How much does it cost to trade with HYCM – Spreads & fees explained

HYCM is a well-known global forex and CFD broker and part of Henyep Capital Markets holdings group. HYCM offers CFD on various indices, commodities, stocks, cryptos, and currencies. The firm added Exchange-traded funds (ETFs) to the company’s CFD offering in February 2020. (ETFs). 

CFDs are derivative instruments that help customers bet on an item’s price without really owning it. The HYCM Group’s businesses are regulated in a number of different countries. HYCM may be perfect for traders looking for a licensed and transparent broker with over 200 forex and CFD instruments. Clients with an account can use a demo account to practice trades and strategies.

67.0 percent of retail investor accounts lose money when trading CFDs with this supplier. You should think about whether you can manage to risk losing all of your money.

HYCM spreads and fees: Introduction

The sector bid/ask spread compensates HYCM. The spreads traders pay are determined by the fundamental financial instrument and account type. The data comes from credible third-party sources that get it straight from exchange feeds. 

The corporation maintains the right to increase or decrease spreads with little or no notice, depending on market conditions. HYCM communicates exact trade charges via its trading platform in an effort to be transparent.

Online brokerages offer substantially cheaper brokerage fees than traditional brokerages. This is mainly because online brokerages’ companies can be much more easily scaled: it doesn’t matter to them whether they have 100 or 5000 clients from a strictly technological aspect.

Spreads 

Although commission-free trading is available with the Fixed and Classic account types, the spreads are excessive. Fixed spreads of 1.8 pips are available on the Fixed account, whereas the Classic account has a minimum (variable) spread of 1.2 pips. 

The Raw account, on the other hand, has a relatively competitive price structure (spreads), with a minimum spread cost of 0.2 pips and a 4 USD charge for each round lot (round).
Clients with very consistent trading methods should open a Fixed spread account, while those experimenting with different trading styles should open a Classic account.

The broker gets the client’s information from reputable third-party sources, which get the spreads information from exchange feeds. The firm then reserves the right, on very short notice, to increase or lower the spreads based on market conditions.

Corporate actions such as indexes, dividends, and mergers have an impact on the stock, ETF trading, and cryptocurrency CFDs. Still, there is no extensive information on the HYCM’s website on how this market maker (HYCM) analyzes them. Wider HYCM spreads are available for investors who desire to close their positions at a specific price.

Account types	Fixed Spreads
Fixed Account	1.8 pips
Classic Account	1.2 pips
Raw Account	0.2 pips

(Risk warning: 72% of retail CFD accounts lose money)

Commission and charges

For maintaining an account with HYCM, you must pay a variety of fees. Inactivity fees, withdrawal costs, commission fees, and so on are all examples of these.

When you add money to your account, there are no deposit fees.
Withdrawals conducted through Neteller or Skrill are exempt from the withdrawal charge. If the withdrawal value exceeds USD 5000, the fee is charged.

Suppose your account has been inactive for more than 90 days. There is also a $10 monthly inactivity fee.

The amount of commission charged is determined by the user’s account type. One can choose from three different types of accounts.
Spreads vary by account type and start as low as 0.2 pips in the market.

Commission plans

The amount of money you pay in HYCM brokerage fees is determined by your chosen plan. A fixed account, definitive account, and raw account are the three different plans available.

Users with a deposit of at least $100 can open a fixed account with fixed spreads of 1.8 pips. Trading via this account does not incur any commission fees.

Classic accounts are the second type of account. On a minimum deposit of $100, the spreads in this account are floating and start at 1.2 pips.
This account, once again, has no associated commission fees. 

The Raw account is your third option. This account has a $200 minimum deposit requirement. Spreads start at 0.2 pips with this account. However, there is a $4 round turn commission fee on this account.

Trading fees

Trading fees at HYCM are modest, making it acceptable for you and everyone else to trade frequently (often a week). Trading fees for CFD providers are pretty difficult to compare. What did we do then? Rather than quoting long fee tables, we evaluated brokers by estimating all fees associated with a hypothetical trade involving three assets.

We chose the following assets judiciously and arbitrarily for assets:

• Apple, a well-known American corporation
• Vodafone, a major European corporation
• EURUSD, a well-known currency pair

In this case, buying a position, holding it for one week, and then selling it would be an example. For the volume, we chose a $2,000 stock position and a $20,000 EURUSD position.

All brokers’ spreads, charges, and financing expenses are included in this super-all-encompassing benchmark. After holding the trade at 5:1 leverage for a buying order of $2000, the benchmark fee for Apple and Vodafone at HYCM was $4, while at other firms, it went between $5-7. Speaking of the EURUSD currency pair at the leverage of 30:1, the benchmark fee was the lowest at HYCM ($7). 

(Risk warning: 72% of retail CFD accounts lose money)

Financing rates

The interest rates on HYCM loans are very low. Financing expenses can be high if you wish to trade on margin and keep your holdings for a long time.

Conversion fees

All trades on commodities denominated in a currency other than the currency of your account will be subject to a Currency Conversion Fee from HYCM. This is how the fee is calculated: A mark-up is added to the exchange rate obtained from liquidity providers. For our calculations, we used EURUSD trading fees.

Non-trading fees

When it comes to non-trading fees, HYCM falls somewhere in the middle. As a result, specific non-trading fees are hefty, while others are modest or not paid at all.

Non-trading costs at HYCM comprise a variety of brokerage fees and expenses that have no connection to the purchase and sale of assets. Withdrawal costs, deposit fees, inactivity fees, and account fees are all examples of non-trading fees.

Deposit fees

When you transmit money from your bank account to your trading account, there are deposit fees. HYCM is no exception: you will notice the equivalent amount on your brokerage account that you spent using any of the deposit methods HYCM supports.
Investors can fund their retail investor accounts with the following payment options, depending on their place of residence:

• Wire Transfer
• MasterCard or Visa
• Electronic wallets such as Neteller, Skrill, WebMoney, China UnionPay, and Interac
  

To begin trading on the site, you’ll need to make a $100 initial deposit. Following that, a minimum deposit is $20, which may be made using Visa or MasterCard, as well as the numerous e-Wallets that are supported. Deposits made with credit cards and e-wallets are processed almost instantly, allowing for a one-hour turnaround.

HYCM’s minimum deposit (if traders would like to deposit funds by wire transfer) is $250; however, unlike rapid payment alternatives like cards and e-wallets, wire transfer payments can take up to 7 business days to process.

(Risk warning: 72% of retail CFD accounts lose money)

Withdrawal fees for clients

HYCM does not charge a withdrawal fee, unlike most online brokers we’ve looked at. This implies the money you moved from your brokerage account will appear in your bank account in an identical amount.

Choices for withdrawal

The money is returned to the client’s source of funding for their retail investor accounts, the broker. If customers prefer to withdraw funds via wire transfers, the funds will be credited directly to their bank accounts.

In contrast to a fixed minimum deposit value, there are no withdrawal minimum standards set by the broker, and minimum limits are determined by the withdrawal methods chosen by the users.

Visa, MasterCard, And E-Wallets

The withdrawal limit is $20, with a 1% fee applied to withdrawals of $5,000 or more made using Skrill and Neteller.

Wire transfer

Withdrawals of less than $300 are subject to a $30 withdrawal fee.
Investors can find extensive information on deposits and withdrawals, as well as the identities of bank executives, on the broker’s website’s banking section.

In some situations, HYCM may seek traders’ credit card information in order to expedite their withdrawal requests and avoid forex scammers.

The majority of withdrawal demands on the HYCM platform are accepted within one business day. Still, depending on the bank’s extensive security checks, it may take up to seven business days for the money to appear in the trader’s account.

(Risk warning: 72% of retail CFD accounts lose money)

Brokerage fees 

According to research, HYCM charges very cheap CFD and FX trading fees; in most circumstances, clients are not charged any deposit or withdrawal fees, except in some cases where a specified amount of withdrawal fees applies. Retail forex traders are charged a $30 withdrawal fee on bank wire transfers under $300. 

Withdrawals made using Neteller and Skrill exceeding $5,000, however, are subject to a 1% withdrawal fee. Withdrawals made through other ways are not subject to a deposit fee.

The trading fee charged by a broker is generally determined by the account types chosen by clients and the underlying trading instruments transacted on the platform, all of which have different trading fees, spreads, and commissions. To learn more about its fee structure, see here.

Account types and fees Associated

HYCM offers three different types of accounts to accommodate every trader’s level of experience and trading style when using the HYCM platform; whether you’re a beginner, a corporate trader, or a professional trader, HYCM has an alternative for you. The following sorts of accounts are available on HYCM for traders:

(Risk warning: 72% of retail CFD accounts lose money)

#1 Fixed account

The minimum deposit for an HYCM fixed spread account is $100. Fixed Spread 

Accounts are a good option for UAE retail clients who trade in small amounts. The fixed spreads account model has a somewhat more extensive spread (1.8 pips), indicating that trades will be subject to commissions.

Traders can open a commission-free fixed spread account with HYCM; however, the automatic trading option is no more in this account, which is another disadvantage. Traders with fixed accounts do not have access to EAs (economic advisors).

#2 Classic account

Traders with a minimum value of 1.2 pips can use the Classic spread trading accounts, which offer variable spreads. The HYCM minimum deposit required to open a Classic account is 100 USD, with a minimum trade volume of 0.01. 

The Classic account type, in comparison to the fixed account type, allows for automated trading solutions. Clients with dedicated EA can benefit from Classic accounts.

#3 Raw account

Raw spreads begin at 0.2 pips and increase by 4 USD per round. The minimum deposit necessary to open a Raw Spread account at HYCM is 200 USD, slightly higher than the other two account types.

However, the minimum trade volume is the same as the other two accounts, which is 0.01. Raw account holders are issued with EAs. All three spread account types have an Islamic account option, but the VIP or Corporate spread accounts are only available to high-frequency asset managers. The trading requirements for each of these spread account types, however, differ depending on the legislation of the various jurisdictions. 

Clients should, however, conduct their thorough research before choosing any sort of spread account.

Account Types	Minimum Deposit	Spreads
Fixed Account	$100	1.8 pips
Classic Account	$100	1.2 pips
Raw Account	$200	0.2 pips

(Risk warning: 72% of retail CFD accounts lose money)

Bonus

“New clients can take benefit of the 10% initial deposit bonus because HYCM Limited is offshore.”

New clients can benefit from the 10% first deposit bonus because HYCM Limited is based offshore. To be eligible, customers must deposit at least $100 and trade 30 standard lots within 60 days for every $1,000 bonus received. There is a $5,000 maximum incentive.

Because of regulatory limits, the HYCM companies (FCA and CySEC) do not give any bonuses or promotions.

*Security- An insurance to your money

To guarantee the safety and protection of its clients’ money and data, HYCM employs cutting-edge security measures. Furthermore, all client data is protected using 128-bit SSL certificates given by VeriSign. Unlike some CFD brokers, all links between HYCM’s servers and its customers are protected and encrypted according to industry standards.

Being regulated by the FCA and CySec (Cyprus Securities and Exchange Commission) gives clients additional security benefits; CySec offers customers a fund called the Investor Compensation Fund, which compensates clients with €20,000 if HYCM fails.

Similarly, the Financial Conduct Authority (FCA) of the United Kingdom gives an insurance known as the FSCS, or Financial Services Compensation Scheme, which covers them up to £85,000 in the event that HYCM fails.

*To avail the loss of your money, visit the official website of HYCM for Terms and Conditions.

Conclusion: Low fees and commission on HYCM

If you are looking for a reliable forex and CFD broker, you should go for HYCM. Being a multi-body regulation that works on MT4 and MT5, it offers a fair spread and deposits. Not only that, it has various account types as per its traders’ interests.

Click here for a detailed PDF of costs and charges at HYCM.

(Risk warning: 72% of retail CFD accounts lose money)

FAQ – The most asked questions about HYCM fees :

(Risk warning: 72% of retail CFD accounts lose money)

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Last Updated on January 27, 2023 by Arkady Müller