HYCM Review

HYCM, previously referred to as HY Markets, is a reliable forex broker that is based in London. Since the forex broker operates in the UK, it is licensed by the Financial Conduct Authority, which is known to be a reliable and reputable regulatory organization. Formed in 1977 as part of the Henyep Group, the forex brokerage firm has been in the game for more than 40 years with 20 of these being under the FCA. This means that any investors who choose to go with this forex broker are assured of having a trustworthy organization to take care of their funds. A key feature that makes HYCM a great brokerage company is that it offers a myriad of financial instruments such as currencies, stocks and even commodities where investors can pick their preferred instruments.

Trading accounts

HYCM offers three trading account types that are meant to cater for different needs and requirements of their clients. The three include:

Classic account

With a minimum deposit requirement of about $100, this might be a suitable trading account for those who are starting out in the forex trading market. The account has a minimum trading size of 0.01 and a maximum leverage of 1:200. The spreads in the classic account starts from 1.2 pips.

Fixed account

This account also requires a minimum deposit requirement of about $100, which might also be a suitable trading account for those who are starting out in the forex trading market. The account has a minimum trading size of 0.01 and a maximum leverage of 1:200. However, the spreads in the fixed account is 1.8 pips and it is fixed.

Raw account

The raw account is slightly different with a minimum deposit requirement of about $200, which is still a suitable trading account for all types of people in the forex trading market. The account has a minimum trading size of 0.01 and a maximum leverage of 1:200. However, the spreads in the raw account starts from 0.2 pips + $4 per round.

About The Firm and Security of Funds

HYCM is a subsidiary of the Henyep Group of Companies that has a number of other companies around the world. The company in charge of HYCM is the Henyep Capital Markets (UK) Limited, which is based in the UK and is regulated by the FCA for British traders. HYCM (Europe), on the other hand, caters for the European market and is based in Cyprus. This European firm is regulated by CySEC, the main regulatory authority in Cyprus. Another related company is the Henyep Securities Limited that is based in Hong Kong and is regulated by the SFC.

Security of funds for those who invest with HYCM is really not anything to worry about. Anyone that has been in the forex trading industry for even a minute knows that the FCA, UK’s watchdog for financial firms, is widely known for its strict requirements when it comes to forex brokers. Companies that are licensed by the FCA to operate in the UK are expected to comply with a number of requirements ranging from accessing client funds, executing orders, having minimum capital requirements and even when filing financial reports. For example, all forex brokers that are licensed in the UK and allowed to operate should have at least €730 000 as proof of their financial stability.

The compensation of forex clients is also a relatively known feature of forex brokerage firms that are based in the UK. All firms that are allowed to operate in the UK fall under the Financial Services Compensation Scheme (FSCS). This scheme aims to primarily protect consumers when their brokerage firm declares bankruptcy. Clients of HYCM can expect to get a cover of up to £50,000 in the event that the company goes bankrupt. This feature is not common to all forex brokerage companies in the world with most having a consumer protection fund of 0 to $20000. A review of the HYCM comments and reviews will give you a clear picture of the brokerage company.

Trading conditions and platforms

Minimum deposit

HYCM does not require much from clients seeking to open trading accounts with the minimum deposit requirement being a meagre $100. Although this is a suitable trading account, it is still high as some FX companies such as XM require only $5 to start trading.

Leverage

The company also has a reasonable maximum leverage that reaches 1:200. While this may seem like a small amount of leverage with other companies having a maximum leverage of about 1:888 such as XM, it is imperative to keep in mind that leverage is a double edged sword. Having a higher leverage not only means that you will make more profits but that your capital has higher risks.

Spreads and commissions

As a trader in HYCM, you will have access to two types of spreads i.e fixed and variable spreads. Although the fixed spreads are much likely to be wider than the variable spreads, traders here will have a better trading environment as they have an idea of what to expect. Variable spreads, on the other hand, can swing a lot especially when there are relevant news releases.

Trading platforms

HYCM also have two types of trading platforms for its clients. These include its web-based platform (PrimeTrader) and the popular MetaTrader4. Advantages of its in-house platform include a  user friendly interface, integrated multiple pricing, online account management and even advanced information such as charts. The brokers also supports the renowned MT4 by offering both mobile and desktop versions. A key reason why traders love this platform is that it allows them to automate their trades.

Promotions

HYCM clients get a 10% on-deposit bonus once they join the company if they deposit at least $500. What’s more, the company has a scheme that pays you when you refer a friend. Although the scheme relies on the amount paid by the new client, you can get up to $250 when the initial deposit is made.

BRIEFLY ABOUT HYCM Forex

Do you seek a reputable and trustworthy forex brokerage firm? With a total experience of more than 40 years in the game, HYCM is a great company that is well regulated to offer the best experience to forex traders in Britain and around the world.