would be able to use your Visa or MasterCard card to deposit – such payments are processed almost instantly but keep in mind that you would not be able to deposit more than $10 000 using this payment method.

There are no such restrictions for wire transfer payments. However, they take longer to process – between 2 and 7 business days – and may be subject to some fees charged by your bank. You would also have to deposit at least $100 to use this payment method.

HFM accepts some popular electronic payment solutions such as Neteller, Skrill, FasaPay, and PayRedeem. The maximum deposit amount for FasaPay is $5000 while the one for Skrill and Neteller is $10 000. The maximum deposit amount with PayRedeem depends on your PayRedeem Tier. Fees charged by PayRedeem are not covered by the broker. The minimum deposit amount for Skrill and PayRedeem is higher – $10.

Another option is depositing in crypto – HFM accepts Bitcoin, Ethereum, Tether, and Litecoin. The minimum deposit amount here is $30 while the maximum is, again, capped at $10 000.

The minimum withdrawal amount for most payment methods is just $5. The exception to that is wire transfers and PayRedeem where that number is a bit higher – $100. If you are withdrawing via crypto, you would have to withdraw at least $10.

BOTTOM LINE

As one of the branches of a multi-regulated international company, HFM is a safe investment choice. Not only does this broker offer access to a wide variety of account types but it also allows its clients to trade on some of the best platforms in the industry. The high number of attractive bonuses, promotions, and rewards is also not to be neglected.

All in all, HFM is an excellent option for clients of all experience levels and nationalities. Check out their website for exquisite offers.

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