When choosing a forex broker, many traders compare top brokers to ensure they get the best platform. Two of the most popular names in the forex industry are XM and HFM (formerly HotForex). If you’re trying to decide between the two, this guide will help you understand how they stack up in key areas. Let’s dive into the comparison of XM vs HFM.
Before we jump into our full review, let’s take a quick look at the comparison table to help you quickly assess the differences between the two brokers:
| Feature | XM | HFM (HotForex) |
|---|---|---|
| Regulation | FCA, ASIC, CySEC, IFSC | FCA, CySEC, DFSA, FSCA, FSA, HFSA, CMA |
| Minimum Deposit | $5 | $5 |
| Account Types | Micro, Standard, XM Ultra Low, Shares | Micro, Premium, Zero Spread, Auto, HFcopy |
| Spreads | From 0.6 pips (XM Ultra Low Account) | From 0.0 pips (Zero Spread Account) |
| Commission | No commission on most accounts | Commission on Zero Spread Account |
| Leverage | Up to 1:888 | Up to 1:1000 |
| Trading Platforms | MetaTrader 4 (MT4), MetaTrader 5 (MT5), WebTrader | MetaTrader 4 (MT4), MetaTrader 5 (MT5), HF App, HFcopy |
| Bonuses | No-deposit bonus, deposit bonuses (region-specific) | 100% Supercharged Bonus, 30% Rescue Bonus |
| Customer Support | 24/5 Multilingual (live chat, email, phone) | 24/5 Multilingual (live chat, email, phone) |
| Education | Free webinars, tutorials, market analysis | Webinars, eBooks, videos, market news |
| Deposit & Withdrawal Fees | No deposit/withdrawal fees | No deposit fees, withdrawal fees may apply |
| Cryptocurrency Trading | Yes | Yes |
| Social Trading | Yes | Yes (HFcopy platform) |
Regulation and Safety
Regulation is one of the most important factors to consider when choosing a broker. Both XM and HFM are well-regulated, ensuring client safety.
- XM: XM is regulated by several authorities, including the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). Knowing that XM adheres to strict rules and guidelines gives traders peace of mind.
- HFM: Similarly, HFM is regulated by top financial bodies, including the FCA, the Dubai Financial Services Authority (DFSA), and the Financial Sector Conduct Authority (FSCA) in South Africa. HFM also complies with European regulations under the CySEC license.
Verdict: Both brokers offer solid regulatory backing, so this aspect is a tie.
Account Types
Having multiple account types can be beneficial depending on your trading style and capital.
- XM: XM offers a variety of account types, including Micro, Standard, XM Ultra Low, and Shares Accounts. The minimum deposit starts at $5, which is very appealing for new traders. Each account is designed to cater to specific needs, whether you prefer tight spreads or no commission.
- HFM: HFM also provides a range of account options like Micro, Premium, Zero Spread, and Auto Accounts. The minimum deposit is $5, similar to XM. HFM’s Zero Spread account is particularly popular among traders looking for lower costs on trades.
Verdict: Both brokers offer a good selection of accounts with a low minimum deposit. However, HFM’s Zero Spread account might be a better fit for traders focused on cost-efficient trading.
Spreads and Fees
Trading costs, including spreads and fees, are critical for any trader.
- XM: XM offers competitive spreads, starting from 0.6 pips on major currency pairs like EUR/USD for their XM Ultra Low account. XM does not charge any deposit or withdrawal fees, which is a plus for traders who frequently move funds.
- HFM: HFM’s spreads start as low as 0.0 pips on their Zero Spread account, but traders need to consider that there is a commission per trade. HFM also boasts no deposit fees, but there may be withdrawal fees depending on the method you choose.
Verdict: For traders looking for ultra-tight spreads, HFM’s Zero Spread account is ideal. However, XM might be more suitable for those who want to avoid commission fees altogether.
Trading Platforms
A good trading platform can make or break a trader’s experience. Both XM and HFM offer popular and reliable platforms.
- XM: XM offers the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, available on desktop, web, and mobile devices. These platforms are widely recognized for their advanced charting tools, automated trading options, and user-friendly interface.
- HFM: HFM also provides MT4 and MT5, along with the HFM app for mobile trading. Additionally, HFM offers the HFcopy platform, allowing traders to copy the strategies of professional traders, which is a unique feature.
Verdict: Both brokers use MT4 and MT5, but HFM has an edge with the HFcopy platform for social trading enthusiasts.
Leverage
Leverage can significantly impact your trading strategy, but it also increases risk.
- XM: XM offers leverage of up to 1:888 depending on the client’s region and account type. This high leverage can be attractive for traders with smaller accounts looking to increase their exposure.
- HFM: HFM offers leverage up to 1:1000, which is slightly higher than XM. However, the actual leverage available depends on the client’s country of residence and the regulatory body governing their account.
Verdict: HFM offers higher leverage, which may be appealing for those looking to maximize their positions. However, traders should always use leverage cautiously.
Customer Support
Reliable customer support is crucial, especially when issues arise with your trading account.
- XM: XM provides 24/5 multilingual customer support via live chat, phone, and email. Their customer service is known for being responsive and helpful, which is great for new traders who might need assistance.
- HFM: HFM also offers 24/5 multilingual customer service through various channels like live chat, email, and phone. In addition, HFM has a detailed FAQ section that can help traders solve common problems quickly.
Verdict: Both brokers have excellent customer support, so this category is also a tie.
Education and Research
Educational resources can help traders improve their skills, and research tools are vital for making informed decisions.
- XM: XM excels in educational content. They provide a wide array of free webinars, tutorials, and market analysis. Their daily webinars are available in multiple languages, making them accessible to traders worldwide.
- HFM: HFM also offers a solid educational program, including webinars, e-books, and videos. Additionally, they provide market news and analysis to help traders stay informed.
Verdict: Both brokers provide valuable educational resources, but XM stands out with its broader webinar offerings.
Bonuses and Promotions
Brokers often offer bonuses and promotions to attract new traders.
- XM: XM frequently runs promotions like a no-deposit bonus and deposit bonuses, depending on the trader’s region. These promotions can give traders extra funds to start with.
- HFM: HFM also offers bonuses, including a 100% Supercharged Bonus and a 30% Rescue Bonus. These bonuses can help traders boost their capital, but terms and conditions apply.
Verdict: Both brokers offer attractive bonuses, but it’s important to read the fine print before participating.
Final Verdict: XM vs HFM
So, which broker should you choose?
- Choose XM if you value low-cost trading without commission fees, excellent educational resources, and a reliable, user-friendly platform.
- Choose HFM if you want tighter spreads (especially with their Zero Spread account), higher leverage, and the ability to copy top traders through the HFcopy platform.
Ultimately, both brokers are excellent choices, and the right one for you depends on your trading preferences and goals. Whether you go with XM or HFM, you’re getting a trusted, regulated broker with great tools for traders.
Frequently Asked Questions
Both brokers are beginner-friendly, but XM might have the edge due to its extensive educational resources.
HFM offers lower spreads, especially with their Zero Spread account, but XM has no commission fees on some account types, which can be beneficial.
Yes, both XM and HFM offer cryptocurrency trading as part of their asset selection.
By comparing XM vs HFM, you can now make an informed choice about which broker aligns with your trading strategy.
Editorial Staff at Chweya is a team of financial experts led by Vincent Nyagaka, with over 9 years of experience in finance, commerce, forex, crypto, and marketing. Started in 2014, Chweya is now among the largest free financial resource sites in the industry and is often referred to as Wikipedia for business.