HF Markets offers a Zero Spread Account that enables traders to open trades with raw spread from leading liquidity providers. But, is it ideal for beginners?
Typically measured in pips, spread in forex trading refers to the difference between the bid price and the ask price. When trading in financial markets, spread is always present, even if the number is very small or even zero. Therefore, it's highly crucial to be aware of spreads when trading as it affects the trading cost that you may incur.
Beginner traders are usually advised to start with a demo account because there are no risks involved. It is indeed a great place to practice and get familiar with the trading platform. But in order to make actual money, traders need to switch to a live account. If you are looking for trading with low spreads, you might want to try the Zero Spread Account offered by HF Markets. Here's everything you need to know about it.
What is Zero Spread Account?
A Zero Spread account provides no difference between the bid and the ask price in its pricing. In other words, the spreads on average are zero or close to zero. This makes it easier for traders to calculate their trading costs and determine their entry and exit levels when they open positions. It is particularly suitable for traders that prefer trading with fast execution speed and flexible adjustments. Since the spread is zero, traders can quickly adjust their positions without getting an additional loss that might be the result of price fluctuations.
However, it is worth noting that zero spread does not come for free. Like any other business, brokers need to gain income from their clients to survive and make improvements to their service. So, in exchange for the extremely low spread, zero spread brokers typically charge commissions per lot whose amount varies from broker to broker. It's important for traders to fully understand the pricing scheme of the broker when calculating their final trading cost.
HF Markets Zero Spread Account
HF Markets is a well-established global broker that has been around since 2010 and is currently regulated under several top-tier authorities including CySEC (Cyprus), FCA (UK), DFSA (UAE), FSA (Seychelles), FSA (St. Vincent & Grenadines), FSC (Mauritius), and FSCA (South Africa). The broker is known for providing favorable trading conditions as well as innovative features suitable for all kinds of traders in the world. For beginners, HF Markets also offers free educational materials that consist of video tutorials, live webinars with expert traders, eCourse in Forex, and many more.
HF Markets is one of the few brokers that offer a Zero Spread account along with five other account types. The Zero Spread account is an accessible, low-cost trading solution that enables the holder to trade with raw, super-tight spreads as low as 0.0 pips offered by leading liquidity providers with no hidden markups. It uses a transparent commission-based structure with commissions starting from $3 per 1 lot traded. There are several asset classes that are available for this account, namely forex, indices, commodities, and shares.
In addition, it supports some features such as hedging strategy, Expert Advisors, trailing stop, pending orders, one-click trading, mobile trading, and automated trading. This account is claimed to be suitable for any type of trader especially scalpers, high-volume traders, and traders who use EAs.
If you want a simpler explanation of HF Markets' Zero Spread, take a look at the table below.
|🔢Spreads||Starts from 0.0 pips on Forex|
|💻Trading Platforms||MetaTrader 4, MetaTrader 5, WebTrader, Mobile Trading|
|💸Commissions ||Starts from $3 per 1 lot|
|📈Minimum Position Size||0.01 lots (1,000 units of base currency)|
|📉Maximum Total Trade Size||60 standard lots per position|
|💵Account Currency||USD, EUR, NGN, JPY|
As for the commission, HF Markets offers these two structures:
Commission Structure 1
Commission Structure 2
Pros and Cons
If you are interested in opening a Zero Spread account, there are several things that you must consider beforehand.
- Low spread and low commission. Zero Spread offers super tight spreads and low commissions, making it an excellent choice for traders who use spread-sensitive strategies, such as scalping and day trading.
- Change direction easily. Changing the direction of your open positions can be expensive at times, but the Zero Spread account allows you to do that without additional costs, so it's a lot easier and cheaper.
- Access to live market spreads. With the Zero Spread account, you will get access to live market spreads from leading liquidity providers without any additional markup.
- Zero spread does not mean zero cost. Forex brokers must cover their expenses and keep the business going, so they will find other ways to earn their bucks from you. In this case, HF Markets might require larger deposit requirements and tighter margin calls in their Zero Spread account.
As mentioned earlier, HF Markets' Zero Spread account is particularly useful for scalpers, high-volume traders, and traders who trade with EAs. It can be used for beginners, but it's mainly recommended to professionals and experienced traders as it requires a deeper understanding of financial markets and the trading process itself.
All in all, Zero Spread accounts can make sense if your trading strategy is spread-sensitive, but it certainly has its own challenges and difficulties. Remember that while spreads are a crucial factor in determining your trading costs, there are other things that must be considered as well, like per-trade commissions and the broker's execution speed. Trading with a broker that uses a questionable execution method or charges a high commission might cost you even more, even if the spreads are extremely low.
HF Markets is a global Forex and Commodities broker that facilitates both retail and institutional clients. Previously known as HotForex in the brokerage industry, HFM has positioned itself as the forex broker of choice for traders worldwide through their various account types and trading tools. Furthermore, HF Markets allow scalpers and traders use Expert Advisors unrestricted.