FBS vs HFM (HotForex) - 2022 Comparison | Forex Malaysia
AuthorBy Björn Michels
Updated: August 22, 2022

Trading with a reputable online broker is a crucial factor for success in the international markets. At Forex Malaysia, we help you find the broker that suits your trading needs.

Each year we spend thousands of hours testing brokers by opening accounts, testing their platforms, and rating them according to a set of over 200 metrics. We deposit real money with the brokers to ensure that the products and user experience they advertise are consistent with reality.

We have found that the best way for traders to choose a broker is to compare brokers side-by-side. The comparison tool below allows you to compare two brokers based on their ratings and features.

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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
1110.503.52/ 5 USD 1CySEC Regulated BrokersASIC BrokersFinancial Services Conduct AuthorityInternational Financial Services CommissionSTP, ECN/DMACryptocurrencies, Energies, Stock CFDs, Forex, Indices, Metals37100
  • Tight spreads
  • Low minimum deposit
  • Excellent education
  • Excellent market analysis
  • Limited range of assets
  • Extreme leverage
Read Review 111003/ 5 111104/ 5 1110.503.5/ 5 111115/ 5 111104/ 5 111003/ 5 110.5002.5/ 5 76%3000:10.70 pips Cent, Crypto, ECN, Micro, Standard, Ultra, Zero Spread MT4, MT5Visa, Bank Transfer, Skrill, Neteller, SticPay, PerfectMoney6 USD / lot - ECN Account
11110.54.00/ 5 USD 5CySEC Regulated BrokersFCA Regulated BrokersFinancial Services Conduct AuthorityDubai Financial Services AuthorityFinancial Services CommissionThe Seychelles Financial Services AuthoritySTPBonds, Commodities, Cryptocurrencies, Energies, Stock CFDs, ETFs, Forex, Indices, Metals, Stock DMAs5319
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
  • Limited base currencies
Read Review 111104/ 5 11110.54.5/ 5 111003/ 5 111104/ 5 111115/ 5 1110.503.5/ 5 11110.54.5/ 5 72.90%1000:10 pips Auto, HFCopy, Islamic, Micro, Premium, Premium Pro, Zero MT4, MT5Bank Transfer, Visa, Mastercard, Skrill6 USD / lot - Zero Account

How do HFM (HotForex) and FBS stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

FBS

HFM (HotForex)

At Forex Malaysia, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare HFM (HotForex) and FBS, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does HFM (HotForex) or FBS have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that HFM (HotForex) holds one Tier 1 and two Tier 2 licences, and FBS holds one Tier 1 and one Tier 2 licences.

 

Can I trust HFM (HotForex)?

Yes as HFM (HotForex) was founded in 2010 and is regulated by CySEC, DFSA, FCA, FSC, FSCA and FSA-Seychelles.

 

Can I trust FBS?

Yes as FBS was founded in 2009 and is regulated by ASIC, CySEC, FSCA and IFSC.

 

Based on these findings, HFM (HotForex) earned a higher trust rating than FBS.

Does HFM (HotForex) or FBS have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that FBS and HFM (HotForex) have the same trading costs. 

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Commission
FBS
111104/ 5
EUR, USD
0.80 pips
USD 10
0.70 pips
1.20 pips
1.30 pips
USD 0
HFM (HotForex)
11110.54.5/ 5
EUR, USD, ZAR
1.00 pips
USD 10
0.10 pips
0.50 pips
0.30 pips
USD 0

 

Does HFM (HotForex) or FBS offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, FBS offers support for MT4 and MT5 and HFM (HotForex) offers support for MT4 and MT5. 

Do the brokers offer copy trading?

Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case both FBS and HFM (HotForex) offer copy trading.

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Broker
Platform Choice
Copy Trading
Platforms
FBS
1110.503.5/ 5

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that HFM (HotForex) offers a greater range and depth of instruments to trade than FBS. HFM (HotForex) offers 53 Forex pairs to trade and FBS offers 37 Forex pairs to trade.

And what about Cryptocurrencies?

In this case, FBS offers 100 cryptocurrencies while HFM (HotForex) offers 19 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with FBS.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that neither FBS nor HFM (HotForex) charges a withdrawal fee. Overall, FBS has better deposit and withdrawal processes than HFM (HotForex). 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

HFM (HotForex) has better educational support than FBS. Both FBS and HFM (HotForex) offer educational support for more experienced traders.

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Broker
Beginner Course
Advanced Course
FBS

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that HFM (HotForex) offers better research analysis than FBS and that both FBS and HFM (HotForex) offer frequent webinars.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS
FBS
HFM (HotForex)

 

Our overall Verdict on HFM (HotForex)

HFM (formerly known as Hotforex) is a well-known international broker, but its unique focus on the Malaysian market is undeniable. It has local customer support available in Malay and allows free deposits in MYR from major Malaysian banks.

Hotforex offers three standard accounts and one specialised copy trading account, but the standout is the Micro Account, with a 50 MYR minimum deposit and decent trading fees starting at 1 pip spreads on the EUR/USD. We were also pleased to find that HFM has recently reintroduced cryptocurrency trading, no doubt because of the popularity of the asset. This is alongside an excellent range of trading assets, including over 950 other international stocks.

HFM supports the MT4 and MT5 platforms in addition to its own mobile HF App, allowing clients to trade from charts and make deposits and withdrawals. It also has several excellent trading tools to assist traders. Unfortunately, access to tools such as Autochartist, which other brokers offer as a free service, requires an account balance of 100 USD – well above the required minimum deposit.

Our overall Verdict on FBS

FBS is a well-regulated international broker with a wide range of accounts, including a dedicated crypto account and a low-cost entry-level account, over 100 cryptocurrency pairs, and an easy-to-use mobile trading app. However, Malaysian traders should be aware that even though FBS is regulated by some top-tier authorities, they will be onboarded through FBS’ Belize-based entity, which provides less regulatory oversight. 

Other drawbacks are the high trading costs on its Micro, Crypto, and Zero accounts, and the high withdrawal fees. Beginners should also be wary of the high leverage available on some FBS accounts, without proper risk management high leverage can quickly wipe out smaller accounts. Otherwise, FBS provides a welcoming environment for beginner traders, with an excellent selection of educational and market analysis materials, and 24/7 customer support.

Which broker has the highest overall rating?

HFM (HotForex) has an overall rating of 4.00 and FBS has an overall rating of 3.52. For more detail please read our reviews of HFM (HotForex) and FBS.

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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