HYCM Forex Trading Overview
Trading with an established brokerage has its unique benefits. A company with a significant presence in the financial markets and a long-standing history of services offered to clients can indeed provide an accurate representation about the overall quality and reliability of the service provider. It is also close to impossible for a business to sustain itself in the market without providing high-quality services, as scam brokers are often confined to the history books with a negative reputation and intangible broker frauds.
HYCM is one of the longest serving companies in the financial markets and has been an active market participant since the late 1970s. HYCM has managed to enjoy a consistently successful run in the global financial markets, but the company had to face a substantial amount of negative criticisms as well. It is to be expected for the company, as there can be instances where the broker may have been relaxed in its approach or been unable to cater to traders’ primary requirements. Regardless, this comprehensive and expert HYCM broker review serves as an excellent reference point for both new and experienced traders to consider the several advantages and a few disadvantages of HYCM before investing in an HYCM Forex account.
A Brief History Of Operations & HYCM Regulation
HYCM began its operations in 1977 out of Hong Kong and is currently one of the largest conglomerates operating in the global financial markets. HYCM, short for Henyep Capital Markets, introduced its Forex and CFD brokerage in 1999 and is seen to be consistently developing its services by expanding to new and emerging markets to create an increased awareness among retail traders. HYCM has its offices in Hong Kong, London, Cyprus, and Dubai, which covers the entire European, Asian, and African markets. Unfortunately, with recent restrictions imposed by the CFTC and the NFA, HYCM is not authorised to provide its services to traders from the US. There are also similar restrictions to services from Australia, Japan, and other markets, where official regulators of these nations have barred international companies from operating without a valid license.
HYCM caters to more than 170 different countries around the world. Henyep Captial Markets changed its official brand name for online financial services to HYCM in 2016 and has acquired numerous companies to solidify its presence in the markets. HYCM also had a brief stint in the binary options markets, but since its 2016 merger, the company now concentrates solely on FX and CFD products.
HYCM is regulated by the Cyprus Securities and Exchanges Commission (CySEC), the Financial Conduct Authority (FCA of the UK), the Dubai International Financial Centre (DIFC), and the Securities & Futures Commission (SFC of Hong Kong). HYCM Europe operates under the strict regulatory guidelines of the CySEC and the FCA through the Markets in Financial Instruments Derivatives (MiFID) issued by the European Union and is also authorised by the European Economic Area (EEA) agreement to accept clients from all EU member nations, subject to local laws and legislations. HYCM also provides protection against broker default by protecting traders through the Investor Compensation Fund (ICF of Cyprus) and the Financial Services Compensation Scheme (FSCS of the UK). The ICF guarantees a reimbursement of up to €20,000 if a broker is rendered insolvent without clearing its clients’ debt obligations, while the FSCS offers up to £50,000 in compensation for qualified investors.
HYCM is a genuine broker that abides by all the legal guidelines enforced by its regulating bodies. Safety of investments receives absolute priority, as the broker keeps all of its clients’ funds in segregated accounts at top-tier banks in Europe. HYCM is barred from misappropriating traders’ capital for business expenses or for meeting any other operating capital costs. To ensure fairness and transparency in financial transactions, HYCM is audited by both the FCA and the CySEC, along with its other regulators.
HYCM Assets & Forex Leverage
HYCM has spent the best part of four decades into analysing the numerous financial opportunities in the market, which has helped them to develop a Forex trading product that not only incorporates Forex pairs, but also includes other CFDs such as stocks, commodities, indices, and metals. To succeed in the retail trading market, it is imperative for brokers to recognise the basic requirements of traders and investors. Although Forex traders mostly look to invest in currency pairs and commodities, it is also common for traders to consider alternative investment opportunities such as stocks and indices trading. HYCM offers more than 120 different financial assets, making it one of the leading Forex brokers in this regard. We have compiled a list of all the underlying instruments available for trading at HYCM:
Forex Pairs: EURUSD, USDJPY, GBPUSD, USDCHF, BTCUSD, AUDUSD, USDCAD, NZDUSD, USDHUF, USDMXN, USDNOK, USDPLN, USDZAR, USDSEK, USDTRY, USDINR, USDRUB, AUDCAD, AUDJPY, AUDNZD, AUDCHF, GBPAUD, GBPCAD, GBPJPY, GBPNZD, GBPCHF, CADJPY, CADCHF, EURAUD, EURGBP, EURCAD, EURJPY, EURNZD, EURCHF, EURTRY, NZDCAD, NZDJPY, NZDCHF, CHFJPY, US Dollar Index
Metals: SPOT GOLD, SPOT GOLD VS EURO, GOLD CFD, SPOT SILVER, SPOT SILVER VS EURO, SILVER CFD, COPPER CFD
Indices: Us 500 Index CFD, Us 100 Index CFD, Us 30 Index CFD, Uk 100 Index CFD, Germany 30 Index CFD, Euro 50 Index CFD, France 40 Index CFD, Italy 40 Index CFD, Spain 35 Index CFD, Japan 225 Index CFD, Hong Kong 50 Index CFD, China H-Shares Index CFD, China 300 Index CFD, China A50 Index CFD, India 50 Index Cfdy, Shanghai 50 Index CFD
Oil/Gas: Us Oil CFD, Brent CFD, Natural Gas CFD
Commodities: Us Cocoa CFD, Us Coffee CFD, Us Sugar CFD, Us Cotton CFD
Stocks: Alibaba, Apple, Amazon.Com, Facebook, Google, Jd.Com, Microsoft, Tesla Motors, Twitter, Vipshop Holdings
The maximum HYCM leverage for Forex and commodities trading has been limited to 1:200 for all accounts, but stocks and indices trading may be subjected to lower maximum leverage of 1:20. The minimum margin requirement is spot on with the regular leverage provided by other leading brokers, but as a trader, you should be careful about using a higher amount of leverage in the highly volatile FX markets. As for the drawbacks of the broker, the number of stocks is severely limited, as other brokers may offer up to 100 different stocks from leading financial markets around the world. While the choice of assets for Forex, metals, indices, and commodities are in line with our expectations, the selection of stocks should be improved to offer a more varied choice to the investor.
HYCM Minimum Deposit, Spreads, & Types Of Accounts
HYCM has conveniently elected to provide three different categories of trading accounts, by keeping the account options relevant to the initial minimum deposit. All three account categories have similar trading conditions, but there are minute differences related to the HYCM spreads and access to the tradable products. Smaller investors can opt for the Micro account option, which requires a minimum deposit of $100. The HYCM spread for the Micro account is quoted at 2 pips, while the number of tradable instruments is limited to 50. Micro account holders only get access to a few Forex pairs and commodities, but the minimum investment starts at 0.01 lots.
Micro account holders have the highest cost of trading, which starts at 2 pips spread for the major currency pairs. The spreads may increase according to the market conditions and is obviously higher for other assets. The second type of account, which is the Standard account, can provide a slightly reduced HYCM spread of 1.8 pips, but the Standard account requires a higher initial deposit of $1000. The Standard account also provides access to the entire list of financial assets, while other conditions remain the same as the Micro account. Standard account holders can also receive trading signals as a part of their account package, which does make the Standard account seem like more value for your money invested.
The VIP account has the lowest spread at 1.5 pips, but it is otherwise similar to the Standard account in all respect. VIP traders will need to make an initial deposit of $10,000, which is a considerable sum of money to invest in a regular market maker account. HYCM does not offer an option to open an ECN/STP account for direct market access conditions, which is a huge drawback for traders willing to invest in the company. Unlike the Micro and Standard accounts, the minimum investment required for the VIP account can certainly get you a full-featured ECN account with several account benefits.
Even though the fixed spread is competitive for a market maker account, traders will certainly feel the need to invest in an ECN account for a 0 pip spread guarantee and direct market liquidity. There are ECN brokers that may offer you an account for a small initial deposit of $100, along with tight spreads and DMA conditions at no additional costs. You can even opt for other market maker brokers that can quote lower spreads for market maker accounts at 1 pip, or even less, but as far as the general market conditions are concerned, HYCM does provide competitive spreads under normal market conditions.
HYCM Trading Platform
HYCM has recently made the switch to the MetaTrader4 platform, which now grants access to all the different financial assets through a robust and reliable interface. The MT4 is the world’s most popular Forex trading platform and has more market share than other trading platforms combined. The MT4 continues to be the most popular version of the MetaTrader, despite its more advanced MT5 version, which has a few advanced features and a few reduced capabilities compared to its predecessor.
It is certainly commendable for HYCM to offer MT4 for all of its clients, and it is also safe from the broker’s perspective to depend on a reliable trading platform, rather than offerings its services through a proprietary trading platform like it used to in the early days. The MT4 offers numerous trading features for the trader and can be customised according to individual trader needs. The MT4 also supports third-party trading tools and indicators through the open MQL forum that houses thousands of programmers willing to share information either for free or for a price. HYCM also supports the use of Expert Advisors for automated trading, without any restrictions.
HYCM Mobile Trading
The availability of MT4 as the standard trading platform creates an opportunity for HYCM to offer MT4 mobile apps for its mobile users, but the company has also gone ahead and developed a proprietary HYCM mobile app with more features and an advanced user interface. The HYCM mobile app is developed for both iOS and Android platforms and creates a unique trading interface that concentrates on improving the trading aesthetics and the features offered to smartphone and tablet traders. Since HYCM customers are spoilt for choices in the mobile trading department, traders should evaluate both platforms and choose the one that suits their preferences. The HYCM apps are available for download on both the Google Play Store and the Apple App Store.
Funding Options & HYCM Bonus
You can fund your account through a Wire Transfer, a credit/debit card payment, or through online payment processors such as Neteller, Skrill, and WebMoney. The minimum deposit amount is $100 at the time of joining, but the broker enables its traders to deposit a smaller amount to replenish their trading accounts or to meet the minimum margin requirements. Visa, MasterCard, Neteller, Skrill, WebMoney, and UnionPay payments allow traders to deposit a minimum of $20, while wire transfers will require a minimum deposit of $250. The minimum processing time for wire transfers are mentioned as 1 to 5 working days, but what is interesting to note is the disparity between the deposit and withdrawal times for other payment options.
Credit/Debit cards and e-wallet deposits are processed instantly, but the broker has mentioned a minimum of seven days processing time for withdrawal. Although the withdrawals are free of cost, traders may not appreciate the higher time required for processing the withdrawal. Withdrawals via wire transfers may cost an extra $30 if the withdrawal amount is less than $300, but all amounts beyond $300 are processed free of charge.
It may be difficult to receive an HYCM bonus for deposits, particularly for traders based in the EU, due to the firm CySEC regulations that prevent any kind of promotional activities involving free money. International clients may be able to receive a 25% deposit bonus, but traders are required to satisfy several trading conditions within a predetermined period to ensure that they have access to both the deposit amount and the profits made using the bonus money. HYCM reserves the right to deny bonuses, and it is really up to the account manager to issue bonuses to a particular trading account.
**Applicable only for HYCM Ltd
HYCM Demo Account
HYCM offers a demo account only for verified account holders, but the demo account is available free of charge. Demo accounts aren’t usually representative of live trading conditions, but demo trading should help traders to learn the markets, develop trading strategies, and invest in the markets without any risks. The demo account is not offered as an option until traders verify their identity and specifically ask for a demo account through the HYCM customer support department.
HYCM Customer Interaction
HYCM maintains a 24 hours customer service team that is available from Monday to Friday through live chat and email. For direct responses, the broker has also provided direct phone numbers that are available during regular business hours from Monday to Friday. It might be difficult to get through to the support during weekends, which is a slight issue, but the broker responds to all queries in a timely fashion. The broker has a professional attitude towards dealing with its clients’ concerns and has different departments to look into issues and complaints to reach a speedy resolution to a problem. Due to the involvement of the FCA and the CySEC into the proceedings, traders can seek the help of a financial ombudsman service, or approach a higher authority if the broker is incapable of dealing with the clients’ issues in a positive manner.
HYCM Trading Tools & Resources
HYCM has an extensive database of trading tools, beginners’ courses, tutorials, trading strategies, and e-books, along with free trading signals that are offered for Standard and VIP account holders. HYCM also covers the market events by providing technical analysis and fundamental reports, which can make a huge difference to a client’s trading prospects. HYCM is apparently one of the better brokers in the market when it comes to trading tools and market resources.
- HYCM is regulated by fundamentally strong EU regulators and has a substantial presence in Europe and Asia.
- HYCM offers access to a varied list of financial instruments.
- The ability to open a Forex account for as low as $100.
- Good customer service experience through live chat, email, and phone support.
- Excellent choice of mobile apps, along with MT4 support.
- Clients have to ask for a demo account. Demo account is only available for verified traders.
- The bonus offering is not consistent.
- No ECN/DMA accounts, which can lead to higher spreads.
Is HYCM A Scam?
HYCM is a regulated company with licenses from the FCA, the CySEC, the DIFC, and the SFC. HYCM is not a scam broker.
What Are The Account Funding Options?
Traders can fund their accounts through wire transfer, credit/debit cards, Skrill, Neteller, UnionPay, and WebMoney.
What Is The Maximum HYCM Leverage?
HYCM offers a maximum leverage of 1:200 for FX and commodities, while the leverage is reduced for stocks and indices trading.
HYCM is one of the oldest Forex brokers in the market, and they seem to understand the general trader requirements better than most of the other brokers. Choosing HYCM as your primary Forex broker can provide several advantages, including access to a wide variety of tradable instruments, excellent platforms, and the ability to sign up for free trading signals.