HYCM is one of the most popular brokers that offers trading services in various financial instruments, including Forex and CFDs. While the broker’s pricing structure isn’t competitive, limited research and educational resources could also become a deterrent for forex enthusiasts.
However, HYCM’s indemnity insurance backup makes it a safe platform for investment. Not to mention the company holds licenses from some of the top-rated regulators across various regions. In this piece, I review various aspects of the broker in detail.
HYCM is a brand name of Henyep Capital Markets Group. The company was established in 1977. With 05 regional offices in the world’s leading financial centers, the broker serves clients in more than 140 countries worldwide.
During 40 years of excellence, HYCM received 15 industry awards in recognition of its services. The broker claims to offer tight spreads and instant trade executions. With flexible account types, the company allows traders to access over 300 financial instruments to trade. While the registration process with the broker is simple, the availability of multiple options to fund your account helps you get started with HYCM immediately.
|Full suite of MetraTrader platforms|
24/7 customer support
Islamic accounts available
Multiple payment options
Strong regulatory framework
|Does not accept US clients |
Limited research and educational resources
Charges in-activity feeHigher trading cost
Who HYCM Is For?
With a wide range of tradable assets and flexible account types, HYCM is well suited for most classes of traders. However, the broker’s trading cost is relatively higher than its competitors, making it less attractive to discount traders.
On the other hand, the strong regulatory framework of the firm can be one of the reasons for risk-averse traders to sign up with it. The broker also offers virtually funded demo accounts so clients may practice unlimited trading strategies without risking their real investments. HYCM’s negative balance protection along with funds insurance can also hold the interest of high-volume traders. Islamic accounts can potentially attract Muslim traders to discover their fate with the broker.
Sign up bonus: The broker offers a 10% deposit bonus to welcome clients onboard.
Is HYCM Safe?
Yes, HYCM is undoubtedly a safe broker. The broker is regulated by the world’s most reputable regulatory authorities, such as CySEC, DFSA, CIMA, and FCA. Besides keeping clients’ funds in segregated bank accounts, the broker offers indemnity insurance under registration with the Financial Services Compensation Scheme (FSCS). The FSCS insurance enables clients to seek compensation against their losses up to a specific limit if the company becomes bankrupt.
HYCM advanced web encryption protocols keep clients’ financial information out of the reach of hackers. Also, factors such as two-step authentication and biometric logins make unauthorized access impossible.
|Licenses:||CySEC, DFSA, CIMA, and FCA|
Offering of Investments
HYCM offers more than 300 financial instruments to explore. However, the available options may vary depending upon your selected account type and country of residence. For example, clients based in Cyprus and the UK can’t access crypto CFDs at HYCM. Similarly, EAs are not available for standard account holders.
On the other hand, more than 60 crypto CFDs are available to trade via an offshore entity registered in Saint Vincent and Grenadines. Not to mention, the broker offers more options to clients using MT5 as compared to those who prefer sticking with MT4. Therefore, confirm the availability of specific tradable assets from the broker before signing up with it.
|Forex: Spot Trading||Yes|
|Currency Pairs (Total Forex pairs)||60+|
|Social Trading / Copy-Trading||No|
|CFDs instruments||Forex, Stocks, Indices, Metals, Crypto|
Commissions & Fees
While the broker offers three types of accounts, the overall trading cost in each account is relatively higher than average industry standards. Also, the nature of spread employed in each account type is different. For example, Standard account holders can have fixed spreads, while variable spreads are available for the Classic account holders. On the other hand, Raw accounts come with Raw spread charging. While the minimum deposit to open a Raw Spread Account with HYCM is $200, clients can sign up for the Standard and Classic account for $100 only.
Spreads in Standard and Classic accounts start from 1.8 and 1.2 pips, respectively. However, the broker doesn’t charge any commission in these two accounts. Raw account spreads start from 0.2 pips but attract a commission, making the total-in cost +$4 per round. While the average spread on majors i-e, EUR/USD stays around 2.0 pips in Standard and Classic accounts, spread in the Raw account averages near 1.1 pips. Conclusively, the trading cost at HYCM is quite expensive.
|Minimum Initial Deposit||$100|
|Average Spread EUR/USD – Standard||2.00 pips|
|All-in Cost EUR/USD – Active||1.10 pips|
Platforms & Tools
Since HYCM is a MetaTrader broker, it offers a full suite of MT4 and MT5 trading platforms across all mediums. Traders can either access them online or have them installed on their PCs and mobile phones.
However, the broker doesn’t offer a proprietary trading platform. Clients don’t have other options but to use the MetaTrader platforms. Not to mention, Henyep Securities does offer separate trading platforms in Hong Kong and China. However, I couldn’t test them since these platforms are only country-specific.
Coming back to MetaTrader platforms, clients have every necessary tool available that is needed for a rich trading experience. Besides hassle-free setup, navigation across the MT4/MT5 trading interface is super convenient. Since the broker offers minimal trading restrictions, traders can also use expert advisors. However, EAs are not available in Standard Accounts.
Clients can deposit funds in six currencies, including USD, GBP, RUB, EUR, AED, and CAD. The broker doesn’t charge any fees on deposits and withdrawals. However, withdrawals via Skrill or Neteller exceeding $5000 are subject to a 1% processing fee.
|Virtual Trading (Demo)||Yes|
|Desktop Platform (Windows)||Yes|
|MetaTrader 4 (MT4)||Yes|
|MetaTrader 5 (MT5)||Yes|
|Charting – Indicators / Studies (Total)||50+|
|Charting – Drawing Tools (Total)||30+|
|Charting – Trade From Chart||Yes|
|Order Type – Trailing Stop||Yes|
HYCM’s research facility doesn’t look impressive. You only have a few calculators, an economic calendar, and a news section to explore. Clients can use calculators to calculate different forex data, such as pips, currency conversion, and margins. Traders can also access automated technical analysis via Trading Central. While the broker features automated technical analysis as an MT4 indicator or through a dedicated section in the web portal, it also broadcasts forex news within the MetaTrader platforms.
Besides featuring videos on daily analysis in the Daily Market Analysis section, the broker enables clients to keep an eye on the upcoming significant economic events using the economic calendar. It is worth mentioning here that some of the content available on the HYCM website appears outdated. In short, the broker could have considered adding some more features to its research section, making it more appealing to forex enthusiasts.
Like the research section, HYCM’s educational library also seems to be missing a competitive variety. The education section comprises forex education, webinars & workshops, and seminars. While the broker features 22 tutorial videos under the beginner’s course head, a total of four trading guides are available in the e-books catalog at HYCM. The good thing is that the broker has categorized the educational content depending upon the subject and complexity level.
For example, traders who wish to learn different trading strategies can straight away explore the trading strategies tab. On the other hand, clients who seek technical content can click on the technical tools area. Not to mention, the broker also hosts educational webinars to help traders seek resolutions to their queries from expert trading professionals and learn effectively.
Even though the educational section of the broker is better than its research section, it still needs to be updated with more resources. For example, the broker could add some more written educational content covering a wide range of trading tips and techniques. A glossary can also be a worthwhile addition to help clients to know different trading terminologies.
As the broker does not feature a proprietary trading platform, it also lacks a mobile trading app. Hence, on-the-go traders can only go for MT4/MT5 mobile trading platforms at HYCM. Clients can download and install Android and iOS supported mobile apps from the respective stores, such as Google PlayStore and Apple Store.
Traders have limited options available on the mobile trading app as compared to the web-based or desktop versions. Also, the small screen resolution remains the ultimate limitation for conducting technical analysis. However, both MT4/MT5 mobile trading apps come with all primary trading tools and indicators needed for meaningful trading.
|Mobile devices||Apple and Android|
|Features||Watchlist, charting tools, price alert, one click trading, etc.|
Undoubtedly, HYCM is one of the oldest platforms to facilitate trading services. Despite its prestigious history of introducing innovations in the forex trading regime, the broker struggles to meet the trading standards set by other reputable names in the industry. While HYCM’s trading cost is relatively higher, its limited research and educational resources put the broker at a competitive disadvantage. However, the broker’s regulatory framework, swap-free accounts, and deposit bonus offers can still prompt traders to sign up with it.
Frequently Asked Questions (FAQs)
Listed below are a few common questions that people usually ask.
Is HYCM an ECN broker?
HYCM isn’t an ECN broker. The company matches orders internally instead of connecting with liquidity providers. Despite being a market maker, the broker stipulates a high minimum deposit compared to other competitors available around.
How soon can I start trading with HYCM?
After registration, clients need to submit supporting documents to confirm their identity. As soon as the company completes verification of your account, you can start trading with HYCM.
Can I use the hedging technique at HYCM?
Yes, the broker doesn’t restrict you from using hedging techniques. However, you may not be able to scalp with HYCM.
Does HYCM charge an inactivity fee?
Yes, the broker does charge an inactivity fee of $10. The broker keeps charging the same amount each month until you resume. The maximum grace period allowed for inactive accounts is 90 consecutive days at HYCM.
Does HYCM allow copy trading?
No, HYCM doesn’t allow copy trading in any region around the world at times.
What financial instruments can I trade with HYCM?
HYCM enables clients to explore a wide range of tradable assets, including currencies, metals, commodities, indices, and shares. Traders can develop a diversified portfolio using a single integrated account. To know the complete range of offerings, please visit the official website of HYCM.
Is it possible to lose more money than my total capital investment?
No, you can’t lose more money than your initial deposits. The broker offers negative balance protection to keep your account from going into a negative balance.
How can I avail my first deposit bonus under HYCM Ltd?
The broker automatically adds the first deposit bonus to your account as soon as you start your trading activities. At present, the broker offers a $10 deposit bonus to welcome traders on board.
What’s the minimum deposit required to start trading with HYCM?
The minimum deposit necessary to get started with HYCM is only $100. Clients can make deposits through their Client Portal. The process is as simple as following three steps as listed below;
Why should I trade with HYCM?
HYCM serves as the one-stop shop for retail traders. With its wide range of financial instruments, cutting-edge trading platforms, latest trading tools, advanced market analytics, unlimited demo accounts, and round the clock customer services, clients can have their trading needs fulfilled without looking for other options.
What base currencies are supported at HYCM?
The broker supports six different currencies. Clients can deposit their funds in U.S. Dollars (USD), Great Britain Pound (GBP), Canadian Dollar (CAD), Arab Emirates Dirham (AED), Russian Ruble (RUB), and Euro (EUR).