FXTM vs HotForex
Today’s comparison features two well-established brokers, FXTM and HotForex, also known in some markets as Forex Time and HF Markets, respectively. Both brokers assert that they are home to over two million accounts, testament to an attractive trading environment. Complete compliance with its regulators, solid research and education categories, numerous industry awards, and expanding market share is present at either broker. At FXTM, 74.0% of portfolios operate at a loss versus 73.3% at HotForex.
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- FXTM vs HotForex - Verdict
|Feature||FXTM (visit site)||HotForex (visit site)|
|FCA, CySEC, FSCM||FCA, CySEC, DFSA, FSC, FSCA, FSA|
Type of Broker:
|ECN/Market Maker||NDD/Market Maker|
U.S. Clients Allowed:
|$10 or a currency equivalent||$100 or a currency equivalent|
Commissions / Spreads:
|Spreads, Commission||Spreads, Commission|
|Stock CFD||Premium Pro|
|M - F, 0600 - 1800||24/5|
Features and Platforms
FXTM maintains the MT4 trading platform, enhanced via six plug-ins. While it is notable that an attempt at an upgrade exists, other essential third-party plug-ins are required to unlock the full potential of the trading platform. FXTM does offer a unique trading platform designed exclusively for mobile phones. The FXTM Pivot Points Strategy provides new traders with a necessary automated research tool. Free VPS hosting further supports automated trading strategies.
The market analysis offers clients well-presented research articles and trading ideas. Weekly market analysis videos add a nice touch. New traders have access to a comprehensive and well-thought-through educational category, a must-read for newcomers to trading. The combination of written content, videos, eBooks, webinars, and seminars confirms the attention to detail in this essential section. Overall, FXTM delivers a sound trading environment.
FXTM makes a bold statement and delivers on it.
Traders may select between the MT4 or MT5 trading platform, upgraded via the Premium Traders Tools, consisting of twelve plugins. The Autochartist plugin adds an essential automated market scanner, while a unique mobile trading platform is also available. VPS Hosting is available but comes at a monthly cost unless a rather high deposit level is achieved, with the minimum set at $5,000. HF Copy supports social trading.
Research is provided via the HF Analysis category, where clients receive regularly updated market commentary and trading set-ups. Live webinars and a podcast ensure ongoing fresh content and discussions covering essential topics, while the trader’s board compiles trading statistics from client positions. Education is available through an extensive written course and numerous videos. Webinars complement the educational value at HotForex.
HotForex maintains a sound choice of auxiliary trading services.
|Type of Platform:||MT4, mobile app||MT4, MT5, mobile app|
Guaranteed Stop Loss:
Interest on Margin:
FXTM grants access to 63 currency pairs, but only eight commodities are available, while cryptocurrencies are notably absent. Equity traders can trade 128 US equity CFDs, 50 European equity CFDs, and eleven index CFDs. HotForex maintains 49 currency pairs, and 25 commodities complement the selection, together with seven cryptocurrencies. Only 56 equity CFDs are listed, with 13 index CFDs, and three bond CFDs. Comparatively, FXTM provides clients with superior trading choices, despite the absence of cryptocurrencies.
Comparative List of Assets
Typical Spreads and FeesFXTM offers excessive spreads from 1.5 pips in the Cent and ECN Zero Account. The Standard account starts from 1.3 pips, which is reduced to as low as 0.0 pips in the Pro Account once the balance exceeds $25,000 or a currency equivalent. Spreads in the ECN MT4 account begin from 0.1 pips for a commission between $4 and $20 per round lot. Traders are offered commission-free equity CFD trading with costs as low as 0.1 pips. HotForex treats clients to a more cost-effective trading environment. With a commission-free Premium account, spreads increase from 1.0 pips. The Zero Spread account features a spread as low as 0.0 pips for a commission between $3 and $6 per round lot. Swap rates on overnight leveraged positions apply, and both brokers are transparent about trading costs involved. Corporate actions like dividends and mergers impact equity and index positions, and are passed onto traders’ portfolios. Third-party charges for deposits and withdrawals apply, but the overall fee structure is kept at a minimum at both brokers. Most retail traders will discover a friendlier long-term cost structure at HotForex. FXTM reduces the commission based on equity and transaction size. Overall, HotForex offers a more competitive cost structure.
Security and Trust
FXTM and HotForex are both regulated by the Cyprus Securities and Exchange Commission (CySEC), operating under the Financial Instruments Directive 2014/65/EU or MiFID II, and the EU’s 5th Anti-Money Laundering Directive. Traders are protected by the EU Directive 2014/49/EU, where the Investor Compensation Fund (CIF) covers deposits up to €20,000. Both equally maintain operating subsidiaries in the UK, authorized by the Financial Conduct Authority (FCA), where portfolios are protected by the Financial Services Compensation Scheme (FSCS), up to £85,000.
For FXTM, the Financial Services Commission of the Republic of Mauritius provides additional oversight. HotForex is also regulated by the South African Financial Sector Conduct Authority (FSCA), by the Seychelles Financial Services Authority (FSA), and the Dubai Financial Services Authority (DFSA). Enhancing the protection at HotForex is civil liability insurance, with a limit of €5,000,000, provided by Renaissance Insurance Brokers LTD. Both brokers are fully compliant with their regulators, segregate client deposits, and offer negative balance protection in a secure and trustworthy trading environment.
FXTM has a clean track record with its three regulators.
HotForex is equally compliant in five regulatory jurisdictions.
FXTM vs HotForex – Verdict
FXTM and HotForex are very similar brokers, each with an excellent track record and a well-executed business model. Over two million portfolios at each broker confirms their success. The asset selection is superior at FXTM, while the cost structure is friendlier at HotForex, especially for new retail traders. The former grants a more competitive leverage structure, while the latter supports social trading. In each case, research and education provides a valuable upgrade to the core trading environment. Traders who seek more trading opportunities with more massive portfolios will be better served at FXTM, while new retail traders may find HotForex a more suitable choice.
Does FXTM or HotForex offer lower pricing?
HotForex offers lower pricing with commission-free spreads starting at 1.0 pips versus 1.5 pips at FXTM. It extends to ECN accounts, where HotForex offers 0.0 pips for a cost between $3 and $6 per round lot against 0.1 pips and $4 and $20 per round lot at FXTM.
Is FXTM or HotForex safer for Forex and CFDs trading?
Both brokers provide an equally safe, transparent, and trustworthy trading environment. The two primary regulators are the Cyprus Securities and Exchange Commission (CySEC) and the UK Financial Conduct Authority (FCA). Client deposits are segregated, negative balance protection exists, and complete compliance with all regulators is maintained.
Which trading platform is better: FXTM or HotForex?
While the MT4 trading platform is available at either broker, HotForex grants more plugins than FXTM. Therefore, the trading platform is more enhanced. FXTM features its Pivot Points Strategy, while HotForex provides traders with the Autochartist plugin, both automated solutions to identify trading opportunities. HotForex additionally features HF Copy, its proprietary social trading platform. The overall choice is superior at HotForex.