XM Vs HotForex
Overview
If you want to be successful at Forex trading, you need to choose a reliable broker. The trading industry is made up of lots of Forex brokers who offer great services. You need to check reviews of different forex brokers before you plan to trade with any of them. Our comparative review of HotForex and XM will help you choose the Forex broker best suited to you.
XM
XM Forex Broker
Features
- XM Group is owned by Trading Point of Financial Instruments – XM Cyprus.
- The XM website operates in more than 190 countries, and is regulated by top-tier regulatory authorities, which include ASIC, CySEC, and IFSC. More than 99.35% of the trades are executed within a second where you can confidently trade with XM.
- XM is one of the leading brokers offering an excellent platform to trade investment products ranging from forex, stocks, CFDs and Precious metals. Like other brokers. XM offers a demo account with the same trading conditions as a real trading platform so that users can familiarise themselves with the platform and practice trading.
- XM Group is headquartered in Cyprus, and since 2009, this broker has provided investment services in forex, commodities, indices, equity trading services. This broker is regulated by the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investment Commission (ASIC), and the Markets in Financial Instruments Directive (MiFID).
- The company is covered with an investor compensation fund of upto 20000 Euros, that gives additional security to the clients funds.
- XM broker guarantees a deposit bonus of 50% for any deposit below $1,000.
- 75.55% of retail investor accounts lose money when trading CFDs with XM. You should consider whether you can afford to take the high risk of losing your money.
XM Group Awards
- Best Customer Service Experience – Global – Awarded by Global Business Awards 2020
- Best FX Service Provider for 2020 – Awarded by City of Wealth Management Awards 2020
- Best Customer Service Global 2019 – Awarded by Capital Finance International Magazine (CFI.co)
- Best Market Research and Education Global 2019 – Awarded by Capital Finance International Magazine (CFI.co)
- Best FX Service Provider – Awarded by City of London Wealth Management Awards 2019
- Best Market Research & Education – Awarded by Capital Finance International Magazine (CFI.co)
HotForex
HotForex – Overview
Features
HotForex Features
- HotForex is one of the leading forex and commodity brokers that has been providing trading services since 2010. It offers several services to its traders, like expert advisors, demo accounts, great customer service, etc.
- HotForex offers security and guarantee by segregating the clients funds by offering negative balance protection and insurance through investor compensation funds.
- The Hotforex website operates in different countries, and it is regulated by top-tier regulatory authorities like the Cyprus Securities and Exchange Commission(CySEC), the Markets in Financials Instruments Directive (MiFID) and the Financial Conduct Authority(FCA).
- HotForex offers a wide range of trading instruments which includes spot metals, forex currency pairs (EUR, USD)Forex, CFDs on commodities, penny stocks, indices, and some of the most popular shares like Apple, Facebook, and Google on its website.
- HotForex provides a wide choice of customizable solutions on its trading platforms for new, intermediate, and experienced traders. It also offers low spreads combined with scalping and hedging.
- The minimum amount to be deposited to start trading with hf markets is $5; a reasonable amount.
- 71.37% of retail investor accounts lose money when trading CFDs with Hotforex. You should consider whether you can afford to take the high risk of losing your money.
Awards
- Decade of Excellence Forex Brokerage Asia 2020 – Awarded by Global Banking & Finance Review
- Most Transparent Broker – Awarded by the European – Global Banking & Finance Review Awards
- Best Client Services – Global 2020 – Awarded by Capital Finance International Magazine (Cfi. co)
- Best Partners Program Global 2020 – Awarded by International Investor Awards 2020
- Excellence in Customer Service Global 2020 – Awarded by International Investor Awards 2020
- Most Trusted Forex Broker – Global – Awarded by Global Forex Awards
XM Vs HotForex – Pros and Cons
| XM | HotForex | |
| Pros | ||
| The account opening process is easy and fast | The minimum amount needed is $5 | |
| This broker charges low withdrawal and CFD fees | Regulated by top-tier authorities | |
| It offers great educational and trading tools | Customer service is great | |
| Cons | ||
| It charges inactivity fees | This broker does not allow scalping | |
| For European clients, only Forex and CFDs are available | HotForex does not offer Expert advisors | |
| Forex fees are a bit high | ||
XM Vs HotForex – Features
| Features | XM Group | HotForex |
| About | Established in 2009 | Established in 2008 |
| Headquartered in | Cyprus | UK |
| Regulated by | Cyprus Securities and Exchange Commission (CySEC), the International Financial Services Commission (IFSC), Australian Securities and Investments Commission (ASIC) | The Financial Conduct Authority (FCA), MiFID, and CySec |
| Safety | Provides Negative balance protection, segregated client funds in major banks | Provides Negative balance protection, segregated client funds in major banks |
| Copy-trading | N | Y |
| Social Trading | Y | Y |
| ECN Broker | N | Y |
| STP Broker | N | Y |
| One click trading | Y | N |
| Expert Advisors | Y | N |
| Minimum Deposit | $5 | $5 |
| Maximum Leverage | 1:500 | 1:100 |
| Deposit and Withdrawal fees | N | N |
| Minimum Lot Size | 0.01 | 0.01 |
| Platforms | ||
| MetaTrader 4 Desktop | Y | Y |
| MetaTrader 5 Desktop | Y | Y |
| MT4 Web | Y | Y |
| MT5 Web | Y | Y |
| Mac Platform | Y | N |
| Mobile Trading | ||
| iOS | Y | Y |
| Android | Y | Y |
| Windows | Y | N |
| CFD | Y | Y |
| Forex | Y | Y |
| Alerts | Y | Y |
| Charting and trading tools | Y | Y |
| Account types | ||
| VIP account | N | N |
| Standard account | Y | Y |
| Zero spread account | Y | N |
| Micro account | Y | N |
| Demo account | Y | Y |
| Islamic account | Y | Y |
| Customer support | ||
| Live chat | Y | Y |
| Email support | Y | Y |
| Phone support | Y | Y |
XM Vs HotForex – Leverage
- XM provides flexible leverage from 1:1 to 1:500.
- Hotforex maximum leverage is 1:1000. Some jurisdiction’s cap leverage ratios are lower, like in the USA, it is 1:50, and in Poland, it is 1:100.
Risk Warning – CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XM Vs HotForex – Deposit and withdrawal methods
- XM Group accepts payment options such as credit card and debit cards, Skrill, Neteller, Bank wire transfer, etc. This broker covers deposit and withdrawal transfer fees that are used for payments made through Moneybookers, Neteller, and major credit cards. All withdrawals and deposits that are more than 200 USD are processed by a wire transfer.
- Hotforex has a wide choice of payment methods including credit cards, debit cards, American Express, Bank wire transfer, and e-wallet payment systems like Neteller, Skrill, Webmoney, Trustpay etc.
XM Vs HotForex – Trading platforms
XM Trading Platforms
- XM offers both Metatrader 4 and Metatrader 5. The Metatrader 4 trading platform can be accessed from desktop, mobile, and web. It provides free Virtual Private Server (VPS) hosting to existing and new customers with a minimum deposit of $5,000 and trading a minimum of 5 lots a month. Virtual Private Server hosting permits the traders to execute their trade orders 24hours and 5 days a week.
HotForex Trading Platforms
- Hotforex provides a copy trading and social trading service known as HFCopy, which helps the traders to follow other traders and copy their trades. Free VPS hosting can be used by both existing and new customers with a deposit amount of $5,000; given that they maintain the same amount for the forthcoming months.
Comparison of Fees
Both brokers don’t charge deposit or withdrawal fees. XM Group does not charge commissions for ultra-low and standard account types, but the commission is charged for the shares account type. The traders will be charged based on lot size, and it also charges inactivity fees from the traders.
Hf markets do not charge a commission for accounts like HFCopy, Pamm, Micro, Auto, and Premium accounts. Zero spread accounts are charged commissions. For one lot size orders on USD currencies, it charges $3 as commission.
| XM Fees | HotForex Fees |
| No Commission | No commission |
| Charges Inactivity fees | No Inactivity fees |
| No withdrawal fees | Withdrawal fees vary |
| No Deposit Fees | No deposit fees |
Comparison of Education and Research
XM Education
- XM provides research tools like news, XM research, market overview, technical summaries, trade ideas, XM TV, economic calendar, podcast education, XM live, live education, Forex webinars, platform tutorials, educational videos, and Forex seminars.
HotForex Education
- hf markets offer market analysis, market outlook, market news, economic calendar, live webinars, videos training courses and E-courses.
Comparison of Risk Management Tools
XM Risk Management
| Features | XM | HotForex |
| Stop losses | Y | Y |
| Trailing stops | Y | Y |
| Limit orders | Y | Y |
| One click trading | Y | Y |
| Price Alerts | Y | Y |
| Signal trading | Y | Y |
HotForex Risk Management
Comparison of Spreads
| Spreads | XM | HotForex |
| Forex Pairs | Starts from 0 pip, depends upon the account type | Starts from 0 pip |
| Commodities | Starts from 0 1 pips | Starts from 4.31 pips |
| Indices | Starts from 0.6 pips | Starts from 0.23 pip |
| Precious Metals (Gold & Silver) | Starts from 0.3 pip | Starts from 0.6 pips |
| Energy | Starts from 0.1pip | Starts from 0.6 pip |
| Bonds | Not applicable | Starts from 0.05 pip |
| Cryptocurrency | Not applicable | Starts from 0 1 pips |
Comparison of Assets
| Assets offered | XM | HotForex |
| Forex | Y | Y |
| Commodities | Y | Y |
| Stock CFDs | Y | N |
| Precious Metals | Y | Y |
| Equity Indices | Y | Y |
| Shares | Y | Y |
| Energies | Y | Y |
| Penny Stocks | N | Y |
| Cryptocurrencies | N | Y |
| Bonds | N | Y |
XM Vs HotForex – Accounts
- XM provides three types of accounts to choose from; Standard account, zero spread account and Micro account. Commission-free trading and tighter spreads are offered on the Micro account and Standard account. Zero spread account provides tighter spreads that involve commissions and initial deposits. XM provides floating spreads and high leverage levels. Beginners can make use of a micro account with a minimum deposit of $5, and micro-lots can be used to trade on all accounts. It also provides a free Islamic account that can be used by traders who are not interested in earning interest.
- Hotforex offers its clients several account types and currency pairs like EUR, USD to select from. The trader can select from floating and fixed spreads, commission-free trading in Premium, Micro, and fixed accounts, or they can choose tighter spreads that involve commission fees. New traders can sign up with a minimum amount of $5 with micro accounts, and micro-lots are available for trading on all accounts. HotForex Zero Spread Account is a low-cost trading solution that is suitable for all types of traders. Also, Swap-free Islamic accounts are available to certain traders with a minimum amount of $150; this can be used by clients who would not like to earn interest because of religious reasons.
XM Vs HotForex – Promotions and Bonus
XM
- 15% – Welcome Bonus up to $500
- XM Loyalty Program
- Refer a friend
- Free VPS services
HotForex
- You can earn daily cash rebates of USD 2 per lot directly to your trading account
- Applies to every deposit of USD 250 or more
- Leverage of underlying account prevails
- Maximum cumulative rebates of USD 8,000
- Automatically triggered and calculated
- Cash available for trading or withdrawal
Wrap Up
XM is an award-winning broker that offers a wide choice of account types, trading products, and great trading platforms. On the other hand, HotForex is the more reliable broker that offers a great range of services to its traders. XM Group provides the lowest price on more popular Forex instruments like EUR USD.
FAQ’s
1) What is the minimum deposit for XM Group?
Ans: When you register on XM, the minimum amount required is $5 for standard and micro-accounts, while $100 is the minimum amount for zero accounts. Deposits can be made through major credit card and debit cards, wire transfers, electronic payment methods, bank transfers, and several more.
2) How are HotForex and XM regulated?
Ans: The XM Group is regulated by CySEC, IFSC, and ASIC, and HotForex is regulated by FCA, MiFID, and CySEC.
3) What are the instruments offered by XM and HotForex?
Ans: Both XM Group and HotForex have popular Forex currency pairs like the EUR USD for trade. XM Group offers 55 currency pairs. If you want to trade cryptocurrencies, HotForex has several cryptocurrency CFDs, which include Bitcoin, Ripple, and Ethereum. If you want to trade commodities such as silver, gold, or oil, XM group is the way to go. HotForex does not offer commodity trading.
4) Do XM and HotForex offer MetaTrader and copy trading?
Ans: Both brokers offer copy trading as well as the Metatrader platform to their traders.
Investment Advice
Take your time when looking for a forex broker because a bad decision can be costly. 9 out of 10 retail investor accounts lose money within the first two years because they lack structure. Good forex brokers help their clients create a trading plan that can provide that structure. Top brokers will offer robust resources, low trading costs, and access to the worldwide interbank system. They’ll also handle your money with care, even if you open a small account in the hopes of turning it into a small fortune through your trading skills.
Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.