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HFM Zero Spread Account Review

In the dynamic world of forex trading, brokers constantly innovate to attract traders with competitive features and benefits. HFM, formerly HotForex, offers a variety of account types to cater to different trading styles and experience levels. One of the accounts offered by this broker is the zero-spread account. The HFM Zero Account stands out for its commission-based structure targeting traders who prioritise cost-efficiency. Today, we are going to be doing an HFM zero spread account review to see what it has to offer to traders. Let’s dive in.

Understanding HFM’s Zero Spread Account

HFM’s zero account offers a low-cost trading solution that is suitable for all kinds of traders. However, this account is perhaps best suited for scalpers and high-volume traders seeking the tightest possible spreads. Investors receive raw, super-tight spreads from leading liquidity providers with no hidden markups. The spreads on this account start from as low as 0.0 pips for major currencies plus a commission as low as $0.03 per 1k lot. Notably, this account does not have a minimum deposit to start trading with it. Let’s look at some other key features of the HFM zero account.

Risk warning: Remember that forex and CFDs available at HFM are leveraged products and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.

Key Features of HFM’s Zero Account

 Zero Spreads

As we mentioned above, the main feature of the zero account on HFM is the spreads that start from 0.0 pips on forex and gold. These spreads are raw and straight from liquidity providers with no markups.

Commission-based Trading

While the account offers raw spreads, traders pay a commission starting from $3 per side per lot.

High Leverage

HFM’s zero account offers traders a fairly high leverage that depends on where a client is from. For example, Nigerian and South African traders gain a maximum leverage of up to 1:2000 on this account.

In contrast, traders in Kenya only have access to a maximum leverage of 1:400 on this account. Note that some traders may access significantly lower leverage levels because of regulatory restrictions, especially in Europe.

Swap-free

The HFM zero account is swap-free, meaning no rollover charges are incurred for holding positions overnight. This makes it suitable for all traders including Muslim traders who cannot pay swap fees because Sharia law does not permit it.

Base Account Currencies

This account supports a wide range of base account currencies, including NGN, ZAR, KES, USD, EUR, JPY, and INR, among others.

Trading Platforms

The zero account is only available on MetaTrader 4 and MetaTrader 5 on desktop, Android and iOS.

Market Instruments Available

The HFM zero account gives traders access to CFDs on forex, metals, energies, commodities, indices, cryptocurrencies, stocks, ETFs, and bonds.

Trading Forex and CFDs entail risk.

Your capital is at risk.

Advantages of the HFM Zero Account

Cost Efficiency

The primary advantage of the Zero Account is the cost efficiency it offers. By eliminating spreads, traders can reduce their trading costs, especially in volatile markets where spreads can widen.

Transparency

HFM's clear and upfront commission structure ensures transparency, allowing traders to accurately calculate their trading costs without worrying about hidden charges.

Swap-Free

The swap-free feature benefits all kinds of traders by eliminating overnight holding costs.

No Minimum Deposit

Traders do not need to deposit exorbitant amounts to access the zero account on HFM.

Advanced Trading Platforms

MT4 and MT5 offer a feature-rich environment for in-depth analysis and execution of trading strategies.

Potential Drawbacks of the HFM Zero Account

Commission Costs

While the zero spread feature is attractive, traders need to account for the commissions charged on each trade.

For traders with smaller accounts or those who trade infrequently, these commissions can add up and potentially offset the benefits of zero spreads.

Slippage

Market execution executes trades at the latest price on a broker site even when it's different from the one seen at the time of placing the order. This price slippage can be an issue for some traders.

Who Should Consider the HFM Zero Spread Account?

The HFM Zero Account may be best suited for:

Scalpers and Day Traders

Frequent traders who rely on small profit margins can potentially benefit from the tighter spreads and commission structure.

High-frequency Traders

Traders executing a large number of trades can potentially offset commission fees with lower spreads, reducing overall trading costs.

Experienced Traders

Those comfortable with commission-based structures and understand the risks associated with high leverage can leverage the account's features effectively.

While these trader profiles may be best suited for the HFM zero account, it is not designed only for them. Other kinds of traders can still find the features of this account favourable to their trading style. But overall, why should you consider HFM as a broker? Let’s take a look at its credibility.

Trading Forex and CFDs entail risk.

Your capital is at risk.

HFM’s Credibility

To check the credibility of a broker, there are two key things that are two key things traders should look at. These include the regulatory background of the broker and the online reviews from its customers. Notably, HFM has strong regulatory oversight from a variety of financial organizations in various jurisdictions. These include the FCA in the UK, the CySEC in Cyprus, the DFSA in the DIFC, the CMA in Kenya, and the FSCA in South Africa, among others. Such regulations are part of the reason why HFM is one of the biggest brokers in the market today.


Moreover, this broker has a solid rating online from people who have used its services. It enjoys a rating of 4.3 stars out of five on Trustpilot, which is impressive. 62% of the reviews are 5-star ratings showing a general satisfaction with the services of this broker to its clients. On another note, this broker has been operating in the market since 2010 without any serious issues, which is another good sign.

Closing Remarks

The HFM Zero Spread Account offers a compelling option for traders seeking cost-efficient trading conditions. With zero spreads on forex and metals, it caters particularly well to scalpers and high-frequency traders. Remember, choosing the right account is all about finding what fits your trading style. Therefore, even if you are not a scalper or high-frequency trader, you might still find this account suitable for you. Moreover, HFM's strong regulatory compliance and reputation further enhance the appeal of the Zero Spread Account