HFM account types comparison
HF Markets is a well-regulated and highly reputable Forex and CFD (Contracts for Difference) broker with over a decade of experience. The broker’s customer base exceeds 3.5 million traders. The company offers an extensive range of asset classes and, 3138 tradable instruments to their clients.
Traders differ from one another based on their level of experience, trading balance, trading style, and personal skill set. Each trader has different preferences and to meet the needs of different traders, HF Markets offers 5 distinctive account types. In addition, swap-free, also known as Islamic, and demo versions of the live account types are also available.
In this guide, we’ll delve into details of each account type and learn about their offerings to help you find an account type that can fit your needs best.
HF Markets account types overview
HF Markets offers multiple account types for trading. There are no fixed spreads. Spreads change depending on the market conditions and spread markups. What’s great about HF Markets is that the broker offers both commission-free and, and spread markup-free account types to meet the needs of both active and less active traders. All account types support a full set of MetaTrader platforms, including MetaTrader 4 (MT4), and MetaTrader 5 (MT5). Both platforms can be installed on desktop, and mobile devices. In addition, web trading terminals are also available.
Trading accounts for beginners and strategy testers
For strategy testers and beginners, the best account types are Demo and Cent. The demo account is free of any charge. Provided charts and trading tools are available at zero cost. The main difference between live and demo accounts is that in demo trading, the trading environment is simulated and there’s no capital at risk. Demo trading is perfect for learning how to use trading platforms, how to place orders, and develop trading strategies.
The Cent account offered by HF Markets is best for testing trading strategies live with little capital at risk. The main difference between the Cent and other live trading accounts is that the Cent account enables traders to place orders with super low stakes. The contract size on this account is 100 times less than on other accounts. One trading lot on Cent account equals 1000 units, for other accounts the contract size is 100,000 units.
Trading accounts for active traders
Active traders place multiple orders in a short period of time, and therefore, their main priority is to find a trading account with low spreads. The Zero account offers the lowest spreads since there are no spread markups on currency pairs for these account holders. Instead, trading fees are charged in the form of commissions. The Zero account type is ideal for active traders, including intraday traders, scalpers, algorithmic traders that use trading robots to automate their trading, High Frequency Traders (HFT), arbitrage traders, and news traders that speculate on political and economic market announcements. The Zero account type is not intended for less active trading, such as swing trading or position trading.
Trading accounts best suited for less active traders
Less active traders, such as beginners, swing traders, and position traders prefer Pro, Premium, and Top-up Bonus account types. These accounts charge zero commissions. Instead, trading fees are included in spreads.
Swing traders typically open and keep active orders for longer than a day. Some swing trades might even last for a couple of months. Low commissions are really important for these traders, as commissions are charged based on traded lots.
HF markets live account types comparison table
In order to learn more details about each trading account such as trading fees, available instruments, minimum initial deposit levels, etc. we need to take a closer look at each account type.
| Account name | CENT | ZERO | PRO | PREMIUM | TOP-UP BONUS |
|---|---|---|---|---|---|
| Trading Platforms: | MetaTrader 4, MetaTrader 5, Webtrader and Mobile Trading | MetaTrader 4, MetaTrader 5, Webtrader and Mobile Trading | MetaTrader 4, MetaTrader 5, Webtrader and Mobile Trading | MetaTrader 4, MetaTrader 5, Webtrader, Mobile Trading and HFM Platform | MetaTrader 4, MetaTrader 5, Webtrader, Mobile Trading and HFM Platform |
| Spreads Pips: | From 1.2 pip | From 0 on Forex | From 0.6 pip | From 1.2 pip | From 1.4 pip |
| Account currency | USC | USD, EUR, NGN, JPY | USD, EUR, NGN, JPY | USD, EUR, NGN, JPY | USD, NGN, ZAR, JPY |
| Contract Size: | 1 lot = 1000 units | 1 lot = 100 000 units | 1 lot = 100 000 units | 1 lot = 100 000 units | 1 lot = 100 000 units |
| Trading Instruments: | Forex, Gold | Forex, metals, energies, CFDs on stocks, indices, bonds, commodities, ETFs, CFDs on crypto | Forex, metals, energies, CFDs on stocks, indices, bonds, commodities, ETFs, CFDs on crypto | Forex, metals, energies, CFDs on stocks, indices, bonds, commodities, ETFs, CFDs on crypto | Forex, metals, energies, CFDs on stocks, indices, bonds, commodities, ETFs, CFDs on crypto |
| Minimum deposit: | 0 USD | 0 USD | 100 USD or equivalent in base currency for Pro accounts | 0 USD | 0 USD |
| Minimum trade size (Lots): | 0.01 Lot | 0.01 LOT (1,000 units of base currency) | 0.01 Lot | 0.01 Lot | 0.01 Lot |
| Maximum available leverage | 2000:1 | 2000:1 | 2000:1 | 2000:1 | 1000:1 |
| Trade size increment | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Maximum Total Trade Size (Lots) | 200 Cent Lots per position / 500 Cent Lots account total | 60 Standard lots per position | 60 Standard lots per position | 60 Standard lots per position | 60 Standard lots per position |
| Max Simultaneous Open Orders | 150 | 500 | 500 | 500 | 500 |
| Margin Call Level | 50% | 50% | 50% | 50% | 50% |
| Stop Out Level | 20% | 20% | 20% | 20% | 20% |
| Trade execution model | Market execution | Market execution | Market execution | Market execution | Market execution |
| Personal Account Manager provided | Yes | Yes | Yes | Yes | No |
| Fifth Decimal | Yes | Yes | Yes | Yes | Yes |
| Telephone Trading | Yes | Yes | Yes | Yes | No |
| Commission for forex pairs | No | Yes | No | No | No |
| Personalized Service | No | Yes | Yes | No | No |
| Swap-free (Islamic account) availability | Available | Available | Available | Available | Not available |
It should be noted that the Raw spreads are available only for trading Forex pairs. Therefore, traders that are planning to use arbitrage trading strategies, need to take into account the spread markups for other trading instruments.
The maximum available leverage is 2000:1, however, the leverage may be adjusted when a trading account balance is more than 300,000 US Dollars. In Forex and CFD trading, leverage enables traders to control a larger position size with a relatively small amount of capital. In simple words, traders borrow money from their brokers to increase their purchasing power, and the brokers need to be able to support the high leverage. Leverage is often referred to as a double-edged sword due to its ability to amplify the potential returns or losses from trading. High leverage can be extremely risky, especially for beginners, as opening oversized trading positions can easily trigger stop out levels and lead to huge losses. When opening a trading account with HFM, you are free to choose from various leverage levels.
Swap free versions of HFM trading accounts
Swap free versions of the all 5 account types are available for traders who follow Islamic finance and Sharia law. Islamic finance principles prohibit traders to pay or receive interest. Swaps or rollover fees are the same as interest in trading.
In order to enable traders that follow Sharia low to participate in financial markets, brokers offer interest-free, or swap-free accounts. Be noted that only specific instruments are available for trading on Islamic accounts. The list of Forex pairs that you can access through swap free accounts includes:
AUD/NZD, AUD/USD, EUR/CHF, EUR/USD, GBP/JPY, GBP/USD, NZD/USD, USD/CAD, USD/CHF, USD/JPY, US/OIL, AUD/CHF, AUD/JPY, EUR/AUD, EUR/CAD, EUR/GBP, EUR/JPY, EUR/NZD, GBP/CHF, GBP/NZD, NZD/JPY, NZD/CAD, XAU/USD, and UK/OIL.
FAQs on HFM account types
Which account type should I choose if I want to test trading strategies?
Building trading strategies and testing them are equally important for beginner, intermediate, and professional traders. The best account types for strategy testing purposes are demo and Cent accounts. The demo accounts provide traders with a simulated trading environment where real money is not under any risk. The HF Markets Cent account has no minimum initial deposit requirements, and it’s perfect for testing trading strategies live. On the Cent account, traders can open the smallest trades and experience live spreads, and live trade execution with only a small capital at risk.
Which account type is best for scalping?
The best account type for scalpers in Zero account. The account type charges no spread markups, instead, trading fees are charged in the form of commissions. The account type is not only perfect for scalpers, but also for day traders, high frequency traders, algorithmic traders, arbitrage traders, and news traders. The reason is simple: traders that are very active and place orders frequently, prefer low spreads and are willing to pay commissions instead.
What is an account base currency, and which one should I choose?
Forex trading account currency is a specific currency in which your trading account is denominated or held. HF Markets offers 4 account currencies to choose from: US Dollar (USD), Euro (EUR), Nigerian Naira (NGN), and Japanese Yen (JPY). It is important to pick a trading currency carefully, as it can save your currency conversion fees dramatically. For example, in case you mostly use US Dollars in your day-to-day activities, it’s best to open an account in USD.
By Irakli
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