Since trading fees are one of the most defining aspects in evaluating a broker, traders should carefully consider them in detail.
Get a full breakdown of HFM trading and non-trading costs in our review below. Does HFM maintain a competitive pricing environment? Read our up-to-date HFM review.
Overview of HFM Fees and Charges
The HFM commission-free pricing environment is not notably cheap, although it cannot be said to be expensive, with minimum costs of 1.0 pips or $10.00 per 1.0 standard round lot. The commission-based alternative is more competitive, with raw spreads of 0.0 pips for a commission of $6.00 per lot on major currency pairs. Minor currency pairs cost more, as commissions increase to $8.00, which extends to equity trading and other non-gold assets.
A $2.00 per lot rebate bonus exists, lowering final trading fees for active traders, but an $8,000 maximum exists.
Here is a snapshot of HFM fees:
Fee | Type of Fee | Applicable at HFM |
|---|---|---|
Spreads | Trading fee | Yes (0.0 pips raw spreads, 0.6 pips commission-free) |
Commission | Trading fee | Yes ($6.00 - $8.00 per 1.0 standard round lot) |
Swap rates on leveraged overnight positions | Trading fee | Yes (including positive swap rates) |
Live Price Feed / Stamp Duty/ Settlement Fee | Trading fee | No |
Internal Deposit Fee | Non-trading fee | No |
Internal Withdrawal Fee | Non-trading fee | No (except 1% on BitPay transactions) |
Inactivity Fee | Non-trading fee | Yes ($5 monthly after six months) |
Account Fee | Non-trading fee | No |
Currency Conversion Fee | Trading fee and non-trading fee | Undisclosed |
HFM Fees, Spreads, and Commissions Explained
Knowing the HFM fees will help traders understand what they must pay, why they must pay, and how those costs fare against competitors. Trading costs at brokers fall into two categories: trading and non-trading fees.
Trading fees are:
- Spreads (the difference between the bid and the ask price of an asset, where HFM ranks as average)
- Commissions (Zero Spread account only and competitiveness is asset dependent)
- Swap rates (charged on leveraged overnight positions, where HFM is competitive)
- Currency conversion fee (undisclosed)
Non-trading fees are:
- Deposit fees (not applicable at HFM)
- Withdrawal fees (not applicable at HFM, except for a 1% fee on BitPay transactions)
- Inactivity fees ($5 monthly after six months, $10 after one year, and an additional $10 each following year)
- Currency conversion fees
HFM Trading Fees
HFM trading fees apply to each transaction and are asset and account type dependent.
Here is an overview of average trading fees at HFM:
Asset | Minimum Markup over Raw Spreads | Minimum Commission | Total HFM Fees |
|---|---|---|---|
Forex (commission-free) | 1.5 pips | Commission-free | $15.00 per 1.0 standard round lot |
Forex (commission-based) | 0.1 pips | $6.00 to $8.00 per 1.0 round lots | $7.00 to $9.00 per 1.0 round lots |
Equities (CFDs) | 0.001 to 2.45 points | $8.00 per 1.0 round lot | Asset-dependent |
Equities (Physical shares) | 0 (only raw market spreads apply) | Commission-free | Asset-dependent |
Cryptocurrencies | $0.0006 to $56.00 | Commission-free | $0.0006 to $56.00 per coin |
Indices | 0.04 to 9.3 points | Commission-free | $4.00 to $93.00 per contract |
Commodities | $0.03 to $16.00 | Commission-free | $3.00 to $160.00 per contract |
Overnight Fees (Swap rates)
Swap rates are the most ignored trading costs, but they may become the most significant fee per trade, dependent on the trading strategy.
Swap rates, or overnight financing, apply on leveraged overnight positions, which triple on Wednesday to account for trades kept open over the weekend. Closing positions before 5 p.m. EST allows traders to avoid swap rates.
MT4/MT5 traders can easily access swap rates from their platform by following these steps:
1. Right-click the desired symbol in the Market Watch window and select Specification.
2. Scroll down until you see Swap Long and Swap Short.
Currency Conversion Fees
HFM levies currency conversion fees if the asset currency differs from the account base currency, for example, buying a Euro-denominated asset in a US Dollar account. HFM’s terms and conditions note currency conversion fees at reasonable exchange rates, which fluctuate continuously.
HFM Non-Trading Fees
Non-trading fees are charged against account transactions other than trading, like deposits, withdrawals, and inactivity. Despite being significantly less frequent than trading fees, traders should know about them to avoid confusion.
HFM Deposit Fee
HFM does not charge an internal deposit fee. Therefore, a trader making a $200 deposit will receive $200. HFM supports USD, EUR, NGN, and JPY as account base currencies, but geographic restrictions apply on their availability. Non-supported currency deposits result in currency conversion fees.
HFM Withdrawal Fee
There is no internal HFM withdrawal fee, except for a 1% charge in BitPay transactions, but traders should consider third-party processing fees and potential currency conversion charges by payment processors.
HFM Inactivity Fee
HFM charges a monthly $5 inactivity fee after six months of dormancy. It doubles to $10 after one year and increases by an additional $10 each following year.
HFM Safety and Security
HFM, founded in 2010, segregates client deposits from corporate funds and offers negative balance protection on leveraged trades. It maintains a spotless track record and complies with seven regulators. It has earned a reputation as a trusted and secure broker, as evident by 3,500,000+ live trading accounts. HFM additionally protects traders with its market-leading €5,000,000 civil liability insurance policy per client.
Bottom Line
While the commission-free HFM pricing environment average, clients who trade major currency pairs in the commission-based alternative achieve more competitive trading fees. A volume-based rebate program lowers costs by up to $2.00 per round lot, making it an attractive choice for high-volume traders. Swap rapes on leveraged overnight positions are also competitive, and non-trading fees remain confined to inactivity costs. The Zero Spread account has commissions between $6.00 and $8.00 per 1.0 standard round lot for access to raw spread trading. A $5 monthly inactivity applies after six months of dormancy. It increases to $10 monthly after one year and an additional $10 following every year. The timing of HFM trading fees varies, where spreads apply instantly when a trader opens a position. Commissions, if applicable, apply when traders open and close trades and swap rates on leveraged positions after the cut-off time. HFM withdrawals are free, except for a 1% fee on BitPay transactions. Traders must consider potential third-party and currency conversion costs. HFM trading fees are spreads, commissions, swap rates, and currency conversion fees. HFM charges between $6.00 and $8.00 per 1.0 standard round lot in commissions in its Zero Spread account.FAQs
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