The financial service provider is the backbone of the entire financial market trading. The choice of broker plays a vital role in deciding the size of profit. Also, with fake firms, your money is at risk. Hence, before getting started, you should look for those firms which enhance your trading standards and fit your trading objectives. Sadly, HotForex does not stand on the expectations of traders.
The firm entirely focuses on its profit maximisation. It is visible from the unrealistic leverage offered by the broker on trading. We will discuss each point you need to know before starting your trading journey with HotForex in 2021.
About HotForex
HotForex is one of the oldest firms established in the year 2008. It has been more than ten years in the financial market still the broker has not paid attention to the improvement of its website. The website is complex, and the information seems to be overloaded with numerous facts with no authentic data to back up this information. For instance, the broker has mentioned that they have opened the live account of over 2,500,000 clients. It seems to be a fabricated number as there is no proof to back this data.
The website of the broker says that they offer leverage of 1:1000 on trade. It might lure you at one end, but it is an unrealistic number. It gives us a “warning sign” that how the firm can offer this high leverage on trading. For one second if we consider the firm might be trying something new, how can we forget that leverage is a double-ended sword, it magnifies your profits. However, at the same time, it also magnifies your losses. Various advanced and renowned firms in the market, such as TradeATF and HFTrading, much better than this.
Is HotForex Scam or safe?
It is the first and foremost point to be considered before opting for a brokerage firm. Talking about HotForex security and regulation, we cannot say anything. Some of its branches are well-regulated by central regulatory authorities while rest are authorised and licenced under some random local authorities. It leads to a mixed opinion and raises a question on the authenticity of the firm. Also, the broker does not provide additional security features and segregated account.
Minimum deposit 
Various biased reviews of HotForex capture the investor’s attention by mentioning that the broker charges the minimum deposit of just $5. But, the reality is far away from this provided data. The minimum deposit to open a trade with the broker starts from $5 and goes as high as $500 (for HF copy trading). This high minimum deposit is a serious issue which broker should pay heed on.
Leverage
As mentioned above the broker offers unrealistic leverage of 1:1000 on trade.
Types of account
Like other brokers, HotForex has not mentioned anything about gold, silver and platinum accounts on its official website. It has mentioned only six account types. The fee for each account is beyond the reach of normal traders.
1) Micro account
- Unrealistic leverage of 1:1000
- High spreads starting from 1 pip
- Simultaneous Open Orders: 150
2) Premium account
- Leverage value up to 1:500 on some trades
- High spreads starting from 1 pip
- Simultaneous Open Orders: 300
3) Zero account
- A high minimum deposit of $200
- Leverage value up to 1:500 on some trades
- High spreads
- Simultaneous Open Orders: 500 /60 Standard lots per position
4) Auto account
- A high minimum deposit of $200
- Leverage value up to 1:500 on some trades
- Variable spreads
- High spreads starting from 1 pip
- Simultaneous Open Orders: 300
5) PAMM (Premium account)
- A high minimum deposit of $250
- Variable spreads
- High spreads starting from 1 pip
- Simultaneous Open Orders: 500
6) HFCopy
- A high minimum deposit of $500 (for strategy provider) and $100 for follower
- Leverage value up to 1:400 on some trades
- High spreads starting from 1 pip
- Simultaneous Open Orders: 500
The demo trading account offered by the broker is viable for limited days.
Spreads, commission and fees
HotForex does not charge a commission on trading like other brokerage firms. However, it charges high withdrawal fees on various payment methods and high inactivity fee on overnight trade.
Trading platforms
The broker has proudly mentioned that they provide advanced MetaTrader 4 and MetaTrader 5 for trading and both are compatible with mobile and web. But, when we looked into each account’s description, we found that MetaTrader 5 is supported with one or two accounts. And it looks like the broker is trying to hide this information from users as it has mentioned this vital detail in the smallest font possible.
Moreover, the broker has not mentioned installing and uninstalling platforms and features, also it has missed an essential point, the working of these platforms.
Markets and tradable products
Unfortunately, HotForex provides limited assets for trading. More the number of tradable assets, better and diversified the trading portfolio of traders. Hence, mitigating the risk involved with trades.
Educational material
The education material seems pretty hefty and unmanageable on the platform. Therefore, fresh traders may not be able to easily grasp the materials offered. It seems that the broker does not care about educating their clients.
Customer support service
The broker offers restricted ways to contact customer support such as live chat, phone and email id. We have heard from many HotForex clients that the customer team of the broker is not efficient. The response time is high, and users have to wait long to get their queries’ solutions. Also, the support is available 24/5, that means the team will not answer your calls or entertain any queries on weekends.
Cons of HotForex
1) Doesn’t allow scalping
2) Educational material is not up to the mark
3) Unrealistic leverage of 1:1000
4) 24/5 customer support and high response time
5) High minimum deposit ranging from $5 to $500
6) Limited tradable assets
7) Inactivity charges
8) Complex user interface of the website
The Bottom Line
HotForex has been operating in the financial market for more than ten years and still lacks many basic features. The trading charges are also beyond the reach of normal traders. The unrealistic leverage and mixed regulations raise the question on the firm’s authenticity. We will suggest reading unbiased reviews about the broker and comparing it with other advanced brokerage firms and then make your final decision. Think before taking any steps because it will directly impact your hard-earned money. PrimeFin, Oinvest, TradedWell and IGM FX are some brokers that are reliable.
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Frequently asked questions
Does HotForex provide leverage on trading?
Yes, the broker offers leverage of 1:1000 on trading, but it seems to be unrealistic.
What is the minimum deposit for HotForex?
The broker’s minimum deposit is very high. It ranges from $5 to $500
What are the cons of HotForex?
The broker has the following cons:
1) Doesn’t allow scalping
2) Educational material is not up to the mark
3) Unrealistic leverage of 1:1000
4) 24/5 customer support and high response time
5) High minimum deposit ranging from $5 to $500
6) Limited tradable assets
7) Inactivity charges
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