Is HFM Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with HFM try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether HFM is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker HFM
HFM is a broker owned by the HF Markets Group, offers a wide variety of account types, and has the widest selection of trading assets and high-quality software. HFM also has favorable trading conditions and instant execution of orders. Plus, a solid list of tools and services allow everyone to choose the best option. The broker's reliability is confirmed by the license of several regulators. The company's work experience in the financial, brokerage and other services market is over 10 years. Within that time, HFM has received 35 prestigious awards. For trading, MetaTrader 4 and MetaTrader 5 trading terminals are used.
| 💰 Account currency: | USD, EUR, NGN, JPY |
|---|---|
| 🚀 Minimum deposit: | USD 0 |
| ⚖️ Leverage: | Up to 1:2000 |
| 💱 Spread: | from 0 pip |
| 🔧 Instruments: | Forex, Metals, Energies, Stocks, Indices, Bonds, Commodities, ETFs, Cryptocurrencies |
| 💹 Margin Call / Stop Out: | 50%/20% |
Pros and cons of HFM
👍 Advantages of trading with HFM:
•favorable trading conditions and low spreads - from 0 pips;
•controlled by several regulators;
•no commissions for account replenishment and bank transfers.
👎 Disadvantages of HFM:
•Withdrawal terms do not always correspond to those indicated;
•Few account currencies, which is why some clients have to pay for double conversion;
•The choice of electronic payment systems for replenishment/ and withdrawal is rather modest;
•Registration is quite easy, but while it is in progress, you cannot learn the conditions on other types of accounts;
•Customer support is closed on weekends.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
-
In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is HFM Regulated? Broker’s license
Security (Protection for Investors) Information
HFM is owned by the HF Markets Group and is regulated by several oversight agencies. HFM has the appropriate licenses for all services provided. HFM has also been in the market for over 10 years, which generates customer confidence. If interested, you can read more about HFM security here.
👍 Advantages
- Availability of segregated accounts based on regulatory requirements
- Civil liability insurance program for up to 5 million euros
- Multiple regulator licenses
👎 Disadvantages
- It is unlikely that licenses from other jurisdictions will somehow be useful to traders in the event of a conflict of interest
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by HFM, which you can see below.
The Traders Union experts have reviewed HFM trading conditions for trading and non-trading commissions. HFM's spread was considered as a trading commission while its withdrawal fees were considered as a non-trading commission. These trading commissions are considered as being in the category of medium spreads. With HFM, there are no hidden fees.
| Account type | Spread (minimum value) | Withdrawal commission |
| Zero spread | From $0 | No |
| Cent | From $12 | No |
| Premium | From $12 | No |
| PRO | From $5 | No |
Brokers that are similar to HFM
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of HFM conditions with its closest competitors.
Comparison of HFM with other Brokers
| HFM | RoboForex | Pocket Option | Exness | AMarkets | InstaForex | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MobileTrading, MultiTerminal, MT5 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, AMarkets App |
MT4, MultiTerminal, MobileTrading, MT5, WebTrader |
Min deposit |
No |
$10 |
$5 |
$10 |
$100 |
$1 |
Leverage |
From 1:400 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
Yes |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
Yes |
No |
No |
No |
Yes |
The HFM broker focuses on traders from Europe. The company offers a variety of investment options and is suitable for both novice and professional traders.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
AMarkets is a broker that is more suitable for professional trading. Everything here is designed to accommodate trading with EAs and that is the broker’s strength. The weakness of the broker is that it won’t be easy for traders without experience to work here.
InstaForex is the best option for traders with any level of experience. For active professional traders, there is a large pool of non-standard technological solutions for more accurate analysis. For novice traders, there are comfortable starting conditions, such as a $1 minimum deposit under the regulation of FSC and a $200 minimum deposit with the broker regulated by CySEC. There are PAMM accounts and social trading for investors.
Conclusions
HFM is a quite reliable broker for trading. HFM operates on the license of a reliable jurisdiction and its operation is regularly monitored. However, the company does not offer the best trading conditions compared to competitors. You can choose this broker and not worry about the safety of your funds, but there are better options in terms of trading conditions.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.