HotForex

Broker Type: STP; can act as ECN by streaming price from Currenex
Regulation: regulated by FSC of The Republic of Mauritius
Headquarter: Port Luis, Republic of Mauritius
Established: 2008
Forex Broker reviewed: HotForex

As a trader, seeking the best broker that can give you the most advantages to secure profits after profits in the forex market is a must. Thin spread – especially for popular currency pairs such as EURUSD or GBPUSD – can really help a trader to get more profits, particularly if he’s a day trader or scalper. The thin spread is one of the advantages of HotForex as a STP (Straight Through Processing) broker.

Pros and Cons

Pros
- Low spread, even in micro account
- Fast and flexible withdrawal
- Fast execution
- Allow EA in MT4 platform
- Low spread Currenex account available
- Regulated
- Accept US citizen

Cons
They don’t provide DOM (Depth of Market) figures at their Currenex account which is supposed to be ECN.

HotForex Review: Features Summary

1. Spread

Spread is one of the benefits in using HotForex service. As a STP broker, they provide minimum spread (can be as low as 0.3 pips for EURUSD).

Note: STP (Straight Through Processing) Forex brokers send orders directly from clients to the liquidity providers. This is performed by allowing information that has been electronically entered to be transferred from one party to another in the settlement process without manually re-entering the same pieces of information repeatedly over the entire sequence of events.

Additionally, they can “act” (technically) as an ECN broker if you choose to open a “Currenex” account. Here’s their statement:  “An ECN broker is a broker that provides a direct Electronic Communication Network (ECN) to other forex market participants. Therefore, by default we are an ECN broker as we stream live prices to you from Currenex on a Straight Through Processing basis (STP). As such we choose to promote ourselves as an STP broker”

More about ECN (Electronic Communications Network) broker: ECN Forex brokers provide their clients direct access to other participants in the currency markets. Because an ECN broker consolidates price quotations from several market participants, it can generally offer its clients tighter bid/ask spreads than would be otherwise available to them. Because ECN spreads are much narrower than those used by everyday brokers, electronic communication networks brokers charge clients a fixed commission per transaction.

Depend on the account type that you choose, you can get up to 1:500 leverage. This is considered really high among other forex brokers.

3. Commissions
An STP broker is compensated through the different between the bid and ask price. However, if you choose to open a Currenex account, which is technically ECN, you’ll have to pay $5 commission for every 100,000 USD traded.

4. Minimum deposit
Depend on the account type that you choose. The lowest deposit is $5 for Micro Account and $25 for Islamic account.

5. Strategies (EA, hedging, scalping, Swap-free Islamic Account)
HotForex allows forex robot (EA), hedging, trailing stop, and scalping, thus provide you with wider options of trading strategies to use. If you need swap-free Islamic account – either for religious or strategy reason – you could open it in HotForex for minimum $150 deposit.

In addition, HotForex also provide PAMM account. With this account, you could let someone (ie. a fund manager) to trade on your behalf safely since he can’t withdraw the funds; only trade. Only you as the owner has the right to withdraw funds from the account.

6. Trading Platform
HotForex is using the popular trading platform MT4 (MetaTrader4) to provide you with convenient trading environment in trading forex, CFD, and futures. Additionally, you can use the HotForex MetaTrader mobile to access your trading account via your PDA or Smartphone.

7. Support
Provide 24/5 support for their clients.

8. Official broker
If a broker is running on its own without being regulated by certain financial institution, then there is good chance that the broker is a scam brokerage. HotForex is regulated by FSC (Financial Service Commission) of Mauritius.

Regulation: Company No.: 094286/GBL; Category 1 Global Business ? C110008214 License issued by the Financial Services Commission (FSC) of the Republic of Mauritius.
“HF Markets Ltd” trading as “HotForex.com” is a tax resident in Mauritius, tax registration ? 27009163.

I asked them to provide proof for this and they send me a scan of their license:

9. Citizenship
This is their statement:  “HotForex do not currently restrict any citizenship, however from time to time we are required to carry our additional due diligence and compliance checks.”

10. Execution type: instant execution.

HotForex Review: Conclusion

There aren’t many trusted brokers that can give you competitive spread and convenience trading environment; in this case, I believe HotForex is one of them. Whether you are a forex robot user or you trade manually, you can get the best trading experience with this broker.

Click here to visit HotForex