Comprehensive HF Markets Review dedicated to traders from South Africa
HFM Review South Africa
Accepts South African Clients
Who is HFM?
HFM, formerly known as HotForex, is a prominent forex broker that has been operational since 2010. This broker offers South African traders over 1,000 different market products from a variety of asset classes. HFM is licensed and regulated by multiple authorities globally, including South Africa's Financial Sector Conduct Authority (FSCA). Further, HF Markets offers South African traders competitive trading conditions, high leverage of up to 1:2000, and various account options.
With no minimum deposit requirement, HFM provides South African traders with an accessible entry point into the market. Additionally, it supports the South African Rand as one of the account base currencies.
HFM Group is Regulated by
FSCA
Financial Sector Conduct Authority, based in South Africa, license number 46632.
CMA
Capital Markets Authority, based in Kenya, license number 155.
FCA
Financial Conduct Authority, based in the UK, license number 801701.
DFSA
Dubai Financial Services Authority, based in the DIFC, license no F004885.
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.
Pros
Cons
01
HFM Trading Assets
HFM offers a wide range of assets for South African traders. In total, there are over 1,000 different CFDs available to trade on this broker site. These include:
- Forex - A comprehensive selection of currency pairs, including majors, minors, and exotics are available to trade on HFM.
- Metals - CFDs on precious metals like gold, silver, palladium, and platinum are also available to trade.
- Energies - HFM allows South African traders to access CFDs on spot oil or oil futures.
- Indices - Investors on the HFM trading site can trade popular and lesser-known indices such as US30, UK100, and GER30, among others.
- Stocks - Traders can also access CFDs on stocks from major companies like Amazon and Alibaba.
- Commodities - HF Markets allows South African traders to invest in CFDs on both soft and hard commodities like cocoa, coffee, and copper.
- Bonds - Traders can further diversify their portfolios using CFDs on bonds issued by leading economies.
- ETFs - Finally, South African traders gain access to CFDs on various exchange-traded funds covering different markets, sectors, currencies, and commodities.
- Cryptocurrencies - HF Markets allows South Africans to trade CFDs on popular cryptocurrencies including Bitcoin, Ethereum, Ripple and Litecoin against some of the world’s most popular currencies.
Available Deposit & Withdrawal Methods
South African traders can use several payment options to deposit and withdraw funds, including:
Supported Platforms by HFM
HFM supports various trading platforms for both beginner and advanced traders:
02
Trading Platforms of The Broker
HFM understands that different traders have different needs. To cater to this variety, they offer a selection of trading platforms, providing both versatility and functionality. One of the most popular options is MetaTrader 4 (MT4).
Renowned for its user-friendly interface, MT4 is a great choice for beginners and experienced traders alike. It boasts advanced charting capabilities, over 50 technical indicators to help traders analyze the markets, and even supports Expert Advisors (EAs) for automated trading strategies.
For a more advanced trading experience, MetaTrader 5 is a great choice with additional features and tools. MT5 offers extended order types like buy stop limit and sell stop limit, giving traders more control over their entries and exits.
It also includes a built-in economic calendar to keep investors up-to-date on market events, and Depth of Market (DOM) for detailed market liquidity information. Furthermore, MT5 offers a wider range of timeframes and technical indicators compared to MT4.
Finally, HFM also offers its own in-house platform called HFM Platform derived from MT5. This platform provides real-time market data, so traders always have the latest information at their fingertips.
It also allows for full account management capabilities and secure trading. The best part? All three platforms are available on a variety of devices, including PCs, tablets, phones, and even web browsers. This gives traders the flexibility to trade from wherever they are, whenever they want.
Screenshot taken from the official website of HFM.com
Did you know?
HFM offers South African traders an exclusive 100% deposit bonus* that is not available in other locations. *(T&C Apply)
03
HFM Spreads and Fees
To cater to diverse traders, HF Markets offers a selection of account types, each with its fee structure. The Premium and Cent accounts boast spreads starting from as low as 1.2 pips on major currency pairs, with the added benefit of commission-free forex trading. There's also no minimum deposit at HFM required to open these accounts.
In contrast, the Zero account features spreads as low as 0.0 pips on major currency pairs. However, this comes with low commissions starting from $0.03 per 1k lot. There's no minimum deposit required for this account either. Meanwhile, the Pro account offers spreads starting from 0.5 pips on major currency pairs with no commission on forex trades. However, a minimum deposit of 1,800 ZAR (or 100 USD) is required to open a Pro account.
The Pro Plus Account is the premium option, offering the tightest spreads among all HFM accounts. Pro Plus accounts have spreads as low as 0.2 pips on major currency pairs and do not charge commission on forex trades. The minimum deposit requirement for a Pro Plus account is 4,700 ZAR (or 250 USD).
It's also important to note that HFM charges swap fees for holding positions overnight. These fees vary depending on the asset and the trade size.
Fortunately, all HFM accounts offer swap-free alternatives, catering to traders who follow religious restrictions on overnight fees.
04
HF Markets Education Section
HFM goes above and beyond to equip traders with the knowledge they need to succeed in the market. Its comprehensive education section features a wealth of resources, catering to both beginners and experienced traders.
This section offers a variety of learning formats to cater to different preferences. Some of the resources available in this section include ebooks, educational videos, webinars, podcasts, and trading classes.
HF Markets goes the extra mile by conducting physical trading classes in various South African cities. These classes bring education directly to traders.
At the time of writing this, the company has upcoming events in Stellenbosch, Kokstad, Durban, Amanzimtoti, and Pietermaritzburg. All these educational resources on HFM provide valuable knowledge and practical strategies to equip traders for success.
Did you know?
HFM supports scalping and hedging and has ultra-fast execution times.
05
HFM VPS and Trading Tools
HF Markets equips its traders with a variety of tools to enhance their trading experience. Its VPS service provides investors with lightning-fast response times and low latency execution.
Essentially, it allows for uninterrupted access to the trading platform from anywhere, anytime. There are three different packages traders can subscribe to.
The bronze package charges traders $25 per month, the silver charges $50, and the gold package charges $80. However, HFM VPS can also be obtained for free depending on a trader’s deposit and trading activity.
The broker also provides its traders with Autochartist. This powerful tool saves traders valuable time by automating technical analysis. It scans a multitude of trading instruments in real time and automatically identifies chart patterns and Fibonacci patterns that may indicate potential trading opportunities.
Further, the Advanced Insights market analysis tool goes beyond technical indicators. It incorporates sentiment and volatility analysis, using complex algorithms to scan millions of news articles and upcoming events. By analyzing these factors, Advanced Insights attempts to predict future market movements and highlight potential trading opportunities.
06
HFM Copy Trading
HF Markets offers Copy Trading, a valuable tool for traders of all experience levels. With Copy Trading, you can copy the trades of other, more experienced traders.
To participate, you'll need an HFcopy account which is easy to get. Simply apply via a link on the HF Markets website or your client's myHF area. You can choose to be a Follower or a Strategy Provider.
As a Follower, you benefit from copying diverse strategies, learning from experienced traders, and saving time on market analysis. This allows even busy people to participate in the market.
On the other hand, Strategy Providers get rewarded for great performance and can build a following. This can potentially boost their trading career through the gained publicity.
07
HFM Customer Support
Recognizing the importance of responsive customer support is very important. HFM offers traders multiple channels to get the assistance they need. For immediate assistance, live chat allows you to connect with the company for quick resolution to inquiries.
Alternatively, email and phone support provide options for detailed explanations or complex issues that may require more back-and-forth communication.
Furthermore, HFM maintains a strong social media presence on platforms like Facebook, Twitter, LinkedIn, and YouTube. This allows them to keep their audience informed about market updates, platform changes, and other relevant news.
08
HFM Leverage Review
HFM allows South African traders to control large positions in the market with leverage of up to 1:2000. However, remember this leverage is a double-edged sword. While it can amplify profits, it can also magnify losses. Always use strict risk management techniques when employing high leverage. In any case, here is a breakdown of the maximum leverage per asset class:
Forex 1:2000
Metals 1:2000
Energies 1:2000
Indices 1:500
ETFs - 1:5
Stocks 1:25
Commodities 1:Floating
Bonds - 1:50
Cryptos - 1:50
HFM in head-to-head with South African leading competitors
Trading Forex and CFDs entail risk.
Your capital is at risk.
Expert's cricital opinion
from the author of this HFM Review
HFM emerges as a strong contender for South African traders seeking a well-regulated broker with competitive pricing in the market. This broker’s pro account offers better than market spreads with no commission required which makes it stand out. On top of that, the broker offers a wide range of trading instruments and strong regulatory oversight. The lack of a minimum deposit requirement and ZAR support are particularly attractive to South African traders.
However, to fully grasp the quality of this broker, we must compare it with some of the top brokers in South Africa.
In this case, we will compare it to FP Markets and Exness. Getting started is easy with HFM's no minimum deposit requirement. This is advantageous compared to Exness’ $10 minimum deposit and FP Markets’ $100 minimum deposit. However, both Exness and HFM gain an extra point for supporting the South African Rand as an account base currency. In terms of regulation, these brokers are evenly matched. All of them feature oversight from the local FSCA in South Africa alongside top-tier regulators.
On another note, FP Markets leads the market products category with over 10,000 instruments. HFM comes second with over 1,000 different market instruments while Exness places last. Exness only features slightly over 200 market instruments. However, Exness provides a high leverage of up to 1:unlimited, followed by HFM at 1:2000, and FP Markets at up to 1:500.
Comparing spreads and fees, Exness stands out among the three with a spread as low as 0.2 pips on its standard account. However, HFM is not far off with a spread as low as low as 0.5 pips with no commission on its pro account. FP Markets is last in this category with a minimum spread of 1.0 pips on its standard account. Positively, all three brokers feature accounts with spreads from 0.0 pips plus commissions.
Peter Cook Ndungo
Editor, Senior Broker Analyst