HotForex fees and costs – Spread comparison

HotForex spreads and fees are an interesting thing to know about the broker if you intend to trade with them. The trading fee structure of an online broker is one of the factors you have to consider in broker selection. Out there, HotForex is one of the brokers with favorable and trader-friendly fee and charge structures. Thus, it is one you should go for. Here, we outline the fee structure so you can know what you are getting into.

Introduction to HotForex:

HotForex was established in 2010 with its headquarters in Cyprus. Yet, in addition, it serves several global offices including Dubai, South Africa, and also offshore entities in St Vincent and the Grenadines. Because HotForex shows great interest in traders mainly in the African, Asian, Middle East, and European regions, it is indeed a global broker.

Currently, there are more than 2 million live accounts opened with the broker, along with multiple Industry awards and sponsorship. HotForex has bagged awards such as the Best Clients Funds Security Broker, Best Forex Provider, Top 100 Companies, amongst others.

HotForex official website

HotForex official website

Overview: These fees can occur with HotForex: 

  • Spreads
  • Commissions
  • Overnight fee (swap)
  • Inactivity fee

(Risk Warning: Your capital can be at risk)

Hot Forex available markets and costs

With HotForex, you can trade over 1000 financial assets through that single trading account. In terms of the diversity of instruments and the number of trading opportunities, the options you have with Hot Forex are almost unlimited. Each financial market has different characteristics and trends, and you have to pay attention to that. Don’t forget that individual instruments are grouped under one market.

The available financial markets on HotForex MT4 and MT5 are Forex, Precious Metals, Energies, Stocks, Stock indices, Bonds, Commodities, DMA stocks, ETFs, and Cryptocurrency.

We outline them below:

Forex

Forex currency pair is obviously the most popular market to trade. Forex market is, by far, the largest financial market in the world, doing over $6 trillion daily. And with HotForex, you can take part in this market directly through its HotForex MT4 and MT5 trading platforms. On HotForex MT4 and MT5, you can trade major, minor, and exotic currency pairs.

  • Spreads from 0.0 pips + $ 3 commission per one traded lot (Zero Spread account)
  • Spreads from 1.0 pips and no commissions (all other account types)
  • Overnight fee depending on the asset and position size (Swap values in points)

Forex

Energies and Metals

Precious metals such as gold and silver are also very popular financial products. On HotForex MT4 and MT5, you can trade Gold, Silver, Platinum and Palladium via CFD. These 4 precious metals can be great for portfolio diversification. This diversification is important because you can make a profit on other markets by using the same trading strategy when your trading strategy fails to make a profit with particular markets.

  • Gold 0.29 points
  • Silver 0.03 points
  • Palladium 11.4 points
  • Platinum 4.31 points
  • Swap values in points (depending on the asset)

CFDs on Stocks, Index, and Bonds

HotForex offers derivatives trading on the stocks of the world’s most important companies with low margin requirements and costs. Along with hundreds of stocks on HotForex MT4 and MT5, you can also trade derivatives on the world’s leading indices and explore opportunities on bonds issued by big countries and companies. You can do all of these by dropping just a fraction of what is required.

  • Ger30 1.41 points
  • USA30 2.57 points
  • UK100 2.03 points
  • JPN225 9.3 points
  • USA500 0.41 points
  • Swap values in points (depending on the asset)

Commodities

On HotForex Mt4 and MT5 trading platforms, you can also trade commodities. They are the soft commodities that you may feel very familiar in your daily life such as US Cocoa, Coffee, Copper, US Cotton, and Sugar. With HotForex, you can participate in the market of these commodities to diversify your portfolio by trading Derivatives on the world’s most popular soft commodities.

  • Cocoa 9.0 points
  • Coffee 0.98 points
  • Copper 0.008 points
  • Cotton 0.28 points
  • Sugar 0.06 points

DMA Stocks

Direct Market Access (DMA) stocks are a new introduction to CFDs trading and a fresh category on HotForex MT4 and MT5. Stocks’ DMA allows you to place your trades directly on the order books of global stock exchanges without going through all the formalities that you will normally have to go through. HotForex is one of the few brokers in the world that lets you trade DMA Stocks.

  • Floating spreads depending on the exchanges
  • If you use leverage there is an overnight fee depending on the asset

ETFs

You don’t always have to get CFDs to trade ETFs but Hot Forex gives that to you. With HotForex, you can trade a wide range of ETFs from around the world. There are many sectors you can trade-in. On HotForex, you can trade ETFs from Aerospace & Defense, Basic Materials, Commodities, Consumer Discretionary, Consumer Staples, Currency, E-Games/Sports and betting, Energy, Real Estate, Technology, Telecommunications, and much more. ETFs can be the most popular and cost-effective way to diversify across several markets, sectors, assets, and commodities.

  • Floating spreads depending on the exchanges
  • If you use leverage there is an overnight fee depending on the asset

Cryptocurrencies

Cryptocurrencies are simply the newest financial markets and the value of the overall market is expanding rapidly every now and then. With HotForex, you can trade Cryptocurrencies in pairs with other currencies. In the case of HotForex, you don’t need to open a Crypto account or own the actual Cryptocurrency, but you can solely speculate on the price movement of Cryptocurrency pairs with high leverage.

In short, you will be trading the derivatives on popular cryptocurrencies including Bitcoin, Ethereum, Ripple and Litecoin on HotForex MT4 and MT5.

  • BTC 26.0 $
  • ETH 3.0 $
  • XRP 0.014 $
  • LTC 2.0 $

Cryptocurrencies

(Risk Warning: Your capital can be at risk)

Aditional HotForex fees

The fees you get to pay on Hot Forex have broadly divided into 2: Trading fees and Non-trading fees.

  • Trading fees are charged every time you place a trade. They include spreads, commissions, overnight and rollover fees, and currency conversion fees.
  • Non-trading fees are not directly related to trading, but you should consider them as they make up the cost of using a certain broker. They include payment fees and inactivity fees.

The trading fees that apply to you are dependent on the particular market/instrument you are trading.

Forex fees

If you are trading currency pairs on HotForex, you will be charged the following commissions:

Zero Spread account holders that trade major currency pairs will be charged $6 per lot round turn, whereas those who trade other pairs (minors, exotic) will be charged $6 per lot round turn. PAMM Premium Plus account holders, regardless of the type of trading currency pair, will be charged a $10 round turn for every lot. Other accounts charge traders no commissions whatsoever.

Stocks and index fees

Our team examined the fees and commissions for stock CFDs and found out that HotForex applies a 0.1% commission charge to every stock trade, regardless of the individual share. As for spreads, these start as low as 0.012 pips, although can reach up to around 1.6 pips.

When it comes to indices, the broker charges a $1 round turn commission on every lot opened. Spreads on indices are also variable and range from a minimum of 0.04 pips to a maximum of 11.3 pips.

Other CFD fees

To give you an idea of fees charged for other asset classes at HotForex, the below summarises what you have to pay:

  • There are no commissions on metals or energies and spreads range from 0.01 to 11.4 in quote currency per unit.
  • Cryptocurrency trades are charged a $1 commission per round lot turn. Spreads range between 0.0006 and 30.0 in quote currency per unit.
  • Bond CFDs, on their own, carry no commissions and have tight spreads from 0.05 to 0.08 in quote currency per unit.

Non-trading fees (inactivity fee)

One of the biggest advantages of trading with HotForex is that there are no fees from the broker on deposits or withdrawals, no matter which payment method you use. If your transaction is over $100, HotForex will also cover any commissions or fees your bank or payment provider charges.

HotForex does, however, charge an inactivity fee on all accounts that remain dormant for more than six months. If your account is unused for between six months and one year, a $5 fee is charged. This increases to $10, $20, and the previous year’s fee + $10 per month for inactivity periods of 1-2 years, 2-3 years, and over 3 years respectively.

Leverage

While trading with HotForex you can operate with fixed or floating leverage, which is indeed a very useful tool, especially for traders of smaller size. Leverage brings an opportunity to increase your potential gains through its usefulness to multiply your capital multiple times. Still, remember that leverage may work in reverse too, by boosting your risks. That is why it’s so important to understand how to use it smartly.

HotForex offers various leverage levels from the “modest” one as determined by European regulations and various other measures, and up to very high ratios. The leverage you get is largely determined by the regulator under which you fall. For instance, with European brokers that follow the ESMA regulation, the maximum leverage ratio is set to 1:30 on Forex instruments, and 1:25 for Spot Metals.

South African traders may access leverage of up to 1:200. Higher leverage ratios like 1:400, 1:500 or even 1:1000 are offered through HotForex offshore entities.

HotForex demo account

We really cannot overstate how important a demo account is to a trader. That is, no matter their level of competence. Thus, one of the things you have to look out for from any forex broker is a demo account. Hot Forex provides traders with a $100,000 demo account. This is one the very best deals you can get in the forex brokerage space.

How to open the Hot Forex Demo Account:

  1. Go to the HotForex Demo Account Sign In page. This can be accessed directly from the official website.
  1. If you are a new client, you have to sign up. You have to enter your personal information, including First and Last Name, Country of residence, email, phone, etc. (If, in case, you are an existing client just sign in).
  1. Fill in all required information for initial registration on myHF.
  1. An account will be approved almost immediately, where through your client area you can get access to New Demo Account, as well as the live account.

Conclusion on the HotForex fees

We should note that a broker essentially earns its money from the fees it charges its traders. But the fees can be exorbitant or discouraging at times. As such, you should go for brokers that don’t extort you. HotForex is one of them.

The fees for CFD and indices trading are average and not the best choice but if you want to trade currencies HotForex is the right broker for you. Especially using the Zero Spread account you will have a good cost and fee advantage.

(Risk Warning: Your capital can be at risk)