9 Trading Features To Review Must About HYCM Broker

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HYCM Forex Broker Review

Best Forex Broker Europe 2020

Winner of numerous awards include Best Forex Broker Europe 2020, HYCM is one of the oldest Forex brokers in the global FX industry. With over 40 years of operational history and under the leadership of a visionary management team, Henyep has become synonymous with professional services.

  • FCA & CySEC Regulated
  • Over 40 years of experience
  • Metatrader Trading Platform
  • Spreads from 1.5 pips
  • Start trading with $100

Traders Rating: 98% 8 votes

Best Forex Broker Europe 2020, with over 40 years of operational history.

HYCM Forex Broker Review

HYCM is a division of the Henyep Capital Markets Group, a leading global corporation with a diversified portfolio of businesses that span across three continents. With over 40 years of operational history and under the leadership of a visionary management team, Henyep has become synonymous with professional and quality services.

More than 40 years of Experience

HYCM, FX & CFD trading division of the Henyep Group, benefits from experience and resources acquired through 40 years of operation in the financial markets. Winner of numerous awards include Best Forex Broker Europe 2020, Henyep is one of the oldest Forex brokers in the global FX industry.

Trade more than 100 Forex & CFD products

HYCM offer more than 100 Forex & CFD and products online, including 50 Currency Pairs, Gold, Silver, Bitcoin, Litecoin and Ethereum CFD trading on Metatrader trading platform.

Minimum deposit of $100 can be made by Wire Transfer, Credit Card, Neteller and other methods.

CLICK HERE TO LEARN MORE

Multiple Award Winning Broker

HYCM Winner of numerous awards include Best Forex Broker Europe 2020 and Best Retail Platform from a several financial publications.

HYCM Metatrader Trading Platform

MetaTrader 4 Forex & CFD trading platform is the leading, world renowned trading platform. Henyep complement MT4 trading platform with 24 hour customer service and dealing support. Customer can communicate with Henyep team via phone, email and chat. HYCM Metatrader technology driven back-office systems let you access your open positions, equity and P&L online 24 hours a day.

HYCM Metatrader include Advanced charting and technical analysis tools. Benefit from award-winning tools which allow for detailed analysis including Trading Central.

CLICK HERE TO START TRADING

EU & UK Regulated Forex Broker – FCA & CySEC

HYCM is a division of the Henyep Capital Markets Group, is authorised and regulated by the Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). This provides our clients with security in their trading, and segregated client funds. FCA LICENSE NO.: 186171 CySEC: 259/14

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Benefits of FCA membership for HYCM client

FOREX EU news, opinions, analyses, research, quotes, charts, or other information on this website is provided as general market commentary, and does not constitute investment advice. FOREX EU will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

FXTM Review

Review

FXTM, also known as “ForexTime”, is a well-established Forex / CFD brokerage house which has been in business ever since 2020. FXTM has grown rapidly in recent years and has a corporate structure composed of three entities which match its three bases of operations: the U.K., Cyprus, and Mauritius. FXTM allows its clients to trade Forex currency pairs and crosses, including some exotics, the precious metals gold and silver, crude oil and natural gas. Traders can also trade major equity indices, cryptocurrencies*, and CFDs** on major American stocks and shares. FXTM also enables direct trading in stocks, not wrapped in CFDs, where the trader takes direct legal ownership of the shares when buying them, just like a traditional stockbroker.

Regulation and Security

This should not constitute as advertisement in the territory of Belgium, France and Netherlands

FXTM enjoys an extremely high and very strong level of regulation in several jurisdictions. It is based in three different countries, with three different corporate branches to match.

ForexTime Limited (www.forextime.com/eu) is regulated by the Cyprus Securities and Exchange Commission with CIF license number 185/12, licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614. The company is also registered with the Financial Conduct Authority of the UK with number 600475. Exinity Limited (www.forextime.com) is regulated by the Financial Services Commission (FSC) of the Republic of Mauritius with an Investment Dealer License bearing license number C113012295. Forextime UK Limited (www.forextime.com/uk) is authorised and regulated by the Financial Conduct Authority, firm reference number 777911.

This multi-jurisdictional setup allows FXTM to differentiate its offering depending upon where its traders are located. It is worth mentioning that acquiring regulation is not an easy feat for any Forex broker, so the mere fact that ForexTime has acquired regulation in several jurisdictions is extremely admirable.

FXTM is formally regulated in the United Kingdom, Cyprus, South Africa, and Mauritius. In the United Kingdom, ForexTime UK Limited is authorized by the Financial Conduct Authority to provide regulated products and services under license number 777911.

In Cyprus, ForexTime Limited is licensed by the Cyprus Securities and Exchange Commission under license number 185/12.

In South Africa, ForexTime Limited is licensed by the Financial Sector Conduct Authority of South Africa under FSP number 46614.

In Mauritius, Exinity Limited is licensed by the Financial Services Commission with a category 1 global business license and as an SEC-2.1B investment dealer (full service excluding underwriting) under license number C113012295. Exinity Limited is also a member of the Financial Commission, an international dispute resolution body serving the financial services industry.

FXTM’s regulation in both the United Kingdom and Cyprus provides its clients depositing in FXTM’s branch in either jurisdiction with a degree of investor protection. The U.K.’s Financial Conduct Authority has a Financial Services Compensation Scheme which can protect deposits of up to £85,000. Cyprus’ CySEC maintains an Investor Compensation Fund which is empowered to award depositors who lose their account deposit due to the failure of a regulated firm an amount up to €20,000.

FXTM has been in operation as a dedicated Forex / CFD brokerage house since 2020, giving it a reasonably long track record. Applying the “lindy effect” rule, the longer time a broker has successfully been in business, the better the reputation that broker can be assumed to have. This means that FXTM has a meaningful track record and an established reputation of safety as a brand which it needs and wants to protect, to ensure it remains in good standing in such advanced and highly regulated financial services centers such as the U.K.

FXTM’s story of steady expansion adds to their level of credibility. After its initial establishment in Cyprus in 2020, FXTM grew and acquired its South African license in 2020, and its U.K. license in 2020. FXTM’s client base globally has grown quite steadily.

As with all Forex / CFD brokerages regulated in member states of the European Union like Cyprus or the United Kingdom, clients of FXTM operating through FXTM in the U.K. or Cyprus are automatically granted negative balance protection, but this is NOT offered to all clients globally. This means that it is impossible for any client not using the Mauritius branch to lose more than the amount they have deposited with FXTM. The “tail risk” of an unusual, extreme market movement, which can be exponentially raised by excessive leverage, is borne fully and voluntarily by FXTM in other cases.

The total fees charged by any brokerage should always be one of the very top considerations of someone looking for the most suitable Forex / CFD broker. It ranks right up there with security / safety of funds deposited. Each cost should be examined rigorously. It can be helpful to divide all fees and costs into two categories: trading fees, such as spreads, commissions, and overnight financing; and miscellaneous fees, such as periodic charges for account inactivity, or fees or commissions charged by the brokerage itself against account deposits or withdrawals. The trading fee element is the much more important side, so it makes sense to begin a fee analysis here.

Looking at trading fees first, we will start with spreads and commissions, which are worth taking together as a comprehensive “round trip” cost of opening and closing one trade. As FXTM offer a few different account types which charge slightly different fees, we will judge the trading fees of its most common account type, the Standard Account.

The average round trip cost of trading the benchmark EUR/USD Forex currency pair is 2 pips with the company’s Standard Account. This is slightly on the high side for the industry. The Cent Account, FXTM’s account with the lowest minimum deposit (only $10) averages slightly higher at 2.2 pips. However, this falls to only 0.8 pips with one of the ECN-style accounts, which represents a very competitive rate considering the minimum deposit is only $500 for this account type.

The average round trip fees and costs for other CFD instruments offered such as commodities, individual stocks and equity indices are average for the industry.

Finally, FXTM’s offering of real share trading through its accounts based outside the European Union is not only a relatively unique service, its trading costs in this area are competitive and slightly lower than its direct competitors.

These levels of spreads and commissions are broadly competitive on the ECN side, especially for clients with relatively low deposit amounts. The minimum deposit required to open a “true” ECN account is only $500, so for traders depositing anything close to this sum, these fees are competitive. However, traders with considerably larger sums to deposit such as a few thousand dollars would find the trading fees average, but nothing special, at least for trading Forex and CFD products.

An often-overlooked element of the trading fee structure is overnight financing, which is typically a net charge applied to any trade open at 5 p.m. New York time. These fees are, at least hypothetically, calculated from intrabank tom/next intrabank fees, but retail brokerages usually give considerably less favorable rates. This can make swing or position trading expensive, particularly when a trader wants to be long of a currency with a relatively high interest rate and short of another currency with a relatively low (or even negative) interest rate. FXTM are totally transparent regarding their overnight financing rates, which is a sign of trustworthiness: frequently, brokers don’t publicize their existing rates, but they can always be found within the relevant trading platforms if you know where to look for them.

FXTM makes no claims about how their overnight financing / swap rates are derived. Many brokers claim they are based upon interbank tom/next rates, yet the rates offered always seem to be considerably less favorable to the client than the prevailing tom/next rates. Therefore, we are inclined to applaud FXTM for not making any such claims. A comparison of FXTM’s rates to the industry average at the time this FXTM review was written shows that FXTM’s rates are very competitive and slightly better than the average. Now here’s something truly unique about FXTM and their overnight financing / swap rates: some of their account types charge no swaps at all! The Cent Account and the Shares Account are completely swap-free, while swap is not paid in any other account that uses the MetaTrader 4 platform. While many brokers offer a swap-free Islamic Account option, it is usually offered only to Muslims, so this global swap-free option is both very rare and very appreciated. Overall, this means that FXTM is likely to be a good choice for traders planning to keep positions open longer than one or two days at a time.

A listing of FXTM’s overnight financing / swap rates applicable to Forex grabbed from their site at the time this review was written is shown below:

Another factor which makes us believe that FXTM has a commendable sensitivity towards the problem of traders being “bled” quietly by certain retail Forex CFD brokerages charging relatively high overnight financing rates, is that in 2020, they ran a limited period promotion where overnight financing would only be charged or paid over weekends, and not on weekday rollovers. This is impressive, and we never heard of another brokerage offering a similar promotion of this type.

Finally, we conclude the topic of fees by checking whether clients are charged any incidental fees by FXTM, regardless of whether a trade is made.

FXTM imposes a dormant account / account inactivity fee of $5 per month but an account must have initiated no trading activity for a period of at least six months before this fee will be imposed. This is good by the standards of the industry. FXTM also charges additional withdrawal fees against withdrawals made by credit cards or bank wire transfer. The exact charge depends upon the country of residence of the client making the withdrawal but is typically approximately $2 for a withdrawal by credit card and approximately €20 for a wire transfer. These fees are justifiable, but many retail Forex / CFD brokerages do not charge them, so it is not a competitive practice.

Our bottom line on fees: FXTM’s fees are competitive for traders making any amount of deposit to an ECN-style account type, but is especially good value at amounts close to the $500 minimum deposit.

What Can I Trade

Following safety of funds and regulatory oversight, plus fees of course, the major priority to think about when choosing a new Forex / CFD brokerage is what assets you can trade. Many newer traders will be looking to trade only one single asset class, such as Forex, or CFDs on individual stocks and shares, but more experienced traders will probably be looking for diversification, meaning a wide offering across Forex, commodities, stocks, etc.

FXTM offers the following instruments for trading:

Forex – more than 57 currency pairs and crosses, including exotic currencies, as listed below.

Metals – a category somewhere between Forex and commodities that deserves to stand on its own, in the opinion of many traders, so let’s treat it that way. FXTM offers trading in spot gold and spot silver. Gold is paired with the U.S. Dollar, the euro, and the British pound. Silver is paired with only the U.S. dollar and the euro.

Commodities – a narrow selection of commodities, with only energies offered: both types of crude oil and natural gas:

Equity Indices – a selection of 11 major equity indices, offered from approximately 10 developed nations (no emerging markets are included within the selection):

Cryptocurrencies –4 major cryptos are offered paired with the USD. At the time of this FXTM review, the only cryptocurrency not offered from the top 5 largest cryptocurrencies is Bitcoin Cash:

U.S. Shares as CFDs – a wide selection of 120 major U.S. shares may be traded as certificates for deposit:

U.S. Shares (direct ownership) – a selection of 10 major U.S. shares which may be bought and sold with full legal ownership and no CFD wrapping.

Our conclusion regarding FXTM’s offering of tradable assets is quite favorable, with a range of asset classes offered that should satisfy traders looking to trade Forex, major equity CFDs, and individual leading U.S. equities. We think that the offering is sufficient for traders who are not particularly interested in diversification across a wide range of commodities or emerging market equity indices.

Account Types

A choice of six different account types is offered.

Accounts are divided into two types: Standard Accounts and ECN Accounts, which operate an ECN-execution model. The difference is essentially between execution costs restricted to variable spreads subject to a minimum amount, and variable spreads subject to no minimum plus commission (ECN). Both execution models have pros and cons, and each may better suit a different type of trader.

The Standard Account with the lowest minimum deposit is the Cent Account, which requires a deposit of only $10 to open. The account may be denominated in USD, EUR, GBP, or Nigerian Naira for customers residing in Nigeria. Variable spreads are charged and are subject to the highest minimums imposed by FXTM, making a typical “round trip” spread on the benchmark EUR/USD currency pair as high as 2.2 pips. However, overnight swaps are not charged or paid in this account type. This account offers 25 major and minor Forex currency pairs and 2 metals for trading. The maximum position size per trade is 1 lot (typically equivalent to $100,000 in nominal value) although of course where account size is low, maximum leverage (more on leverage later) will play a big role in defining a lower practical maximum. The only trading platform which may be used with this account type is the MetaTrader 4 platform.

The next Standard Account is, a little confusingly, called the Standard Account. It is available in the same base currencies as the Cent Account, but a minimum deposit of $100 is required. Variable spreads are charged and are subject to somewhat lower minimums, making a typical round trip spread on the benchmark EUR/USD currency pair approximately 2 pips. Customers have a choice whether to use the MetaTrader 4 or MetaTrader 5 trading platform with this account type. If MetaTrader 4 is used, overnight swaps are not charged, but they are charged if MetaTrader 5 is used. This account offers the full range of Forex, metals, commodities, equity indices and equities as CFDs described earlier as FXTM’s offering – everything except U.S. shares not wrapped as CFDs. The maximum position size per trade is 30 lots (typically equivalent to $3 million in nominal value).

The last of the Standard Accounts offered is the Shares Account. It is available in the same base currencies as the other two Standard Account types and requires a minimum deposit of $100 to open. Only the MetaTrader 4 platform may be used with this account type. Over 120 U.S. shares can be traded wrapped as CFDs. A fixed leverage of 10 to 1 is offered. A maximum position size per trade of 10 lots is offered.

Now we will move on to the range of ECN Accounts offered by FXTM, which all offer (obviously) an ECN execution model. This execution model means that you will tend to pay a lower cost to execute trades, but that prices may gap wildly under extreme market conditions, especially when trading currency crosses with generally low liquidity. All ECN type accounts are available in the same base currencies which we already listed for the Standard Accounts. All the accounts are swap-free with no overnight swap charged if the MetaTrader 4 platform is used. Customers have a choice between using MetaTrader 4 and MetaTrader 5 in all account types.

The ECN Account with the lowest minimum deposit required is the ECN Zero Account, at only $200. No commission is charged, and the minimum floating spread is 1.5 pips, so it is very difficult to see here what qualifies this to be considered as an ECN account. Traders using the MetaTrader 4 platform can trade 48 Forex currency pairs and crosses, 3 metals, and 14 CFDs. Traders using the MetaTrader 5 platform have a smaller range of assets they can trade: 33 Forex currency pairs and crosses are offered here, as well as 2 metals.

The next account we’ll look at is the ECN Account. A minimum deposit of $500 is required. There is a variable floating spread which is always at a minimum of 0.1 pips, unlike some ECN style accounts at other Forex / CFD brokerages which offer no minimum spread and sometimes even quote inverted spreads. The commission charged is $2 per lot for a round trip trade, which translates to 0.02% of the nominal value of the trade position size. Traders using the MetaTrader 4 platform can trade 48 Forex currency pairs and crosses, 3 metals, and 14 CFDs. Traders using the MetaTrader 5 platform have a smaller range of assets they can trade: 33 Forex currency pairs and crosses are offered here, as well as 2 metals.

The final account of the six offered is the FXTM Pro Account. As its title suggests, this account type is intended for advanced and well-capitalized traders, requiring a minimum deposit of $25,000. Despite it being an ECN account, no commissions are charged, and the variable spread which FXCM describes as “institutional level” may fall as low as zero. If the MetaTrader 4 trading platform is used to trade this account, 43 Forex currency pairs and 2 metals may be traded. If the MetaTrader 5 trading platform is used instead, 33 Forex currency pairs and 2 metals may be traded, as well as 10 major stocks.

Bottom line: our verdict is that a suitably wide range of alternative account types are offered, but some of the account types seem to be better value and more meaningful than others. We see the best all-round account offered by FXTM as the ECN Account which requires a minimum deposit of $500. The Cent Account can be opened with a deposit as small as $10 and at this level of capitalization, even with the relatively high average spread on EUR/USD of 2.2 pips, at such a low deposit level it is certainly competitive.

Leverage is an important topic to consider when evaluating a Forex / CFD brokerage. FXTM’s position on leverage is a little complicated as it offers accounts based in several different countries, all of which have different laws and regulations governing the maximum amount of leverage which may be offered. This means that we must consider where the trader is based more than the type of account which the trader wants to open to determine available leverage.

FXTM in the United Kingdom and Cyprus offer a maximum leverage of 25:1 on Forex, 20:1 on precious metals and indices, 5:1 for individual stocks and shares, and 2:1 on cryptocurrencies.

FXTM in South Africa and Mauritius are not subject to any restrictions on leverage, therefore the maximum amounts offered by them to these accounts are a decision for FXTM alone. Here FXTM’s leverage offering is quite complex, because the maximum leverage offered is determined by a combination of factors:

  • Account Type (the Pro Account offers a lower maximum leverage than the other account types, presumably to mitigate risk to FXTM from large wins by successful traders who have deposited the $25,000+ minimum deposit)
  • Instrument Traded – major Forex pairs offer the highest leverage, minors and metals less, followed by Forex exotics and then cryptocurrencies, which are offered with the lowest leverage of any asset class.
  • Notional Value of a Trade – the maximum leverage is only offered on the first $200k or $300k of the notional value traded, decreasing by higher tranches of value. For example,

Despite this, we can set out the absolute maximum leverage offered by FXTM outside the E.U. and the U.K. by asset class as follows:

Forex- 1000:1

Indices- 1000:1

Metals- 500:1

Cryptocurrency- 100:1

Shares- 10:1

Every type of account offered by FXTM allows hedging, scalping, and automated trading via Expert Advisers. As FXTM only uses the MetaTrader 4 and MetaTrader 5 trading platforms, there is a wide range of automated tools available which work with these platforms, and FXTM does not block or disable them.

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