HotForex Review: All You Need to Know About This Broker
HotForex is licensed by five regulatory agencies in different continents. It’s an impressive list that includes the United Kingdom’s FCA, South Africa’s FSCA, and UAE’s DFSA. After seeing such a list, it is tempting to trust the broker with your money. But that is not all it takes to tell if a broker is a scam or genuine.
This HotForex review delves into other aspects of its business, such as the terms and conditions offered to clients, fees charged, and reviews left by traders. Any suspicious activities are highlighted to warn you before you trust them with your money.
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An Overview of HotForex
HotForex describes itself as a multi-asset forex and commodities broker that serves both retail and institutional traders. The broker offers over 1,200 tradable instruments, which include currency pairs, metals, energies, shares, indices, commodities, bonds, DMA stocks, and ETFs. You can, therefore, build a portfolio with a wide range of assets through the platform.
The broker is operated by HF Markets (SV) Ltd, a company incorporated as an International Business Company in St. Vincent & the Grenadines.
HotForex, however, has other licenses that allow it to offer services in different regions of the world. Based on the licenses, it appears to be a consortium of companies working under one umbrella name.
The company prides itself in having partnerships through which it performs Corporate Social Responsibility. The partnerships are with organizations such as UNICEF, Red Cross, Rotary International, and the Cyprus Anti-Cancer Society.
HotForex is also an official sponsor of the football club, Paris Saint Germain, and has sponsored several sporting events.
Licensing and Regulation
In online trading, it’s difficult to tell if a broker is genuine by just going through its website. And most times you can’t go to the office because their headquarters are located outside your country, or even on a different continent.
The best bet to assess an online forex broker is, therefore, by checking the regulators with which it is licensed. Brokers licensed by strict regulators are more likely to be genuine while brokers that have gone to great lengths to register in regions with low regulatory power are sketchy.
On its site, HotForex lists five regions and agencies that license it.
The parent company HF Markets (SV) Limited, is incorporated in St. Vincent & the Grenadines as an International Business Company with the registration number 22747 IBC 2015.
The regional regulatory agencies that have licensed HotForex include:
Financial Conduct Authority (FCA) of the United Kingdom under the name HF Markets (UK) Ltd and license number 801701.
Dubai Financial Services Authority (DFSA) of United Arab Emirates under the name HF Markets (DIFC) Ltd and license number F004885.
Financial Sector Conduct Authority (FSCA) of South Africa under the name HF Markets SA (PTY) Ltd and license number 46632.
Financial Services Authority (FSA) of Seychelles under tradename HF Markets (Seychelles) Ltd and Securities Dealer License number SD015.
The Cyprus Question
In various review sites, it is indicated that HotForex is registered in Cyprus and licensed by the Cyprus Securities and Exchange Commission (CySEC) under the name HF Markets (Europe) Ltd.
The details of this license are still available on the CySEC website, which shows that the broker registered in 2012 and was issued license number 183/12.
CySEC is a reputable regulatory agency. It is, therefore, curious that HotForex does not mention this detail on its website. Further, in its list of countries that it does not operate, the broker lists the European Economic Area, of which Cyprus is a member.
With the group using different domains for different regions, it is not clear whether there is an affiliate registered in Cyprus or the license expired. If you are in the EEA, clarify from the company before opening an account and depositing your money.
Types of Accounts
There are six different types of HotForex trading accounts with differing features.
With a minimum deposit of USD 5, the Micro account is the best for beginner retail traders. It has a maximum leverage of 1:1000 and you can have as many as 150 trades open simultaneously.
The Premium account has a minimum deposit requirement of USD 100. Zero Spread and Auto have USD 200. You need a minimum of USD 250 to open a PAMM (Premium) account. The leverage for these accounts is 1:500.
Last is a HF Copy account that has a minimum deposit requirement of USD 500 for strategy providers and USD 100 for followers. As a strategy provider, you can make some money from the trades that followers execute using your strategies and signals.
The spreads for all the six types of accounts start from 1 pip but can be as low as 0.00 in the zero spreads account which charges commissions.
Depositing and Withdrawing
All the major debit and credit cards are accepted for making deposits to HotForex accounts. Wire transfers, e-wallets, and crypto transfers are all accepted as well. The deposit process is straightforward, unless there is a problem with your financial service provider.
Is HotForex a scam?
Sadly, yes. The are very many complaints about HotForex scamming traders. Here are a few from Trustpilot:
The ambiguity in its licensing raises some questions for traders that are not in the indicated regions. To traders in Nigeria or Singapore, for example, it may not be clear to which authority they should report the broker in case of a dispute. Often, in such scenarios, the trader finds that the account that they opened is aligned with regulators with low enforcement power.
If you are having problems reclaiming your money from a rogue broker, don’t allow them to take you in circles. Irrespective of the licenses they hold, you can recover your money. Contact experts to offer you guidance and lead you through the process. Get a free consultation session with Trader Protection and check if you qualify for a no-win, no-fee service.