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 an award-winning forex and commodities broker. Established since 2010, the company provides trading services and facilities to both retail and institutional clients. For more than 9 years in business, HF Markets has around 1,500,000 live accounts opened and 200 employees globally.
Based on its services, HF Markets can be regarded as middle-class category. Clients do not need to prepare a big deposit for joining to trade with this broker. Also, there are various account types, trading software, and tools to facilitate individuals and institutional customers to trade forex and CFD online.
HF Markets is a registered brand name of HF Markets (Europe). Based on the location, the company is regulated by various financial regulators. Here are the details:
- HF Markets (SV) Ltd, registered in St. Vincent & the Grenadine as an International Business Company with the registration number 22747 IBC 2015.
- HF Markets (Europe), authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) with Licence Number 183/12.
- HF Markets SA (PTY), is authorized and regulated as a Financial Service Provider (FSP) by the Financial Sector Conduct Authority (FSCA) in South Africa, under license number 46632.
- HF Markets (Seychelles), incorporated under the laws of the Republic of Seychelles with registration number 8419176-1, regulated by the Seychelles Financial Services Authority (FSA) under Securities Dealer Licence number SD015.
- HF Markets (DIFC) Ltd, authorized and regulated by the Dubai Financial Services Authority (DFSA) under license number F004885.
- HF Markets (UK) Ltd, authorized and regulated by the Financial Conduct Authority (FCA) under firm reference number 801701.
If traders have more experienced, knowledgeable, and sophisticated trading environment, they can join to become Professional Clients, who can manage and assess their own risks. For that reason, these kinds of clients are granted access to more favorable rates but afforded lesser regulatory protections than retail clients.
Trading with HF Markets can enable traders to access a variety of trading instruments like CFDs on Forex, Cryptocurrencies, spot metals (gold, silver, and others), energies (oil and gas), commodities (such as coffee, copper, and sugar), indices, bonds, and popular shares such as Google, Apple, and Facebook.
HF Markets offers some of the tightest spreads in the market, starting from 0 pips in Zero Account. This broker quote major foreign exchange currency pairs to five decimal places. Therefore, traders have the opportunity to get more accurate pricing and the best possible spreads.
HF Markets receives numerous highly prestigious titles, including the huge honor of being ed to join the ranks of the World Finance Top 100 Global Companies. Others are Best Client Funds Security Global by Global Brands Magazine, Best Global Forex Copy Trading Platform by Global Forex Awards 2019, Fastest Growing Forex Broker Mena 2019 by International Business Magazine, and many more.
After opening an account in HF Markets, traders will obtain various forex trading platforms to accommodate all of their trading demands. Whether traders like to trade on desktop or prefer to trade on-the-go, they can use MetaTrader 4 on desktop (terminal, multi-terminal, and web terminal) and phone (iPhone, iPad, and Android).
Clients' funds are held in segregated accounts. Only major banks are used by Markets because they believe that successful traders have to give their full attention to their trading rather than worrying about the safety of their funds.
Traders do not need to worry about transaction fees when depositing and withdrawing. Transaction fees are not charged, and diversity of payment methods enable them to choose between Wire Transfer, Bank Card, and online payments (Neteller, iDeal, Sofort Banking, and Skrill). HF Markets ensures that traders make fast transactions 24/5 during the standard hours.
Traders can earn extra income by joining the affiliate program offered by Markets. Clients who join this program will get some advantages, such as 60% of Net Spreads based on the volume traded by sub-clients, up to $15 per a lot of net revenue, and many more. More information about HF Markets can be obtained on their official website which is supported in 27 languages.
From the review above, it can be concluded that HF Markets is one of the award-winning forex and commodities brokers. There are various account types traders can choose in HF Markets, and the broker itself becomes a favorite among traders for its low spreads. This condition is very suitable for traders with limited funds and a desire to get more opportunities to gain maximum profit.
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. To explore the issue, you can hop on "Defining the Best Forex Broker: Spread Vs Execution".
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.