HotForex is a registered trading name of the Cypriot financial company HF Markets (Europe) Ltd, which is regulated by the Cyprus Securities and Exchange Commission (CySEC).
The company offers over 100 trading instruments divided into currency pairs, shares, commodities and indices.
Clients can trade with MetaTrader 4, one of the most popular and reliable trading platforms worldwide. It is available as a desktop version, as a web-based version and as a mobile application for iOS, Android and Windows Mobile devices. MT4 provides some useful features such as streaming news, analytical tools, one-click trading, advanced charting and automated trading.
HotForex claims to provide the necessary conditions to all kind of traders including scalpers and these using expert advisors.
There are 7 different trading accounts that differ in the minimum deposit amount, maximum leverage and the spreads:
- MICRO – for smaller trading volumes (minimum deposit of USD50, maximum leverage of 1:1000 and spreads starting from 1 pips);
- PREMIUM – for experienced traders (minimum deposit of USD500, maximum leverage of 1:400 and spreads starting from 1 pips);
- ZERO – tighter spreads but with commissions (minimum deposit of USD100, maximum leverage of 1:200 and spreads starting from 0.1 pips);
- CURRENEX – for scalping (minimum deposit of USD500, maximum leverage of 1:400 and spreads starting from 0.2 pips);
- FIXED – for automated trading with fixed spreads (minimum deposit of USD500, maximum leverage of 1:400 and fixed spreads);
- VIP – gives access to some additional benefits (minimum deposit of USD20,000, maximum leverage of 1:300 and spreads starting from 0.2 pips);
- AUTO – dedicated to trade with signals from the MQL5 Community (minimum deposit of USD500, maximum leverage of 1:400 and spreads starting from 1 pips).
The higher leverage could increase the risk of loss. Although the broker closes all open positions when margin call occurs, there is no negative balance protection and the result can be the loss of the entire deposit and a large additional loss. That happens if the Equity falls below 50% of the necessary Margin for any instrument or below 20% or 10%, depending on the account type.
The Risk Disclosure document informs that under certain conditions (high volatility during the important news or low liquidity) it may be impossible HotForex to execute any type of order at the requested price. That means stop loss orders are non-guaranteed and could be fulfilled at the first available market price. So, the realized losses can be larger than expected.
This company is a counterparty to the client’s orders and doesn’t process them via ‘Straight Through Processing’ (STP) to its liquidity providers. It also may combine orders from different clients and may aggregate positions. That means HotForex acts as a market maker and this could lead to potential conflicts of interests with customers.
HotForex website provides some tools including HotForex Analysis, Trading Central Analysis, Economic calendar, SMS service and Traders board.
The broker claims to provide free of charges account funding and cover all transaction taxes.