HotForex Review – Unbiased Pros & Cons Revealed ( 2020 )
HotForex is a forex broker company in Cyprus.
A Forex broker is a company that provides traders with access to platforms that allow them to buy and sell foreign currencies.
Forex brokers are also known as retail forex brokers or currency trading brokers. Retail currency traders in turn use these brokers to gain access to the 24-hour currency market for speculation purposes.
HISTORY AND HEADQUARTERS OF HOTFOREX
HotForex is a Cypriot forex broker company that was founded in 2010 and has its headquarters in Larnaca.
HotForex provides trading services and facilities to both retail and institutional clients and is an award winning forex and commodities broker that has positioned itself as the forex broker of choice for traders worldwide.
HotForex offers efficient tools to allow customers to trade Forex and derivatives online. HotForex is a multi-asset broker that offers trading services through a choice of several account types and trading platforms.
Retail, Affiliates and White Label clients can access various spreads and liquidity via state of the art automated trading platforms.
The brokerage firm itself has headquarter in Cyprus, but serves several global offices in Dubai, South Africa and offshore St Vincent and the Grenadines.
HotForex also has impact in African, Asian and MENA regions and trades along with the applicable licenses that regulate the Forex industry
AWARDS AND RECOGNITION
In the world of forex broker companies being honoured with awards from esteemed organisations or publications, count much for the company’s reputation.
HotForex has accumulated the following awards during its years of service to traders:
- Best Client Funds Security Global – Global Brands Magazine
- Top 100 Companies – World Finance Magazine
- Best Global Forex Copy Trading Platform – Global Forex Awards 2019
- Best Forex Customer Service Provider Latin America – Global Banking & Finance Review Awards
- Beyond Success Award – World Confederation of Business
- Best Partners Program Middle East – Egypt Investment Expo 2019
- Fastest Growing Forex Broker Mena 2019 – International Business Magazine
- Best Forex Broker Asia 2019 – International Business Magazine
- Best Forex & Commodities Broker – Latin America – International Finance Awards 2019
- Best Forex Affiliate Program 2019 – International Finance Awards 2019
- Best Forex Mobile Application – Forex Awards
- Most Reliable Online Trading Platform 2019 – International Business Magazine
- Best Forex Broker Latin America 2018 – International Business Magazine
- Best Global Forex Trading Education Provider 2018 – Global Brands Magazine
- The Bizz 2017 Peak of Success – World Confederation of Businesses
- Best New Forex Broker South Africa 2016 – Global Banking & Finance Review Awards
- Best Forex News & Analysis Provider 2016 – Mena Dubai FX Show
- Best Forex Broker Middle East 2016 – 17th Mena FFXPO
- Best Customer Service 2015 – European CEO Awards
- Best Client Funds – Mena Dubai FX Show
- Business Excellence 2015 – World Confederation of Businesses (WORLDCOB)
- Best Fx Online Broker 2015 – New Europe Magazine
- Best Client Fund Security 2014 – Global Financial Market
- Best Forex Broker Western Europe – IAIR Awards
- Best Forex Broker in China 2013 – CIOT Expo
- Best Online Broker Asia 2013 – World Finance Magazine
- Best Introducing Broker Program 2013 – International Finance Magazine
- Best Forex Broker in The Gulf 2013 – Mena Dubai FX Show
- Best Forex Affiliate Program 2013 Western Europe – Global Banking and Finance
- Best Online Broker Eastern Europe – World Finance Magazine
- Best Online Broker in Asia 2012 – World Finance Magazine
- Best FX Online Broker 2012 – New Europe Magazine
- ATOZ Forex Approved Broker – ATOZ Forex
- Best Forex Affiliate Program 2012 – Global Banking and Finance
A forex account is a trading account held by a trader with a company like HotForex that is primarily issued with the purpose of trading currencies.
Usually the number and type of accounts that a trader can open with a broker company differs according to the country in which the brokerage operates, the country of residence of the trader and the regulation authorities under whose jurisdiction it operates.
TYPES OF ACCOUNTS AND ITS FEATURES
HotForex offers a Demo Account that simulates a real trading environment based on actual market conditions, as well as a further six account types that offer complete flexibility for traders of all levels, risk appetites and trading volumes.
HotForex offers the Micro, Premium, Zero spread, HFCOPY, AUTO and PAMM Premium Accounts as well as an Islamic Account suitable for traders from the MENA region or beyond.
DEPOSITS AND WITHDRAWALS
HotForex allows customers to fund an account by means of more than 15 methods.
Deposit Methods include:
- Major credit cards
- Debit cards
- Wire transfers
- Domestic transfers available at some regions
- Cryptocurrencies and more.
The broker also issues its own HotForex MasterCard to make straight and safe online payments. The specified minimum deposit amount for an account is determined by the payment method chosen.
Withdrawals are easy to apply for and free of charge, however, Wire Transfers may involve some fees according to your bank and international policies.
To withdraw funds, traders must access their myHF area on the company website to submit a Fund Withdrawal request.
The various available payment methods will influence the process time. Wire transfer will take 2-10 working days, while e-wallets will load the request instantly.
COST AND FEES, COMMISSIONS AND SPREADS
Cost of trading depends on different factors like commissions, spread and margins.
The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move. One pip is 0.01 for currency pairs with JPY as the term currency and 0.0001 for all other pairs.
Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.
Commissions are the charges imposed by an investment broker on a trader for making trades on the trader’s behalf. The level of commissions will vary between different brokers and also depends on the asset being traded and the type of service offered by the broker.
Execution-only brokers, that is a broker that does not involve in any personal investment advice and gives traders complete control over how they trade the markets, tend to have lower commissions.
While contract for differences (CFDs) trading is a form of derivative trading that enables traders to speculate on the rising or falling prices of fast-moving global financial markets, its trading on shares will incur commission.
CFD trades on other markets has no commission but do wrap a spread around the market price of a certain instrument.
HotForex supports a tight spread offering and offers some of the most attractive spread opportunities in the industry. HotForex fees are built in a transparent manner while the only charge is variable spread.
HotForex does not charge additional fees or commission, making your calculation of the position easier despite the level of trader you are.
Traders should however remember about overnight or rollover fees as trading costs when you hold an open position for longer than a day. Lastly, there a fee is charged if you don’t use your account and show no activity for six months or more.
The facility that enables a trader to get a much larger exposure to the market than the amount he or she deposited to open a trade, is called leverage. Such leveraged products magnify a trader’s potential profit – but of course also increase the potential loss.
The amount of leverage is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that a trader has $1,000 in his or her trading account and is trading ticket sizes of 500,000 USD/JPY, that leverage will equate 500:1.
Traders with HotForex can operate with fixed or floating leverage, which is very useful, especially for those of smaller size.
According to European Securities and Markets Authority (ESMA) regulation, their maximum leverage ratio is set to a 1:30 on Forex instruments and 1:25 on Spot Metals. South African residents may access leverage of up to 1:200.
Higher leverage ratios like 1:400, 1:500 or even 1:1000 are offered through HotForex offshore entities since those registrations do not limit offering and allows high leverage levels.
Forex brokers tend to lure new traders with offers of attractive deposit bonuses. This can be useful, but it is essential to discern what a proper bonus is.
Such a bonus is but a way to compensate traders for choosing a certain broke, since once the account is opened, the trader will have the same expenses as any other.
The bonus is just a reward for the trader’s choice that gives some of these expenses back to the trader, once proving himself as an active trader.
Customers should note that no deposit bonuses are a great way to help you start trading, but it often comes with ridiculous terms so that even if you do make a profit, and you have to trade a high volume before you can do any form of withdrawal.
HotForex advertises the following bonuses on its website:
- A 100% Supercharged Bonus
- Daily Cash rebates of USD 2 per lot directly to your account
- Maximum cumulative Bonus USD 50,000
- Maximum cumulative Rebates USD 8,000
- Applies to every Deposit over USD 250
- Increased account Leverage (leverage of underlying account prevails)
- A 30% Rescue Bonus
- Protects from periods of drawdown
- Can be lost – but not withdrawn
- Applies to deposits over USD 50
- Additional Stop Out Bonus for qualifying accounts
- Maximum cumulative Bonus USD 7,000
- A 100% Credit Bonus
- Relaxed time Limit for completing requirements – encourages prudent trading
- Bonus can be Withdrawn (under certain conditions)
- Effectively brings the stop out Level on the account cash balance to zero
TRADING PLATFORMS, SOFTWARE AND ITS FEATURES
The forex trading software provided by a broker company to its clients is called the platform and is used to carry out their trades.
A platform can be a multi-asset one, which means that it allows clients to not only trade forex but also other asset classes like CFDs on stocks, stock indices, precious metals, and cryptocurrencies.
The decision about which platform to choose will depend on what a client would like to trade, therefore it will be one of the criteria when choosing a broker too.
HotForex provides the MT4 Platform and its newer version MetaTrader 5 as trading software. MetaTrader is compatible with various devices and its mobile trading platform is called HotForex Mobile Application.
MARKETS, PRODUCTS AND INSTRUMENTS
Most brokers offer all or some of the following kind of market instruments for trading:
Forex trading, also called currency or FX trading, involves the currency exchange market where individuals, companies and financial institutions exchange currencies for one another at floating rates.
As with currency exchange markets, commodity markets offer different investment opportunities for traders. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of inflation or economic uncertainty.
Equity or stock indices are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific set of the largest companies of a nation or they can represent a specific stock market.
The trading of gold and other precious metals involves hard commodities that are contract-based tradable goods.
The high volatility of energy prices due to political and environmental factors, supply and demand, extreme weather conditions and global economic growth is a typical feature of this product, making it another popular trading choice.
Bitcoin (BTC) is the digital currency with the largest market capitalisation and price levels since its inception in 2008. It dominates 50% of the total crypto market cap.
Litecoin (LTC) is similar to Bitcoin but differs in terms of scalability. Litecoin is another very popular altcoin and LTCUSD is a fork of Bitcoin (BTCUSD), copied from Bitcoin’s code and with some alterations and launched as new project.
Ripple (RPL) is popular among big banks with the Ripple network a next generation real-time gross settlement system. It allows instant cross-border fund transactions at very low costs.
Ethereum (ETH) is the second largest cryptocurrency after Bitcoin and allows developers to create smart contracts on a platform.
Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as a new version of the blockchain with different rules.
HotForex offers more than 150+ trading products and access to global markets. These include Indices, Metals, Energies, Shares, Commodities, Bonds and due to increasing demand now offering Cryptocurrencies with Bitcoin, Ethereum, Litecoin, Ripple and more.
SAFETY AND REGULATION
One of the first things a potential trader needs to establish, is whether a broker like HotForex is safe to trade with. One of the surest benchmarks to measure the safety of a brokerage is to establish which regulating authorities are watchdogs over its actions.
- HotForex (SV) Ltd is registered in St. Vincent & the Grenadines with the registration number 22747 IBC 2015.
- HotForex Markets (Europe) Ltd is authorised by CySEC (Cyprus) registration no. 183/12
- HotForex Markets (UK) Limited is authorised by FCA (UK) registration no. 801701
- HotForex Markets (DIFC) Ltd is authorised DFSA (Dubai) registration no. F004885
- HotForex Markets (SV) Ltd is authorised by FSC (Mauritius) registration no. C110008214
- HotForex Markets SA (PTY) Ltd is authorised by FSCA (South Africa) registration no. 46632
- HotForex Markets (Seychelles) Ltd is authorised by FSA (Seychelles) registration no. SD015
HotForex has made further efforts to safeguard its liabilities against clients and other third parties with a Civil Liability insurance programme for a limit of €5,000,000, which includes coverage against errors, omissions, negligence, fraud and various other risks.
HotForex only uses major banks and clients’ funds are kept separate from those used by the company.
Potential traders need to be assured that the broker company they chose can offer the necessary support and help whenever they may need it.
HotForex provides support in 27 languages. The broker can be phoned, emailed or reached via live chat.
Potential traders should always do as much possible research about speculative trading before commencing to do it.
Trading with confidence and success relies heavily on knowledge and understanding of the markets, therefore research options offered by brokers form an integral part its features when choosing the right company to trade with.
HotForex provides several analytical and research tools like Analytical Objects, an Economic Calendar, Autochartist and Trader’s Board for comprehensive analysis, as well as additional Premium Trading Tools.
They also offer VPS Hosting, with free VPS packages provided to those who deposit more than $5 000.
EDUCATION AND TRAINING
Before starting to trade, potential clients of HotForex should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.
If HotForex’s website itself does not provide enough means, a trader should explore other informative sources and means to obtain that skills and knowledge.
HotForex concentrates on Africa and Asia regions and strives to improve traders’ Forex experience and results.
Therefore they offer several Live Webinars, Video Tutorials, Daily Analysis and Market Outlooks along with News Feeds to assist new traders with everything you need to become a better trader.
HotForex is a company worth to be tried out by potential traders, knowing that it is a global brokerage company with a well-established customer oriented operation that provides a secure, well-regulated trading environment.
Services and products are tailored to specific requirements while presenting an inclusive range of clients’ accounts, platforms, tools, and instruments.
HotForex’s pricing strategy shows transparency with one of the lowest rates in the industry, with negative balance protection available for traders worldwide.
HotForex is continuously establishing its position as a market leader and offers great trading conditions and competitive advantages to all its clients.
|HOTFOREX AT A GLANCE|
|Regulating Authorities||CySEC, DFSA, FCA, FSA, FSCA|
|Countries not accepted for trade||Canada, North Korea, Sudan, Syrian Arab Republic, United States|
|Islamic Account (Swap Free)||Yes|
|Minimum Deposit||5 USD|
|Deposit Options||Bank Wire, VISA, MasterCard, BitPay, FasaPay, Maestro, Neteller, Skrill, UnionPay, WebMoney|
|Withdrawal Options||Bank Wire, VISA, MasterCard, BitPay, FasaPay, Maestro, Neteller, Skrill, UnionPay, WebMoney|
|Platform Types||MT4, MT5|
|OS Compatibility||Web, Mobile iOS and Android|
|Tradable Assets||Currencies: (45+)
Cryptocurrencies: (5+) Bitcoin, Litecoin, Ethereum
CFD: (5+) Gold, Silver, Stocks, Stock Indexes, Bonds, Oil, Other Commodities
|Languages supported on Website||English, Italian, French, Spanish, German, Malay, Filipino, Vietnamese, Turkish, Japanese, Arabic, Indonesian and several more languages|
|Customer Support Languages||English, Italian, French, Spanish, German, Malay, Filipino, Vietnamese, Turkish, Japanese, Arabic, Indonesian and several more languages|
|Customer Service Hours||24 hours per day, 5 days per week|
How many instruments can I trade with HotForex?
You can trade more than 150+ different instruments with HotForex, which include the following:
- Cryptocurrencies with Bitcoin, Ethereum, Litecoin, Ripple and more.
Which platforms are supported by HotForex?
HotForex provides the following popular trading platforms:
- MetaTrader 5
- HotForex Mobile
Does HotForex offer leverage?
Yes, HotForex offers a leverage of 1:30 on Forex instruments and 1:25 on Spot Metals. South African residents may access leverage of up to 1:200. Higher leverage ratios like 1:400, 1:500 or even 1:1000 are offered through HotForex offshore entities.
What spreads can I expect with HotForex?
HotForex offers variable spreads on its various accounts. If details on the website is not comprehensive, more information can be obtained from the customer support service.
Does HotForex charge commission?
No. More information on commissions can be obtained from the customer support service.
Is HotForex regulated?
Yes, HotForex is regulated by CySEC, DFSA, FCA, FSA, and FSCA.
Is HotForex a recommended forex trading broker for experts and beginners?
HotForex offers a fair trading environment for all types of traders.
What is the overall rating out of 10 for HotForex?
What is the difference between a demo and live trading account?
A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.
Does HotForex offer a demo account?
Can I convert my demo account to a live trading account with HotForex?
Not clear from information on the company homepage.
Which live trading accounts does HotForex offer?
- Islamic Account
- Micro Account
- Premium Account
- Zero Spread Account
- Auto Account
- PAMM (Premium) Account
- HFcopy Account.
What are the available deposit currencies for a live trading account?
USD and more
DEPOSITS AND WITHDRAWALS
What is the minimum deposit for HotForex?
How do you make a deposit and withdrawal with HotForex?
HotForex offers the following deposit and withdrawal methods:
The same method as used to fund an account must usually be used to withdraw money and monies will be only refunded to accounts in the same name as the trading account.
Does HotForex charge withdrawal fees?
No, but fees from financial institution may apply
How long does it take to make a withdrawal?
Withdrawals by means of certain methods may be processed within a day but depending on bank services it may take several days for the money to be available.
HotForex warns all potential traders that Forex and CFDs trading always carries a high level of risk and may not be suitable for all investors.
Before clients decide to trade the products offered by HotForex, they are advised to carefully contemplate their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.
When traders use HotForex’s margin leveraged accounts, they should maintain a sufficient level of margin to sustain their positions, since trading Forex/CFD and Options on margin carries a high level of risk.
While HotForex usually makes all efforts to fill a trade at the price requested, trading on-line does not necessarily reduce risks associated with currency trading, therefore quotes and trades are usually subject to the terms and conditions of a Client Agreement.
Potential traders should first acquaint themselves with all the risks associated with trading on margin and seek advice from an independent financial advisor if they have any doubts.