The Importance Of Reading A Professional HYCM Review Before Forex Trading
- Regulated CySEC and FCA
- Very Good Welcome Bonus
- Different Types of Accounts
- PrimeTrader Platform
- Demo Account
There are tons of online reviews about different Forex brokers, which can give conflicting information about the actual performance and reliability of a Forex trading company. While there are genuine reviews out there, there is also a significant potential for scam reviews that are left by company employees or paid service providers. Therefore, it is imperative for traders to recognize the core differences between an authentic review and a dishonest review, which can make a world of difference in your trading.
HYCM, or Henyep Capital Markets, is a Hong-Kong based financial company that has more than 35 years’ worth of experience in different types of investments and financial products. HYCM started its FX operations almost 20 years ago and has been one of the top names in the financial industry for many years. HYCM was initially known as the HYMarkets, which also has an investment oriented service that offers an opportunity to invest in the high-performing funds managed by professional traders at Henyep Group. In this HYCM broker review, our aim is to provide a professional and thorough review of a leading FX broker that contains all the vital information about opening an account and trading with HYCM.
Is HYCM Forex Broker Regulated By A Top Regulator?
HYCM has it corporate headquarters in Hong Kong, which is regulated by the Securities & Futures Commission (SFC). However, HYCM has set up its Forex brokerages in the UK and Cyprus, which are regulated by the FCA and the CySEC respectively. Both the FCA and the CySEC are part of the European MiFID derivatives issued by the European regulators and the European Central Bank, which are designed to implement various guidelines on a safe and efficient performance of financial companies throughout the European Union. The FCA is indeed a top regulatory organization that has a strict supervisory framework for Forex brokers, which force companies to adhere to rules that are designed to protect investors from broker abuse. FCA has managed to ensure one of the lowest instances of broker scams in the entire industry, which has further solidified London’s position as the top financial market in the world.
FCA has an investor protection scheme, known as the Financial Services Compensation Scheme (FSCS), which covers a trader’s capital up to £50,000 if a broker is rendered insolvent. The CySEC also has a similar program known as the Investor Compensation Fund (ICF), which provides a lower protection to the tune of €20,000. Regardless, both of the investor protection schemes are excellent at preserving a trader’s investment against broker irregularities, which is of prime importance while indulging in FX trading for the long term. The FCA and the CySEC have also stipulated other rules for protecting a trader’s capital, which includes performing routine audits of companies, making companies accountable for their financial transactions, and directing brokers to hold their client funds in segregated bank accounts. Therefore, in terms of regulation, HYCM is certainly among the best brokers in the industry.
HYCM Forex Trading Accounts & Trading Conditions
HYCM caters to all types of retail traders by offering three different types of Forex trading accounts. Traders can choose between a Micro, Standard, and VIP accounts, all of which follow the market maker protocol with similar trading conditions. The Micro account is designed for smaller traders that allow traders to start trading with just $100. The Micro account also has the highest HYCM spreads of all HYCM accounts, with spreads starting from 2 pips on major currencies. The Standard account does offer a slightly more competitive spread of 1.8 pips for a minimum deposit of $1000, but the most cost-effective account is the VIP account that offers spreads from 1.5 pips for a minimum deposit of $10,000. Other than the spread of trading, most of the other trading conditions are broadly similar for both the Standard and VIP accounts.
The maximum HYCM leverage is also limited to 1:400 for all accounts, but the Standard and VIP accounts get free trading signals and access to 120 different financial products.
VIP accounts may not be suitable for all traders, as the minimum deposit requirement of $10,000 is too steep for ordinary traders. Nevertheless, modern traders with access to a larger trading capital will always opt for an ECN account, which is not an option at HYCM. The Micro and Standard accounts are the two popular account offerings from the broker, with a majority of the clients opting for these accounts for their trading needs.
Can You Increase Your Trading Capital With An HYCM Bonus?
Clients that deposit larger than $500 will receive an HYCM bonus of 25%, which has a maximum limit of $5000. Therefore, you can increase your account equity by a fair margin by opting for a bonus but be warned that HYCM does impose severe trading conditions on its clients. By accepting the HYCM bonus, you are liable to trade a minimum of 30 standard lots per $1000 received in bonus, which should be completed within 60 days of receiving a bonus. Since the markets are only open for around 20 days in a calendar month, a trader is expected to transact 30 lots within a two month period for every $1000 that he receives in bonus. Failure to do so will result in cancellation of the bonus amount and the removal of all profits accrued through such a bonus.
The Reliability & Performance Of The HYCM Mobile App & Desktop Platforms
Traders are offered the regular MT4 trading terminal along with the PrimeTrader platform, which assumes the responsibilities of desktop trading for the different trading accounts that are available to HYCM clients. The PrimeTrader platform is a new and innovative trading platform that was only recently launched by the company, which offers an excellent user interface and advanced features that are currently absent in the MT4. Although regular traders may choose the MT4 for simplicity purposes, the company does promote its PrimeTrader platform to its traders by promising a feature-rich interface and an aesthetic appeal.
Both the MT4 and the PrimeTrader are available as HYCM mobile apps, which can be easily accessed through the respective app stores for iOS, Android, and Windows devices. The MT4 is a reliable platform that has many years of exposure to the markets by offering a stable and top-performing trading environment for traders from around the world. The PrimeTrader platform is susceptible to some reliability issues for both desktop and mobile platforms, mainly due to the proprietary nature of the trading platform. Nevertheless, HYCM mobile trading users may switch between MT4 and the PrimeTrader mobile according to their trading preferences.
- Company Information
- Founded In: 2006
- Website: www.hycm.com
- Headquarters: London, UK
- Licences: FCA & CySEC
- Phone Support: + 44 – 208 – 816 – 7812
- Instruments: Forex, Oils, Metals, Stocks etc.
- Trading Features
- Welcome Bonus: Up to $5000
- Max. Leverage: 1:500
- Min. Deposit: $100
- Trading Signals: Yes
- Mobile Trading: Yes
- Automated Trading: No
Is An HYCM Demo Account A True Representation Of A Real Trading Account?
HYCM is a market maker account, which does have a conflict of interest between a broker and its client. Although the company has worked hard on offering an accurate HYCM demo trading account to its traders, there may be slight differences in the performance and reliability of a demo account when compared to a real trading account. Traders should always realize that a demo account is not an accurate representation of the actual market conditions, but it should only be considered as a means to test your strategies under live market scenarios. However, trading with a demo account can help you to get familiar with a trading platform and learn the rules of FX trading without risking real money.