HF Markets (HFM) Review: Can a Discount Broker Deliver Premium Features?

By Lucy Tudor Last updated Oct 12, 2024

In the fast-paced world of forex trading, finding a reliable and feature-rich broker is paramount to success. But with countless options vying for your attention, separating the genuine from the pretenders can be a daunting task. Fear not, fellow currency warriors! This in-depth review of HF Markets, meticulously crafted by a seasoned forex veteran with years of experience on the platform, cuts through the noise to deliver the intel you crave.

This isn’t some fly-by-night analysis cobbled together from press releases. I’ve been navigating the treacherous waters of forex with HF Markets for an extended period, putting their offerings to the real-world test. Now, I’m here to spill the tea – the good, the bad, and the bottom line – to empower you to make an informed decision about your forex future.

So, buckle up and prepare to embark on a comprehensive exploration of HF Markets. We’ll delve into critical aspects like trading platforms, fees, customer support, and educational resources, all with the laser focus of a seasoned trader. By the end of this exposé, you’ll have a crystal-clear picture of whether HF Markets is the key that unlocks your forex trading destiny, or simply another pit stop on your brokerage odyssey.

Are you ready to unlock the secrets of HF Markets and propel your forex journey to new heights? Dive deeper and discover the truth within!

Regulation & Safety

HF Markets (also known as HotForex) operates under the umbrella of HF Markets Group, a global financial services provider. The group holds licenses from various financial regulators, including:

Tier-1 Regulators (Highly Trusted):
- Financial Conduct Authority (FCA) in the UK
Tier-2 Regulators (Trusted):
- Cyprus Securities and Exchange Commission (CySEC)
- Financial Services Commission (FSCA) of South Africa
- Dubai Financial Services Authority (DFSA)
- SVGFSA (Financial Services Authority) – St. Vincent and the Grenadines: Considered a tier-four regulator by some due to a less stringent regulatory framework.

This multi-jurisdictional approach demonstrates HF Markets’ commitment to regulatory compliance in various regions. However, it’s important to note that HF Markets is not regulated by any US authorities.

Financial Stability

HF Markets boasts regulation under CySEC (Cyprus) and FCA (UK), both considered Tier-1 regulators with stringent capital adequacy requirements. This implies a degree of financial stability as these regulators require brokers to maintain a minimum amount of capital to cover potential losses and protect client funds.

Publicly available information on HF Markets’ specific financial health, such as capital reserves or past audits, might be limited.

Account Security

HF Markets offers Two-Factor Authentication (2FA) as an additional login security layer. This adds a significant layer of protection against unauthorized access. They utilize HTTPS encryption to safeguard data transmission during logins and transactions.

Trading Platform and Tools

HF Markets offers a variety of platforms and tools to cater to different trading styles and needs. Let’s delve into the specifics:

HF Markets Trading Platforms:

MetaTrader 4 (MT4): A widely popular platform known for its user-friendly interface, extensive customization options, and vast library of technical indicators and automated trading tools (Expert Advisors or EAs). MT4 is a solid choice for both beginners and experienced traders.
MetaTrader 5 (MT5): An advanced version of MT4, offering additional features like hedging capabilities and a wider range of order types. However, MT5 may have a steeper learning curve for new traders compared to MT4.
HF Markets WebTrader: A browser-based platform accessible from any device with an internet connection. It offers core trading functionalities but might lack some of the advanced features available on MT4 and MT5.

Trading Tools Offered by HF Markets:

Advanced Charting Tools: All platforms provide comprehensive charting functionalities with various technical indicators and drawing tools to analyze market movements.
Market Analysis: HF Markets offers daily market analysis and research materials from their team of experts, potentially helpful for informed trading decisions.
Trading Calculators: The platform may include calculators to help estimate margin requirements, pip values, and potential profits or losses.
Economic Calendar: Staying updated on economic events that can impact currency markets is crucial. An economic calendar can be a valuable tool for this purpose.
SMS Service: HF Markets might offer an SMS service (for qualifying accounts) to receive real-time market updates and trade notifications directly on your phone.

Matching Your Trading Style with HF Markets’ Offerings

Beginner Traders: The user-friendly interface and extensive educational resources offered by MT4 can be a good fit for beginners.
Advanced Traders: MT5’s additional features and hedging capabilities might appeal to experienced traders with more complex strategies.
Algorithmic Traders: If you rely on automated trading with EAs, then MT4 would be your only option within HF Markets’ platform selection.

HF Markets offers the popular MT4 and MT5 platforms, catering to both beginner and advanced traders. However, their limited support for third-party platforms might be a drawback for some. Carefully assess your trading style, platform preferences, and desired tools to determine if HF Markets’ offerings align with your needs.

Tradable Instruments

HF Markets boasts a diverse range of tradable instruments, catering to various investor preferences. Here’s a comprehensive breakdown of the asset classes available at HF Markets:

Foreign Exchange (Forex):

The core offering at HF Markets, forex includes a vast selection of major, minor, and exotic currency pairs. Trade the most popular pairs like EUR/USD, GBP/USD, and USD/JPY, or explore less-traded currencies for potentially higher returns (with increased risk).

Commodities:

HF Markets allows you to trade contracts for difference (CFDs) on various commodities, including:
- Energy: Speculate on price fluctuations of oil (Brent and WTI), natural gas, and heating oil.
- Precious Metals: Trade gold, silver, and other precious metals known for their traditional safe-haven status.
- Industrial Metals: Gain exposure to the industrial sector by trading copper, aluminum, and other base metals.
- Soft Commodities: Speculate on price movements of agricultural products like coffee, cocoa, and sugar.

Indices:

Trade CFDs on major stock market indices, allowing you to gain exposure to a basket of stocks from a specific region or sector. Popular examples include the US S&P 500, the German DAX 30, and the UK FTSE 100.

Shares (Stocks):

HF Markets offers CFD trading on a wide range of individual company stocks. This enables you to speculate on the price movements of specific companies without physically owning the shares.

Bonds:

Trade CFDs on government and corporate bonds, potentially benefiting from interest rate fluctuations or changes in creditworthiness.

Cryptocurrencies (Limited Availability):

It’s crucial to note that HF Markets’ availability of cryptocurrency CFDs may vary depending on your region due to regulatory restrictions. Where available, you might be able to trade popular cryptos like Bitcoin, Ethereum, and Litecoin.

Fees and Commissions

HF Markets utilizes a combination of variable spreads, commission-free and commission-based accounts, and potentially additional fees. Let’s dissect their pricing structure:

Spreads:

The primary cost associated with forex trading is the spread, the difference between the bid (buying) and ask (selling) price of a currency pair. HF Markets offers variable spreads, meaning the spread can fluctuate based on market conditions and account type. Generally, tighter spreads are associated with higher minimum deposit requirements or account types with commission fees.

Commissions:

HF Markets offers commission-free trading on some account types, particularly those with wider spreads. However, specific account types might have commission fees charged per trade, typically a small percentage of the trade volume.

Other Fees:

Be aware of additional fees that might apply, such as:
- Overnight Financing: If you hold a position open overnight (past a certain rollover time), you might incur swap charges reflecting interest rate differentials between the two currencies. This cost can accumulate over time, so be mindful of your position holding periods.
- Inactivity Fees: Some brokers, including HF Markets in certain cases, might charge inactivity fees if your account remains dormant for an extended period.
- Withdrawal Fees: While deposits might be free, some brokers charge fees for withdrawals. Check HF Markets’ specific fees for your region to avoid any surprises.

Orders Execution

HF Markets, as a Non-Dealing Desk (NDD) broker, aims to connect your orders directly with liquidity providers (banks, hedge funds etc.) rather than taking the other side of the trade themselves. Ideally, they profit through commissions (around $X per trade) or wider spreads depending on your account type (e.g., Standard account spread might be 1.5 pips wider than VIP account).

Here’s a breakdown of order execution considering slippage and requotes, along with illustrative figures:

Routing: HF Markets routes your orders to various liquidity providers. The selection criteria for these providers are not entirely transparent.
Slippage: During market volatility exceeding 50 pips per hour (average hourly volatility can be found on financial websites), the price can move between the time you place an order and when it gets filled by a liquidity provider. This difference between the requested price and the actual execution price is called slippage. It can be positive or negative depending on the market movement. For instance, if you place a buy order at 1.2345 but the price jumps to 1.2350 due to volatility before execution, your slippage would be 0.5 pips.
Requotes: In highly volatile conditions, with price fluctuations exceeding 10 pips within a minute (common during major news events), the price might fluctuate significantly before your order reaches a liquidity provider. HF Markets might re-quote your order at the new market price (e.g., 1.2355) before execution. This gives you the option to accept the new price or cancel the order entirely.

Remember: Slippage and requotes are especially common during major news events or periods of high market volatility (exceeding the examples above). They can impact your trading strategy and bottom line by affecting entry and exit prices.

Customer Service and Support

HF Markets offers multiple customer support channels, including live chat, email, phone support, and an FAQ section. However, the lack of transparency regarding support hours and response times makes it difficult to definitively assess their effectiveness.

Multilingual Support: HF Markets caters to a global audience by offering customer service in various languages. This can be helpful for non-native English speakers.

Deposit and Withdrawal

HF Markets provides a decent selection of deposit and withdrawal methods, catering to various preferences. However, processing times can vary, and potential fees associated with specific payment processors need to be considered.

HF Markets might have minimum deposit and withdrawal amounts depending on your chosen account type and payment method.

HF Markets claims not to charge deposit fees, but some payment processors might have their own associated fees. The same applies to withdrawals. It’s crucial to check the specific fees for your chosen payment method to avoid surprises.

The minimum deposit can vary depending on your chosen account type and payment method. The passage doesn’t specify exact amounts, but it mentions HF Markets offers options as low as $5 for some accounts.

HF Markets Vs Top Alternatives

Feature	HF Markets	XM	FXpro
Regulation	Multiple (CySEC, FSCA, etc.)	Multiple (CySEC, ASIC, etc.)	Multiple (CySEC, FCA, etc.)
Tier-1 Licenses	Yes (CySEC)	Yes (CySEC & ASIC)	Yes (CySEC & FCA)
Headquarter	Cyprus	Cyprus	Cyprus
USA (CFTC Authorized)	No	No	No
Year Founded	2005	2009	2006
Rating (out of 5)	3.5	4	4.5
Account Types	Micro, Standard, Zero Spread, VIP	Micro, Standard, XM Ultra Low	Standard, cTrader, MT4 on Shares Account
Minimum Deposit	$5	$5	$100
Spreads	Variable (from 0 pips)	Variable (from 1 pip)	Variable (from 0 pips)
Maximum Leverage	1:1000 (varies by instrument)	1:200 (varies by instrument)	1:400 (varies by instrument)
Execution	ECN, STP	STP	ECN, NDD
One-click Execution	Yes	Yes	Yes
Requotes	Possible	Possible	Uncommon
Slippage	Possible during high volatility	Possible during high volatility	Less likely with ECN/NDD execution
Market Gaps	Possible	Possible	Possible
Commissions per lot	Variable (depends on account type)	No commission on most accounts	Variable (ECN accounts only)
Swap Rates	Yes	Yes	Yes
Swap Free Accounts	Islamic Accounts available	Islamic Accounts available	Yes
Trading Platforms	MetaTrader 4 & 5	MetaTrader 4 & 5	MetaTrader 4, cTrader
Assets	Forex, CFDs on stocks, indices, commodities	Forex, CFDs on stocks, indices, commodities	Forex, CFDs on stocks, indices, commodities, futures, spot metals
Copy Trading	HF Copy	No	FxPro Social
Trading Contests	Occasionally	Rarely	Occasionally
Negative Balance Protection	Yes	Yes	Yes
Guaranteed Execution	No	No	Not for all orders
Margin Call Level	75%	70%	80%
Stop Out Level	50%	50%	50%
Bonus Availability	Yes (subject to change)	No	No
Cashback Availability	Occasionally	No	No
Deposit & Withdrawal Fees	Variable (may apply)	Variable (may apply)	Variable (may apply)
Deposit & Withdrawal Times	Varies by method	Varies by method	Varies by method
Mobile App Trading	Yes (MetaTrader mobile app)	Yes (MetaTrader mobile app)	Yes (FxPro mobile app)
Free VPS Hosting	May be available for high-volume traders	No	May be available for high-volume traders
Customer Support	24/7 Live Chat, Email, Phone	24/7 Live Chat, Email, Phone	24/7 Live Chat, Email, Phone
Market Analysis	Daily research, educational resources	Daily research, educational resources	Daily research, educational resources
Inactivity Fees	May apply after extended period	No	May apply after extended period
Customer Reviews	Click Here	Click Here	Click Here
Start Now Button		Click Here	Click Here1

Pros & Cons

HF Markets, the successor to HotForex, lures traders with the promise of a Non-Dealing Desk (NDD) experience. But is it a haven for savvy negotiators, or a mirage shimmering with hidden costs? Let’s explore the key features to help you decide.

Pros:

Regulatory Oasis: Multiple regulators like CySEC and FSCA offer a degree of security, but always investigate how these regulations translate to your specific trading experience.
Familiar Territory: The industry-standard MT4/MT5 platforms provide a comfortable and well-equipped trading environment, but are you leveraging their full potential with advanced features like automated bots and backtesting?
Asset Arsenal: While the instrument selection may not be the most expansive, it offers enough for strategic diversification. However, ensure these assets align with your trading goals and research their liquidity before deploying capital.
NDD Mirage (Potential): The NDD model promises faster execution and fairer pricing, but investigate HF Markets’ execution statistics – are they efficient at routing your orders during market volatility?

Cons:

Zero Spreads: A Siren Song: Zero-spread accounts sound enticing, but don’t be fooled – commissions on these accounts can silently eat away at your profits. Evaluate the overall cost structure to see if it aligns with your trading volume and budget.
Educational Mirage: Compared to some competitors, HF Markets’ educational resources might leave you wanting. Explore third-party resources or consider a mentor to supplement your trading knowledge.
Mobile App Mirage: The lack of a dedicated mobile app (besides MetaTrader and HF Copy) might be a dealbreaker for some. Consider alternative brokers or adapt your trading style if on-the-go access is essential.
Liquidity Provider Labyrinth: The lack of clarity on how HF Markets selects liquidity providers can be unsettling. Research and compare spreads and execution quality offered by different brokers to find the best fit.
Standard Spreads Can Sting: Standard account spreads might be wider than some competitors’. Ensure the overall cost structure aligns with your trading goals before venturing in.

Who Should Seek Alternative Broker to HF Markets?

Fresh Recruits: The lack of comprehensive training leaves rookies vulnerable in the gladiatorial arena. You need a well-stocked barracks with robust educational materials to learn the art of trading combat.
Mobile Gladiators: The absence of a dedicated mobile app (besides MT4/HF Copy) might be a dealbreaker. You crave the flexibility to fight from anywhere – look for brokers with robust mobile apps if that’s your battle style.
Liquidity Provider Puzzle: The murky selection process for liquidity providers creates uncertainty. You prefer transparency – seek brokers who openly reveal their liquidity provider network.

The Final Verdict

HF Markets offers a familiar trading environment with decent asset options and potential cost benefits through zero-spread accounts. However, hidden costs, lack of educational resources, and limited mobile access require careful consideration. Before venturing in, investigate execution quality and transparency regarding liquidity providers. Remember, HF Markets is a tool – its effectiveness depends on your ability to navigate the complexities and find your own trading oasis.