HotForex Broker Review
Table of contents
HotForex is an international broker, regulated by five regulatory entities, including the FSCA, FSA and CySEC. With offices in Johannesburg, South Africa, their local presence has dramatically increased traders’ trust. They have come a long way since their establishment in 2010, earning them a reputation for trust and transparent trading.
Despite being a market maker broker, traders can expect tight spreads with fair executions. Although they only offer two account currency options, ZAR and USD, traders have an extensive selection of Forex pairs to trade.
The lack of trading platforms, only MetaTrader 4, might be disappointing for some. Traders can enjoy rewards of up to USD 2 rebate for every lot traded.
You can find our comprehensive HotForex broker review below.
Pros / Cons
- Low minimum deposit
- High leverage
- Market maker
- No local deposit options
- Poor support
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HotForex is regulated in several jurisdictions including the FSCA (South Africa), Cysec (Cyprus), DFSA (Dubai), FSA (Seychelles) and FCA (UK). Having several approved regulators provides traders with additional comfort that the company adheres to the highest standards.
- FSCA (Financial Sector Conduct Authority): 46632
Clients may be able to open with the jurisdiction of their choice depending on their leverage requirements and preference of regulator.
Some regulators offer a greater or lesser degree of protection under various compensation schemes so it worth making yourself aware. UK clients, for example, benefit from the Financial Service Compensation Scheme up to the value of GBP 85,000.
HotForex is a market maker broker, where they provide liquidity directly to their clients. They offer market prices to clients which can often be more stable than the underlying price feeds where spreads may widen over news events or times of low liquidity (between trading sessions).
By adding additional liquidity to the market and allowing clients to trade against their prices, execution can often be improved. It does sometimes mean your word against the trading desk, but these instances should be few and far between.
We have not seen any evidence of stop hunting or market manipulation.
Forex Trading Education
There is a wide variety of educational material on the website. The first port of call is the Forex Education and e-learning centre. These resources will give you a good understanding of the main concepts running through the financial markets and Forex and CFD trading.
HotForex runs regular webinars to help clients with the more technical aspects of trading. Much of this focuses on current trends in the markets as well as some technical analysis techniques. They seem mostly aimed at the amateur and intermediate trader, but largely exclude the expert trader.
For those that prefer to watch a video to explain individual concepts, there is a library of short clips to advance your Forex education. This makes them a beginner-friendly broker.
We found the account opening process a bit lengthy. There were a lot of industry-appropriate questions, but it took quite a long time to activate the account. We applied over a weekend, so the support follow-up was understandably a bit slow. The questions are designed to make sure clients have suitable Forex and CFD knowledge to open an account which should be commended.
They offer 24/5 support via email, telephone and LiveChat. The markets open from 23:00 (GMT) and support is available from this time until the markets close on Friday at 22:00 (GMT).
Deposit and Withdrawals
HotForex has a good variety of funding options. Minimums start from ZAR 70, which seems pretty fair for those looking to start with a small amount and to test out the broker.
There are no fees for deposits and withdrawals. Withdrawal times are dependent on the method used and seem to take between 2-10 days which may be a little long for some.
- Banj Wire Transfer: Allow up to 2-3 business days for wire-transferred funds to be available in your trading account. Funds sometimes arrive sooner.
- Credit/Debit Card: Visa and Mastercard funding options, instant allocation to start trading immediately.
- Bitcoin: Deposit using the Bitcoin Cryptocurrency. Depending on the blockchain network, funds can take a few minutes to a few hours to reflect.
- Skrill: A popular e-wallet solution if you choose to add a level of security between bank and broker.
- Neteller: An alternative way to deposit funds online, safely and securely.
Client can enjoy a variety of well-structured bonuses of up to 100% on their deposit.
HotForex states that they are committed to providing their clients with the best possible trading conditions across their five account types. A bold statement.
Build trust and confidence with a risk-free demo account that simulates a live trading environment – this allows for a seamless transition to trading your hard-earned money. Demo with USD 100,000 virtual funds with unlimited usage.
These do vary from trading account type. Different levels of deposit or account size may determine different spread sizes or leverage options. Leverage offered is from 1:100 up to 1:1000.
We feel that 1:1000 is an excessive amount of leverage and may not be in the best interests of the clients’ account.
Spreads and Lot Sizes
They do have a Zero spread account which a good option but this will attract commission instead of spread – a good option in less volatile markets where spreads can be very tight.
Spreads are advertised from 1 pip for the majors for the rest of the accounts were no commission is payable. They have accounts suited to automated or EA trading as well as a copy trading offering.
Clients can offer copy trading services, and they can copy traders too if they are short of time or uncomfortable trading themselves.
Each of their five account types has unique features and benefits to suit the trader’s needs.
- Micro: Min. Deposit ZAR 70/ USD 5 – Max. Leverage 1:1000
- Premium: Min. Deposit ZAR 1400/ USD 100 – Max. Leverage 1:500
- Zero Spread: Min. Deposit ZAR 2800/ USD 200 – Max. Leverage 1:500
- Auto: Min. Deposit ZAR 2800/ USD 200 – Max. Leverage 1:500
- HFCopy: Min. Deposit USD 100 – 300 – Max. Leverage 1:400
HotForex provides the ever-popular MT4 platform, which is offered via download, mobile and web. They also offer the newer MT5 platform with the same ways to access namely download, mobile and web.
Both are powerful platforms and offer superior execution speeds. Your location and bandwidth may impact this slightly.
IB Affiliate Program
HotForex possesses a powerful affiliate platform with generous referrer options. The platform allows for regular payouts and a globally recognised support network. There is no cap on commissions, and different types of deals are available. CPA, commission and a combination seem to be the most favoured.
HotForex Review Summary
HotForex is a broker with a global presence, a sophisticated website with a considerable number of tools for traders to use. The language used is easy to understand, and they explain the concepts of trading Forex and CFDs exceptionally well.
There are more than enough trading options and flexible deposit methods to make it easy to recommend HotForex.
The only downside so far is that they can simplify the account opening process a bit.
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