HotForex is an award winning forex and commodities broker, providing trading services and facilities to both retail and institutional clients. Through its policy of providing the best possible trading conditions to its clients and allowing both scalpers and traders using expert advisors unrestricted access to its liquidity, HotForex has positioned itself as the forex broker of choice for traders worldwide.
|Regulated : CySEC, FSB, FSC, MiFID|
|Min. Deposit : 5 USD|
|Max. Leverage : 1:1000|
|Headquarters : Mauritius|
HotForex Regulation and Security
HotForex is a retail forex broker offering attractive trading conditions for a wide range of instruments, including Forex, Spot Metals, and CFDs on commodities, indices, and popular stocks such as Google, Apple, and Facebook.
HotForex is a trademark of a group of companies operating in various jurisdictions. The most reliable is HF Markets (Europe) Ltd., a Cyprus Investment Firm (CIF), registered in the European Union and licensed by the Cyprus Securities and Exchange Commission (CySEC).
The broker is also licensed by the UK Financial Conduct Authority (FCA), the South African regulator, and the Dubai Financial Conduct Authority (DFSA). The HF Markets Group also includes two offshore subsidiaries (HF Markets Ltd., registered in Mauritius and HF Markets (SV) Ltd., registered in Saint Vincent and the Grenadines).
Cyprus is currently one of the most attractive destinations for forex brokers, and probably the main reason for this is its well-balanced regulation. Strong regulation with high start-up capital requirements and low maximum leverage has reduced competition in the US and Japan, while light law affects confidence and security.
CySEC applies specific rules and requirements to Cypriot investment companies, which are not as strict as, for example, in the United States, but they provide a certain level of trust. Cyprus Investment Firms must own at least EUR 1,000,000 to prove their good financial standing. Besides, they must keep customer funds in segregated accounts separate from the company’s operating funds.
As an additional guarantee for customer funds, all companies regulated by CySEC are members of the Investor Compensation Fund, which can pay compensation of up to EUR 20,000 if the company fails to meet its obligations.
To open an account with HotForex, investors must invest a minimum of $ 5. This minimum initial amount is relatively small, but many Cypriot brokers require even less.
Spreads & Commissions
This broker offers both floating and fixed spreads. They are set relatively low at 1.8 pips for EUR / USD. In comparison, Easy-Forex offers fixed spreads of 1.8 pips on VIP accounts only.
Concerning floating spreads with HotForex, typical spreads on commission-free accounts are 1.2 pips on EUR / USD, which is the average. In our opinion, the conditions on a zero account are the most attractive: spreads are on average 0.1 pips in EUR / USD, and a commission of $ 4 per 1.00 lot traded, so basically, trading costs are about 0.9 pips, including commission. And you can open a zero account for as little as $ 100.
In comparison, the average variable spreads on Exness commission-free accounts are 0.9 pips on EUR / USD. ECN account holders are offered an average spreads on EUR / USD of 0.4 pips with a commission of $ 5 per standard lot.
The maximum leverage with HotForex reaches 1: 1000. In some jurisdictions, leverage ratios are limited at significantly lower levels (1:50 in the US, 1: 100 in Poland). This limitation of leverage is that the higher the leverage, the higher the risk of losses, which may even exceed the initial investment. However, many Cypriot brokers offer similar leverage levels to those provided by HotForex. (XM – up to 1: 888), or even better – Exness offers up to 1: 2000 leverage. Here you can check out a large number of FX brokers offering leverage equal to or greater than 1: 500.
This broker supports both the MetaQuotes platform: standard MetaTrader4 (MT4) and the latest MetaTrader 5. MT4 is a world-renowned trading terminal offering a full range of trading tools and resources: built-in technical indicators, an advanced graphic package, a wide range of Expert Advisors. (advisors) and extensive opportunities for backtesting them. Investors can download ready-made or create their advisors and let the program do all the work, without human emotions. MetaTrader 4 is available to HotForex clients in desktop, web, and mobile versions. A large number of brokers using MT4 can be found here.
Moreover, HotForex provides MT4 MultiTerminal, which offers a practical and convenient way to manage multiple accounts simultaneously from one interface.
On the other hand, MT5 was conceived as a multi-asset trading platform. Apart from forex, it makes it easier to trade stocks. The platform as a whole is an improved version of MT4, retaining most of its predecessor’s functions – great graphics, Expert Advisors, and much more.
Also, free VPS hosting is offered to both new and existing customers who deposit a minimum of $ 5000 and keep that amount for the coming months. VPS hosting allows you to fulfill orders 24 hours, five days a week.