Is HYCM 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 HYCM try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether HYCM 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 HYCM
HYCM company is a division of Henyep Group. It has been trading on the Forex market for over 40 years. The broker has earned 15 awards since it commenced trading. Among these awards, broker has won the Best Forex Broker Award in 2019 and Best Mobile Trading Platform by World Finance in 2017. The company provides services to both private and institutional traders. It offers a wide selection of trading tools allowing traders to trade currency, precious metals, securities, cryptocurrency, etc.
| 💰 Account currency: | EUR, USD, GBP, RUB, CAD, AED |
|---|---|
| 🚀 Minimum deposit: | $100 |
| ⚖️ Leverage: | 1:500 |
| 💱 Spread: | From 0.1 pips |
| 🔧 Instruments: | Forex, indices, metals, oil, gas, commodity markets, securities, cryptocurrency |
| 💹 Margin Call / Stop Out: | 100% / 20% |
Pros and cons of HYCM
👍 Advantages of trading with HYCM:
•extensive experience and reliability - the company has been operating for over 40 years;
•excellent trading conditions;
•good liquidity;
•fast execution of orders;
•over 300 trading instruments;
•5 types of investments;
•spreads from 0.1 pips;
•multilingual support in 14 languages;
•customer service in popular apps: Skype, Viber, Telegram, WhatsApp and Facebook;
•convenient mobile platform, which is one of the best;
•protection against negative balance.
👎 Disadvantages of HYCM:
•customer service does not work on weekends;
•inconvenient for scalping;
•few opportunities for passive trading;
•there is no cent account.
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.
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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 HYCM Regulated? Broker’s license
Security (Protection for Investors)
Information
HYCM is regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Dubai Financial Services Authority (DFSA) and the Cayman Islands Monetary Authority (CIMA).
HYCM carries out financial activities with its Regulations and with the requirements of the regulators. This provides the company’s customers with clearly defined rights and obligations, and also guarantees the safety of monetary assets.
👍 Advantages
- Customer deposits are kept separately from the company's funds: they are not available for the use by the broker
- Protection against negative balance
- Disputes are resolved by involving an independent person
- If the broker is unable to provide additional financial services as a result of circumstances, its clients will receive compensation
👎 Disadvantages
- Regulators do not consider claims of private traders trading insignificant amounts
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 HYCM, which you can see below.
HY Markets has been checked by our experts for the existence of trading and non-trading commissions. The company’s spread was considered as a trading commission, and additional fees for withdrawing funds were considered as a non-trading commission category.
| Account type | Spread (minimum value) | Withdrawal commission |
| Fixed | From $18 | No |
| Classic | From $12 | No |
| Raw | From $1 | Yes |
Brokers that are similar to HYCM
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 HYCM conditions with its closest competitors.
Comparison of HYCM with other Brokers
| HYCM | RoboForex | Pocket Option | Exness | Eightcap | FreshForex | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, HYCM Prime Trader, HYCM Mobile |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT4, MobileTrading |
Min deposit |
$100 |
$10 |
$5 |
$10 |
$100 |
No |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.1 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 |
STP |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
No deposit bonus |
No |
No |
No |
No |
No |
$30 |
Cent accounts |
No |
Yes |
No |
No |
No |
Yes |
HYCM is a broker for those who value the variety of trading instruments and prompt support. The company is a suitable broker for both beginner and experienced traders who can work on both PCs and mobile devices.
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.
Eightcap has favorable working conditions due to a large choice of instruments, tight spreads, high leverage, and no withdrawal fees. Integration with popular trading platforms and basic deposit/withdrawal options greatly facilitates work with the broker and reduces the entry threshold. In addition to comfortable conditions and low financial costs, traders get free educational materials and special services for technical analysis. Some solutions, like Capitalise.ai, have no constructive counterparts. A relative disadvantage is the absence of opportunities for passive income. Also, the broker works only with CFDs, so other groups of trading instruments are not available.
FreshForex is a reliable Forex broker providing a standard set of trading tools. The company is a good option for traders of all levels, from beginner to professional traders. It is mid-range in terms of size and number of registered traders and they are reliable based on our research and analysis.
Conclusions
HYCM is a quite reliable broker for trading. HYCM 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.