Spreads & Commissions8/10
- HYCM is an FCA and CySEC regulated firm
- Many years of industry exposure, leading to quality services
- 24 hours customer support
- MT4 app for trading
- Does not provide ECN/STP account options
- No official bonus program
- VIP account is slightly expensive
HYCM Broker Review – Regulatory Details, Spreads, Leverage, Platforms & Bonus Options
The reputation of a Forex broker depends on the current and past experiences of actual clients that have used a company’s products and services. Therefore, there are bound to be both positive and negative reputation for a broker, especially if the company has been an active participant in the financial markets for a very long time. Regardless, the choice of a broker should only be considered after evaluating several features and characteristics, and whether they suit a trader’s inherent trading requirements.
For reliable trading services, there are mainstream brokers such as HYCM that concentrates on the quality of services, rather than outright profits. HYCM has many years of experience in the markets and puts its expertise to good use by ensuring that traders can access a reliable trading platform for their trading needs. For more information, browse through our professional HYCM review today!
HYCM has dabbled in various financial markets by offering unique products and services to meet traders’ demands since the 1970s. HYCM, also known as Henyep Capital Markets, has been involved in High Yield Investment Products, binary options, and the traditional Forex brokerage business through different brand names. However, the company has concentrated its effort on the Forex trading and brokerage market by offering a regulated and licensed product from its base in the EU.
HYCM is primarily an Asian company that has its corporate headquarters in Hong Kong. However, for the sake of improving its presence in the EU and the Middle East, HYCM has set up three more offices to operate from the UK, Dubai, and Cyprus. In effect, HYCM has regulatory licenses from four of the leading financial regulators that include the Financial Conduct Authority (FCA from the UK), the Cyprus Securities and Exchanges Commission (CySEC), the Securities and Futures Commission (SFC from Hong Kong), and the Dubai International Financial Centre (DIFC).
We are more interested in the broker’s European regulation, which comes under the European Markets in Financial Investments Derivatives (MiFID) and the European Economic Area (EEA) initiative. The European Union is now witnessing an evolution of its regulatory policies, which are putting more significant restrictions on financial transactions and the way brokers are allowed to do business in the region. Therefore, HYCM is also legally obliged to comply with the regulatory guidelines, especially while providing services to EU Forex traders.
HYCM’s international audience is taken care of by the broker’s regulatory license issued by the DIFC and the SFC, which enables the broker to cater to traders from around 170 countries. However, the broker is unable to offer its services to traders from the US, Canada, Australia, and Japan, due to the absence of regulatory clearances from these countries to operate as a Forex and CFD broker.
HYCM Asset Index
Despite being a leading mainstream broker, HYCM does not offer a full suite of tradable instruments that traders have come to expect from Forex and CFD brokers. Of course, there is a choice of over 120 financial instruments, which although impressive in its own rights, is nowhere near as elaborate as the list of financial products offered by other mainstream Forex brokerages. Let us take a look at all the different HYCM financial assets that are currently on offer:
Forex Pairs: EURUSD, USDJPY, GBPUSD, USDCHF, BTCUSD, AUDUSD, USDCAD, NZDUSD, USDHUF, USDMXN, USDNOK, USDPLN, USDZAR, USDSEK, USDTRY, USDINR, USDRUB, AUDCAD, AUDJPY, AUDNZD, AUDCHF, GBPAUD, GBPCAD, GBPJPY, GBPNZD, GBPCHF, CADJPY, CADCHF, EURAUD, EURGBP, EURCAD, EURJPY, EURNZD, EURCHF, EURTRY, NZDCAD, NZDJPY, NZDCHF, CHFJPY, US Dollar Index
Metals: SPOT GOLD, SPOT GOLD VS EURO, GOLD CFD, SPOT SILVER, SPOT SILVER VS EURO, SILVER CFD, COPPER CFD
Indices: Us 500 Index CFD, Us 100 Index CFD, Us 30 Index CFD, Uk 100 Index CFD, Germany 30 Index CFD, Euro 50 Index CFD, France 40 Index CFD, Italy 40 Index CFD, Spain 35 Index CFD, Japan 225 Index CFD, Hong Kong 50 Index CFD, China H-Shares Index CFD, China 300 Index CFD, China A50 Index CFD, India 50 Index Cfdy, Shanghai 50 Index CFD
Oil/Gas: Us Oil CFD, Brent CFD, Natural Gas CFD
Commodities: Us Cocoa CFD, Us Coffee CFD, Us Sugar CFD, Us Cotton CFD
Stocks: Alibaba, Apple, Amazon.Com, Facebook, Google, Jd.Com, Microsoft, Tesla Motors, Twitter, Vipshop Holdings
HYCM seems to have covered a majority of popular instruments from the FX, commodities, and indices, market, but the low number of stocks is what prevents traders from investing in a varied asset portfolio.
HYCM does not divulge any details about its bonus programs, probably due to the existing EU laws that have put an outright sanction on any type of free money promotions. Instead, the broker may provide you with a 25% bonus on deposit, if you are willing to open and maintain an account at its international brokerages. Of course, there are the usual loyalty programs such as trading credits, but they are not as competitive as an immersive bonus structure.
HYCM has been using a range of different trading platforms since its move to the Forex trading business. The company had utilised several third-party and proprietary trading interfaces, but constant reliability issues and trader concerns had forced the broker to consider other alternatives. Therefore, in order to streamline their services, and for better performance and reliability of trading, HYCM has started offering MT4 as its primary trading platform.
The MetaTrader4 platform is a highly popular choice among traders, and it is easy to comprehend why HYCM would adopt the MT4 as the main HYCM app for Forex trading. The MT4 apps are available as a desktop trading terminal, or a standalone WebTrader, which can be used as per the trader’s convenience. HYCM enables complete access to the MT4’s integral trading features that include EA access, custom indicator support, and flexible personalisation options.
HYCM Mobile Apps
Mobile and smartphone users can access the HYCM mobile trading platform by way of dedicated MT4 apps that are available for iOS, Android, and Windows operating systems. The MetaTrader is perhaps the best platform in the market right now that offers a convenient and reliable trading platform for tablets, smartphones, and other touch-enabled devices. Traders are given the chance of downloading the respective mobile apps or pointing their mobile browser to the MT4 WebTrader for browser-based Forex trading. Unlike some of HYCM’s immediate competitors, HYCM does not provide a proprietary mobile trading app.
HYCM Account Details
Although HYCM has all the ingredients of being a leading Forex broker, there are a few pressing concerns that may not help traders to utilise their full potential in the market. One of the primary issues with HYCM is their brokerage model, which is based on the market maker protocol. Market maker brokers utilise an automated dealing desk for transferring orders internally, which leads to a conflict of interest. The conflict of interest is largely reduced and even eliminated, by Direct Market Access (DMA) protocols such as ECN and STP. Unfortunately, HYCM does not offer a DMA account, even for its premium VIP traders.
Traders are provided with an option of choosing from three account categories, the Micro, the Standard, and the VIP account. The Micro account has the lowest HYCM minimum deposit of $100 with a maximum available leverage of 1:200. The Micro account does not make any sense from the perspective of a high-frequency trader or a scalper, as the leverage is low, the minimum deposit is slightly higher than the market average, and the number of tradable products is limited to 50 assets. The HYCM spreads for the Micro account is also comparatively higher, with major currencies quoting a market spread of 2 pips.
The Standard account has slightly better trading conditions, where the spreads are reduced to 1.8 pips, and traders get complete access to the broker’s entire range of financial products. The HYCM leverage for the Standard account remains at a manageable 1:200, but the minimum deposit requirement is substantially high at $1000. The broker also offers a VIP account option for more competitive spreads starting from 1.5 pips, but the VIP account requires a higher investment of $10,000. For most traders, the Standard account would be the best choice, but for such a high amount of trading capital, other brokers can offer a full-fledged ECN/STP account with direct market access to the liquidity providers.
HYCM Deposit & Withdrawal Fees & Funding Methods
HYCM does not charge any fees for transfers for either deposits or withdrawals, but there may be a small withdrawal fee of $30 for some wire withdrawals. In most other instances, such as depositing or withdrawing money through Visa, MasterCard, WebMoney, UnionPay, Neteller, and Skrill are completely free of cost. Deposits made through credit/debit cards and e-wallets are instant, while there is a seven-day working window for withdrawals. As always, wire transfers take longer, both for depositing and withdrawing funds.
HYCM Customer Service
The support team is available on standby 24X5, with weekends off. HYCM offers the usual customer interaction channels such as live chat, email, web contact form, and phone numbers. The broker has also set up additional satellite offices in different parts of Europe and Asia, in a bid to provide a more personalised support to its traders.
HYCM does not offer a direct market access account, but HYCM does have a highly competitive brokerage platform that can provide a secure trading experience for retail traders.
What Is The Minimum Investment For A Premium Trading Account?
The VIP account has a minimum deposit requirement of $10,000.
Does HYCM Support Mobile Trading?
Yes, HYCM offers access to MT4 mobile trading apps for Windows, iOS, and Android devices.
What Is The Maximum Leverage?
The maximum leverage for all accounts is 1:200.