HFM Review

Reputation & Trust - 9/10

HF Markets (SV) LTD, also known by its HFM trading name, is a legal entity because it was issued an operational license by the Saint Vincent Financial Services Authority (FSA).

The FSA in Saint Vincent is a foreign market regulator and it oversees HFM activities in Nigeria.

HFM also operates in other parts of the world where they have been granted operational licenses by the CMA Kenya, FSCA South Africa, and FCA United Kingdom.

HFM is safer than most brokers because they are licensed by the FCA UK which is the strictest regulatory body on the planet.

Account Types - 6.5/10

Yes, HFM provides you different account types to choose from but the ones that matter are unaffordable as they have a high minimum deposit. This is why we scored them a 6.5/10.

Cent Account (start with $5)

After practicing with the demo account, the HFM Cent Account allows you try trading live markets with real cash. But, the cent account has guardrails for beginners such that you can only trade small lot sizes.

Zero Spread Account (start with $25)

The Zero Spread Account charges zero spread on popular instruments but in return you pay commissions on every trade, so this account is suitable for professional traders who know how to use zero spread to their advantage.

Pro Account (start with $50)

HFM Pro Account is a beginner account that has a lower spread but also has a higher minimum deposit.

Pro Plus Account (start with $100)

The HFM Pro Plus Account is also for beginners and has an even lower spread, but this comes with a higher minimum deposit requirement.

Premium Account (start with $5)

The Premium Account is a beginner account with a low minimum deposit but higher spread.

InfinityX Account (start with $500)

HFM now offers unlimited leverage combined with very low spreads and no stop out level when you open the infinityx account.

Account/Wallet Currency

HFM has naira account currency, but recently we noticed you need to request for it to be activated, as the default wallet currency is USD.

Payment Methods - 7/10

Although the HFM minimum deposit is just $5 USD this only applies to their entry-level account types. The accounts that actually matter to traders have a much higher minimum deposit.

HFM also falls short when it comes to the variety of payment methods traders can utilize. currently HFM only support local bank transfers, cards, and eWallets. We would have loved to see HFM offer more diverse local payment options like USSD, naira online, etc.

HFM did well to keep their minimum withdrawal at just $5, and the withdrawal speed is instant for local banks but can take up to 2 weeks for card withdrawals.

Risk Management - 7/10

Leverage

HFM offers high risk leverage reaching as high as 1:2000 to everyone including beginners. While some may see this as a good thing, high leverage can actually encourage over-trading and lead to blowing up of trading accounts

Margin Call & Stop Out

HFM Margin Call will come when your Margin Level falls to 50% and you will be Stopped Out of all your trades when your Margin Level falls to 20%.

MyHF Wallet

MyHF Wallet is an online savings account/wallet, tied to your HF Markets profile.

Any time you make deposits, you can select your HF Wallet as the destination, then when it is time to trade you perform an internal transfer from your HF Wallet, to your trading account.

The HF Wallet helps you manage risk of drawdown because the funds in the wallet are not affected by ongoing trades.

It is only the funds you transfer from your HF Wallet to your trading account, that can be affected by ongoing trades.

Negative Balance Protection

HFM Nigeria offers Negative Balance Protection so that you dont lose more than you deposited.

Even if your HFM account balance goes into negative due to stop loss not being triggered etc., HFM will refund the negative balance and make your account balance zero again.

Trading & Non-Trading Fees - 6/10

it is not that HFM does not have the capacity for low spreads, but the trading account types that allow low spreads have a high minimum deposit.

Spread

if you want lower spread you must open the HFM account types that have a high minimum deposit.

Accounts like the Pro, Pro-Plus, Zero & Infinity have a higher minimum deposit but a much lower spreads than the Premium & Cent accounts.

While the Premium & Cent accounts have spreads from 1.4 pips their minimum deposit is just $5.

In contrast, while the Pro account has spreads from 0.6 pips, its minimum deposit is $50.

The pro-Plus also has spreads from 0.2 pips but its minimum deposit is $100.

Commission

HFM does not have commission-free accounts. All HFM accounts charge commissions on specific instruments.

So, what HFM instruments require commission payment?

• Forex: A Commission is $3 per side is charged only when using the Zero Account.
• Stocks: A 0.1% commission charge on all account types
• ETFs: A $0.1 commission per share per round turn is charged on all account types.

Swaps

In Nigeria, all HFM Accounts have been configured not to charge or receive any overnight swaps.

Inactivity Fee

HFM charges a $5 or N7,500 monthly inactivity fee after 90 days of inactivity and after 1 year of inactivity, the charge increases to $10 monthly.

Range of Markets - 5/10

At first glance it would seem like HFM offers a variety of asset classes but a closer look reveals some disappointing discoveries.

Energy

Noticeably absent from their energy listing was Natural Gas, which is one of the most profitable instruments in the market. The only energy they offer is Oil.

Metals

For metals, although HFM offers gold & silver CFDs that is all, they do not offer other metals like palladium, etc.

Forex

HFM offers about 50 forex pairs covering majors, minors & exotics; which is good.

Indices

HFM offers just 8 indices which is small when compared to what is obtainable outside. However, the indices they offer are the popular ones like NAS100, US30, SP500, GER40, etc.

ETFs

HFM is one of the few brokers that offer ETFs, and yes it is a big deal because ETFs are a cheap way of trading instruments that would have been expensive to trade as direct CFDs.

HFM offers about 12 ETFs but none of the ETFs gives you exposure to cryptocurrency or gold.

Stocks

Only 88 stocks are available for trading which is lower than what many rival brokers offer.

Bonds

You get access to euro and us bond markets which is okay.

Commodities

Only 5 commodities are listed in HFMs commodity catalogue and these comprise coffee, cotton, copper, sugar and cocoa. Noticeably absent from the list is livestock.

Trading Software & Apps - 6/10

In trading today, the most advanced trading software is TradingView, followed by cTrader; and HFM does not offer these platforms.

instead, HFM offers the MT4 & MT5 platforms and also offers their custom HFM mobile app to traders.

However, here is the problem: the HFM mobile app lacks sophistication and advanced tools making it just an app for casual trading.

While MetaTrader is also popular, it has long been outclassed by rivals TradingView & cTrader.

Customer Support - 7/10

HFM provides 24/5 support meaning the support is available on weekdays only. If you need assistance during the weekend you can call your Personal Account Manager on phone.

During weekdays you can contact HFM via live chat, email.

Final Score - 6.6/10

HFM is a good forex broker for beginners but if you are seeking more depth/sophistication, you might want to consider other brokers.