HYCM (formerly HY Markets) is a large forex broker offering trading more than 100 financial instruments: wide range of currency pairs, various CFDs on indices, commodities, stocks and precious metals, available on MT4 and its proprietary web platform. The company also offers binaries trading service through its HY Options brand.
Set up 35 years ago, the Henyep Group is a global conglomerate with various business activities spanning 3 continents and 20 countries world-wide. It operates out of its offices in London, Dubai, Hong Kong, Kuwait and Cyprus.
HYCM forex broker is operated by Henyep Capital Markets UK Ltd., a London-based company authorised and regulated by the UK Financial Conduct Authority (FCA). Besides, it has a Cypriot unit, regulated by the CySEC, and a subsidiary based in Hong Kong, that is duly licensed by the local regulator – the SFC.
UK’s financial watchdog is famous for applying strict requirements to brokerage firms. Licensed companies are required to comply with certain rules and procedures covering client funds, order execution, minimum capital requirement, regular report filing, etc. UK-based brokers are obliged to hold at least €730 000 in order to prove their financial stability. The same minimum capital requirement applies to Cypriot brokerages.
In relation to security of clients` funds, we would also like mention that FCA-regulated companies fall under the umbrella of the Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person, in case the company goes bankrupt. In Cyprus, the coverage is up to $20 000 per investor.
This broker offers three basic account types, depending on the initial deposit: Mini, Standard and VIP. They all offer leverage up to 1:200, fixed spreads and the opportunity to trade in micro lots. Keep in mind that Trading Signals is not available to Micro account holders.
Besides, clients of HYCM who don’t want to earn interest for religious reasons may opt for Islamic accounts, which are swap-free.
Minimum Initial Deposit
Traders are required to deposit just $100 in order to open an account with HYCM, which is an average minimum initial amount. However, other EU brokerages require less – XM, for example, which also holds licenses from both CySEC & FCA, demands $5.
Average Spreads & Commissions
HYCM is a fixed-spread forex broker, and like most of them, charges no commissions. Fixed spreads are generally wider than variable ones, but offer traders a more predictable trading environment and protects them from wild spread swings which usually happen during news releases.
In fact, the spreads offered by HYCM are quite competitive, amounting to 1.8 pips on EUR/USD on Standard and even on VIP accounts. On average, fixed spreads amount to 2 – 3 pips.
The maximum leverage levels with HYCM reach 1:200, which is considered a high ratio, however many other brokers provide similar or higher levels: XM, for instance, offers leverage up to 1:888.
Nonetheless, keep in mind that leverage is a double-sided coin: higher leverage involves higher risk, not only the probability of multiplied profits earned on a small deposit.
HYCM offers two trading platforms: its in-house web-based PrimeTrader and the renown MetaTrader 4.
PrimeTrader is a new multi-asset web platform with user-friendly interface and provides integrated multiple pricing, advanced charts and complete online account management. Guaranteed Stop/Loss are available.
The MT4 is also supported by this broker, desktop, and mobile versions being offered. This platform is preferred by most traders, because it allows clients to fully automate their trades by Expert Advisors (EA) and let the program do all the work. What is more, it offers a number of technical indicators and advanced charting package.
MT4 allows trading signals, but HYCM has partnered with Pro Daily which brings investors cutting-edge signals trading service.
HYCM offers a welcome on-deposit bonus of 25% (up to $5000) to all live account holders with deposits of at least $500. For every $1,000 bonus awarded, clients will be required to trade 30 standard lots within 60 days. The broker also offers a Refer-a-friend scheme. Depending on the amount of the initial deposit of the referred client, the referrer can get up to $250.
Methods of Payment
HYCM`s clients are able to make deposits and withdrawals via credit/debit cards (Visa or Mastercard), wire transfer, Skrill and WebMoney.
HYCM oﬀers trade accounts with base currencies in USD and EUR. Deposits are also accepted in KWD, SAR and AED and will be converted to USD for trading.
Being part of a large international group with more than 30 years of experience in the industry, HYCM is a reliable broker with strong regulation. Our main concern with this broker is that it uses a Market Maker model and there may be conflict of interest between the company and its clients.
HYCM Review Conclusion
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