HotForex Broker Review

Is HotForex Safe?

Founded in 2009 and headquartered in Cyprus, HotForex is the brand name of HF Markets Group.   Entities within the group are regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Dubai Financial Services Authority (DFSA), the Financial Sector Conduct Authority of South Africa (FSCA), and the Financial Services Authority of Seychelles.  

HotForex in Malaysia is operated by HF Markets (SV), which is registered as an International Business Company in St. Vincent & the Grenadines.  However, Malaysian traders should be aware that FXPRIMUS is not currently licenced by the Securities Commission of Malaysia.  See below for Hotforex listed companies:

• HF Markets (Europe) Ltd – authorized by CySEC (Cyprus) registration no. 183/12
• HF Markets (UK) Limited – authorized by FCA (UK) registration no. 801701
• HF Markets (DIFC) Ltd – authorized DFSA (Dubai) registration no. F004885
• HF Markets (SV) Ltd – authorized by FSA (St. Vincent and the Grenadines) registration no. 22747 IBC 2015
• HF Markets SA (PTY) Ltd – authorized by FSCA (South Africa) registration no.  46632
• HF Markets (Seychelles) Ltd – authorized by FSA (Seychelles) registration no. SD015

HF Markets has won awards for the Decade of Excellence Forex Brokerage – Asia 2020 (Global Banking & Finance Review), Top 100 Companies 2020 (World Finance Magazine), and Most Transparent Broker 2020 (The European – Global Banking & Finance Review Awards). HF Markets has also won awards for Best Client Services – Global 2020 (Capital Finance International Magazine) and Best Trading Experience South East Asia 2020 (International finance Awards); HotForex also won the Best Forex Trading Platform of the Year (Banks & Other Financial Institutions Awards), Best Forex Educational Resources – Global (Global Forex Awards) and Most Trusted Forex Broker – Global (Global Forex Awards).

Lastly, all client funds are held in segregated accounts with top-tier banks and all clients are afforded Negative Balance Protection.   On this basis, we deem Hotforex to be a trustworthy and safe broker.

Trading Conditions

An STP broker with multi-asset CFD trading, including HotForex offers several dealing desk accounts with no commission and a single market execution account that carries a commission per lot. Traders have a choice of six account types, with tight spreads averaging at 0.1 pips on the EUR/USD.  Leverage is up to 1000:1 depending on the account type, and the minimum deposits start at 5 USD.  Furthermore, Hotforex allows all trading strategies, including scalping, hedging, and copy-trading.   Note that accounts can be denominated in USD or EUR.  All accounts are available as Islamic accounts.  

Account Types

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Micro Account:  A good entry-level account for beginner traders, with leverage of up to 1000:1 and a minimum deposit of 5 USD.  The variable spreads start at 1 pips on major pairs, which is tight for an account with such a low minimum deposit.  The only downside to this account is that a trader can only hold open 150 simultaneous orders and the lots per trade are limited.

Premium Account:  The minimum deposit on this commission-free account is 100 USD, and leverage is up to 1:500.  A maximum order of 300 open positions is allowed, and spreads start at 1 pips on the EUR/USD.  The maximum total trade size is 60 standard lots per position, and Stop out levels are at 50%.

ZERO Spread:  This is a market execution account with spreads of 0 pips.  Note that zero spreads are only available on major currency pairs, and exotic pairs still carry wider spreads. As with most market execution accounts, you will be charged a commission – in this case, the charge is 3 USD per lot (6 USD total round turn) on majors and 4 USD per lot (8 USD total round turn) on minors and exotics. 

As with the Premium account, the Zero account allows traders to keep 60 trade standard lots per position, but with reduced leverage of 1:200.  Zero accounts are good for beginner traders but require an increased minimum deposit of 200 USD.

Auto Account: The commission-free HotForex Auto Account is for beginner traders who want to subscribe to Trading Signals created by the MQL5 Community.  These can be installed directly into the HotForex MT4 trading terminal. Traders can automatically copy any Signal Provider’s signals, but paid Signals are subject to a one-month performance evaluation period.   The minimum deposit on the Auto Account is 200 USD, leverage is up to 1:500, and spreads start at 1 pip.

PAMM Accounts: The PAMM Accounts are managed accounts whereby you split your profits with a fund manager who trades on your behalf. As a Hotforex PAMM Manager, you have the choice of opening a Premium or a Premium Plus Account.  Trading instruments on both account options include Forex, Metals, Oil, and Indices.  Maximum leverage is up to 300:1, the minimum deposit is 250 USD, and the minimum trade size is 0.01 lots.  The major difference between the two PAMM accounts is that spreads on the Premium Account start at 1.1 pips and start at 0.3 pips on the PAMM Premium Plus Account.  Furthermore, a commission of 5 USD/lot per side (or 10 USD round turn) is charged on the Premium Plus Account. 

HFcopy Account: The HFcopy Account is available to both Strategy Providers (SPs) and Followers who have joined HFcopy. SPs can open an HFcopy Account to build their inventory of Followers and trade in exchange for a Performance Fee, as high as 50%.  Available on MT4 spreads start at 1 pip, and leverage is up to 400:1.  Trading instruments offered on this account include Forex, Indices Spot, Bitcoin, and Gold.  The minimum deposit is 500 USD for SPs and 100 USD for Followers.  Accounts are only denominated in USD.

Demo account

Hotforex offers an unlimited demo account, allowing prospective traders to test trading strategies under real market conditions.  Demo accounts are loaded with 100,000 USD in virtual currency and have access to both the MT$ and MT5 platforms. 

Spreads and Commissions

Spreads on all accounts are variable, with most starting at 1 pip on the EUR/USD. The one exception is the Zero Spread account, which offers raw spreads starting at 0 pips but charges a 6 USD/round turn commission on major pairs.  PAMM Premium Plus account-holders are also charged a 10 USD/round turn commission, with spreads starting at 0.3 pips.   

Deposits and Withdrawals

HotForex accepts all major credit and debit cards, bank wire transfers, and online money services, including Skrill, Neteller, and FasaPay. Malaysian traders can make deposits and withdrawals via local Malaysian Banks like CIMB and Maybank using online banking.

Importantly, HotForex charges no fees for deposits or withdrawals, and all withdrawals are processed within 24 hours, though it may take longer for funds to be transferred.

Like all Forex brokers, traders need to submit proper ID before a withdrawal application. One can also request a proprietary debit card that can be used for direct purchases or withdrawals.

HotForex Bonuses and Promotions

HotForex is constantly running multiple bonuses, trading contests, and promotions for Malaysian traders. For all the current HotForex Bonus information click here.

HotForex Trading Platforms

HotForex supports MetaTrader 4 (MT4) across all account types and MetaTrader 5 (MT5) on the Micro Account and Premium Account.

The MT5 desktop and WebTerminal at Hotforex offer 21 different time-frames, analysis tools, advantage chart analysis with detailed overlays, pre-programmed analytical tools, and over 80 built-in indicators and tools. Advanced traders can install Expert Advisors to enable programmatic trading.

Both MT4 and MT5 are available as downloads, browser-based, and on iOS and Android devices. Mobile access is 24/7, and the mobile apps employ the latest SSL encryption technology for security.

HotForex Trading Tools

Hotforex offers several powerful trading tools to clients with live accounts. These include free VPS hosting, free access to Autochartist, and a collection of Premium Trader Tools such as live sentiment and correlation tracking, tick charts, an MT5 indicator package, a customizable news feed, and a sophisticated alarm manager capable of carrying out multiple automated actions.

HotForex For Beginners

Award-winning customer service and a client-focused approach to business mean that beginner traders at HotForex can rely on excellent support.  Furthermore, Hotforex offers world-class educational and market analysis materials that are in-depth and well-structured to benefit traders of all experience levels.  Note that while the website is fully translated into Malay, some market analysis and educational materials are only available in English.

Educational Material

Traders who open a demo or live account will get access to the HotForex e-Course.  This course is well-structured and includes the basics of Forex theory and Forex trading, reading and interpreting charts, trading strategies, trading psychology, and technical analysis.

Video tutorials are available without registration, and these cover introductory concepts, Metatrader tutorials, trading strategies, and lessons in economic theory.

Webinars on current events, advanced trading strategy, and risk and money management are run every few days. These webinars do not require an account at HotForex, but you will need to register to participate.

Analysis Material

HotForex devotes an entire section of its website to market analysis and trading tools; these include daily market news, trade analysis, and outlooks. Trading calculators and economic calendars are also available for reference outside of a trading platform.

This dedication to analysis earned HotForex the Best Forex News & Analysis Provider 2016 award (Mena Dubai Fx Show).

Customer Support

Support is available 24/5 in over 27 languages (including Malay) via email, live chat, and telephone.  Toll-free local phone numbers and local email addresses give clients direct free access to quality customer service in their language.  Unfortunately, local telephone support is not available in Malaysia.

HotForex’s goal is to provide the best customer service to clients by maintaining a client-focused culture. This approach to supporting clients won them the Best Global Forex Trading Education Provider 2018 (Global Brands Magazine).

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the HotForex offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker, and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

HotForex Risk Statement

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. HotForex would like you to know that: Trading Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.

Conclusion

An STP offering multi-asset trading, Hotforex is a good broker for both beginner and experienced traders alike. With commission-free and market execution accounts, support for both MetaTrader platforms, copy trading, excellent customer support, world-class educational materials, and tight spreads, it is hard to find anything to fault.  All standard Forex accounts are also available as Islamic Swap-Free accounts.