HotForex Background and History
HotForex was founded in 2010 and is a worldwide online foreign exchange (forex) and contract for difference (CFD) broker. They are one of the leading online forex brokers in the world. HotForex is extremely customer focussed and its services are tailored to the needs of its clients. The company has won 20 industry awards and offers highly competitive spreads thanks to its long-standing relationships with major market liquidity providers. For example, HotForex typically offers 1.2 pips on euros to US dollars; 1.8 pips on euros to pounds; 5 pips on Brent Crude; 4.5 pips on silver (USD); 29 pips on gold (USD); 1 pip on the UK100; and 0.5 pips on the USA500.
There is a 10% commission charge on stocks CFDs. HotForex offer several different account types, with the entry-level being their Micro Account, which has a minimum account balance of $5 and a minimum lot size of 0.01. HotForex has over 100 tradable assets and a maximum margin of 1:1000, and is a brand name of the HF Markets Group which consists of three linked companies. HF Markets (Europe) Ltd is a Cypriot investment firm regulated by the Cyprus Securities and Exchange Commission (CySEC); HF Markets Ltd is registered in the Republic of Mauritius and is regulated by the financial services commission (FSC) of Mauritius; and HF Markets SA (PTY) Ltd is an authorised financial services provider under the Financial Services Board in South Africa.
Introduction to MetaTrader 4
The MetaTrader 4 (MT4) is the standard HotForex trading platform and indeed the standard trading platform used by experienced brokers around the world. Any serious contender for the title of best forex broker will almost certainly be using the MetaTrader trading platform. Powered by MetaQuotes software it includes a wide selection of integrated tools and features designed to improve and enhance trading ability. One of the key features of HotForex MT4 is the use of Expert Advisors to support market order types and automated trading.
Expert Advisors are programs that allow automation of the analytical and trading processes in the MT4 platform, and can be created by users according to their own needs and specifications by using the MetaEditor expert editing program. Since MT4 was launched in 2005 it has been supported by a global community of retail and professional users who recognise the platform as a perfect resource for creating algorithmic trading systems, carrying out manual trading and even social copy-trading. MT4 uses the MetaQuotes Language (MQL) syntax, which allows programmers to create their own automated scripts and trading systems. The use of this proprietary language has allowed MT4 to continually evolve and grow, and MT4 comes fully integrated with comprehensive charting tools and an extensive range of 50 technical indicators.
Top 3 Forex Broker Comparison
Navigation and Adaptability
This HotForex trading platform can be downloaded for free and is adaptable for a wide range of devices. The following options are available: MT4 desktop, MT4 multi Terminal, MT4 WebTrader, MT4 iPhone Trader, MT4 iPad Trader, MT4 Android Trader and MT4 Smartphone Trader. The MT4 Android Trader can be downloaded from the Google Play store, while the iPhone and iPad Traders can be downloaded from Apple’s app store. For all Windows-powered devices, MT4 can be downloaded directly from the HotForex website. HotForex MT4 doesn’t put a big drain on the resources of your device, so it doesn’t disrupt its functioning or slow it down.
This means that MT4 has a very impressive responsiveness, essential for effective real-time trading. The easy to navigate layout groups all of the platform’s functions under seven basic categories that can be accessed from the toolbar. The integrated charting tools and technical indicators let new users carry out basic technical analysis, and more experienced investors can customise the templates and charts and save them into a profile, meaning that all of your work and templates can be saved, backed up and exported across different devices. It’s possible to personalise MT4 by changing the colour and style of the charts, loading different pre-set templates or removing unnecessary functions.
Using MetaTrader 4
MT4 is considered the best charting software for Forex as it combines advanced technology with enhanced security. This means that you can open and close Forex positions without worrying about the stability of the platform. It includes over 50 pre-installed technical indicators, nine different time frames and three different chart times. Accurate market monitoring allows you to enter and exit the market with precise timing, essential for serious traders. The extremely user-friendly interface is suitable for both novice and experienced traders, and is generally easy to use, as are the various trading apps designed for mobile devices.
Admittedly, in some cases of a HotForex review there have been complaints that the platform is complex and difficult to use, with slow trade executions and minimal customer support, but these commenters appear to be in the minority. Overall HotForex MetaTrader has received overwhelmingly positive responses for user experience and remains one of the most popular choices in the industry. The advanced charting capabilities enable you to analyse the technical aspects of the market at the same time as trading, and forex trading can be done on the spot, futures and CFD markets. Types of assets available include currency pairs, precious metals, crude oil, indices, equities, cryptocurrencies and commodity CFDs.
Clients using the MetaTrader 4 platform have access to six different HotForex accounts: micro, premium, VIP, FIX, Currenex and Auto. You can trade using forex, indices, commodities or share CFDs across 28 currency pairs.
- The minimum deposit for a micro account is $5, rising to £500 for premium, FIX, Currenex or auto accounts
- A VIP account requires a minimum deposit of $40,000
- Spreads start at one pip for micro, VIP and auto accounts, and 0.4 pips for premium and Currenex
- Variable spread zero account and social account also available
- Currenex is designed for experienced retail traders, while VIP account holders are entitled to a personal manager
The HotForex Auto account lets beginner investors subscribe to either free or paid trading signals from the MQL5 community. This is a built-in feature of the HotForex MT4 trading terminal. Following a one-month performance verification period you can copy signals from any provider with paid signals. A relatively new feature is HF Copy, which allows experienced traders to claim a performance fee of up to 35% from followers who copy their trades. Followers can brush up on their trading skills and get valuable practice by copying trades. It’s also possible to open a demo account to try out HotForex before committing to a live trading account, and a swap-free Islamic account is available on request.
Accounts: A Closer Look
As mentioned previously, the entry-level model is the HotForex Micro Trading Account. This has a minimum deposit of $5, though this is considerably higher for clients of HF Markets (Europe) Ltd, at $50.The maximum leverage available is 1:1000, though again this is different for HF Markets (Europe) Ltd clients where it is 1:500, and this is granted according to the appropriateness of the client. This is a variable spread account, and the maximum number of simultaneous orders you can have open is 150. A premium Trading Account has a minimum deposit of $500 and maximum leverage of 1:400.
Again this is variable spread, and the maximum simultaneous position is 300. The Zero Trading Account has a minimum deposit of $100 and maximum leverage of 1:200. The Fixed Trading Account has a minimum deposit of $500, maximum leverage of 1:400 and maximum simultaneous positions of 300. As the name suggests, this is a fixed spread account. The VIP Trading Account has a minimum deposit of $20,000, maximum leverage of 1:300, a variable spread and a maximum simultaneous position of 400. The Auto Trading Account has a minimum deposit of $500, maximum leverage of 1:400, is variable Spread and has a maximum of 300 simultaneous positions. The Currenex trading account has a minimum deposit of $500, maximum leverage of 1:400, a maximum of 350 simultaneous positions, and is forex spreads only.
Security and Reliability
As one of the biggest forex brokers worldwide using one of the most widely-adopted trading platforms, HotForex MT4 is extremely safe and reliable. Users’ funds and deposits are kept in clearly segregated accounts with major global banks, so that if HotForex as a company should get into trouble for any reason, clients’ funds will still be safe. HotForex is fully regulated and in order to meet the requirements of its regulators has a civil liability insurance program that covers all its liabilities against clients and other third parties in respect of errors, omissions, fraud, negligence and other risks, up to a limit of €5,000,000.
In addition, HotForex has a policy of negative balance protection, which means that none of its clients will be responsible for paying back a negative balance, even under highly volatile conditions when, for instance, margin calls and stopouts fail to function correctly. Users’ private and sensitive information is also protected, as all data transferred between the trader and the server is encrypted with a 129-bit key and the trader’s IP address is completely hidden. As a result, HotForex stands up very well in any forex broker comparison based on security and can be used with complete peace of mind.
Payment Methods, Promotions and Resources
HotForex accepts a wide range of payment solutions, including major credit and debit cards such as Visa, Maestro and MasterCard. Bank wire transfer is also accepted, as are eWallets including BitPay, CashU, Fasapay, Final Pay, iDeal, Neteller, Przelewy 24, Skrill, Sofort, Trust Pay, UKash, UnionPay, WebMoney and Western Union. Funds can be accessed straight away and it’s easy to make additional deposits. The auto-withdraw option lets you transfer money from your trading account into MyWallet in an instant, and HotForex also has its own branded prepaid MasterCard for maximum convenience and efficiency. There are many bonuses and promotional programs, although these are not generally available to HF Markets (Europe) clients.
- 100% Supercharged bonus, up to a limit of $50,000
- 30% Rescue bonus, up to a limit of $7000
- 100% Credit bonus.
The HotForex loyalty program comes in red, silver, gold and platinum classes, and clients can earn reward points for each day they trade. There are also trading competitions to win prizes. In addition, HotForex provides a wide range of educational resources, including how to get to grips with the HotForex trading platform. For new traders around 20 different video tutorials are available in five different languages, supplemented by e-courses in online trading and a certain number of webinars. Between them these give you all the information you need to get started with MT4 and move on to more advanced concepts in a well-structured, logical fashion.
HotForex MetaTrader: The Complete Picture
HotForex MT4 is highly flexible and its algorithmic trading resources are second to none in any broker comparison. There are nine timeframes for each financial instrument allowing you to follow trends and decide on your entry and exit points. MT4 is a multilingual platform with daily account statements and real-time client account summaries, including account equity and floating profit and loss, and it’s possible to trade from more than one account at once.
Customer support is available via phone, email, live chat and social media 24 hours a day, five days a week. HotForex has a social media presence on Facebook, Twitter and Google+. On the downside, there is no weekend customer support and clients from the US, Canada, Syria, the Sudan and North Korea are not accepted. Also, for those tempted to upgrade to MT5, be aware that codes written for MT4 are not compatible with MT5. So if you’ve spent a lot of time coding custom indicators into MT4 then you can’t take them with you to MT5.