HFM Zero Spread Account Review - Pros and Cons

HFM is an international forex and CFD broker that has earned a reputation for catering to traders with diverse needs. It offers a variety of trading accounts from which traders can choose. These include the Premium, the Cent, the Top-up Bonus, the Zero, the Pro, and the Pro-plus accounts. 

Among these accounts, the Zero Spread Account stands out as a feature-rich choice for cost-conscious traders looking for tight spreads and transparent pricing. In this HFM Zero Spread account review, we will explore these account’s features, benefits, and potential drawbacks to help traders decide if it aligns with their trading goals.

69% of retail investor accounts lose money when trading CFDs with this provider.

Overview of the HFM Zero Spread Account

The HFM Zero Spread Account is designed to provide traders with access to the forex and CFD markets at ultra-tight spreads. This account may be best suited for scalpers and high-volume traders who prioritise cost management in their trading strategies. This account offers raw spreads from interbank liquidity providers with no markup but charges a commission on trades. The spreads on the HFM Zero Account are as low as 0.0 pips and the commission charged is $3 per side per lot. Interestingly, this account does not have a minimum deposit requirement, making it accessible to all kinds of traders. 

Importantly, this account supports a deep collection of market products including CFDs on forex, metals, energies, commodities, indices, cryptocurrencies, stocks, ETFs, and bonds. The account uses the market execution model which fulfils orders at the best available price in the market. This leads to fast order execution and no requotes.

Further, HFM does not impose a minimum deposit requirement on this account. This means that traders can invest whatever they wish. The account offers swap-free trading on some market instruments, making it suitable for traders who hold positions for extended periods. This is available to all traders including those who do not observe Islamic financial principles.

There are a ton of base account currencies supported on this account including USD, EUR, JPY, NGN, ZAR, KES, and INR, among others.

Pros of the HFM Zero Spread Account

• Ultra-Tight Spreads - The most significant advantage of this account is the availability of raw spreads starting from 0.0 pips with no markups. This is especially beneficial for strategies like scalping and day trading, where even small spread differences can significantly impact profitability.
• Transparent Pricing - HFM’s fixed commission structure ensures traders know exactly how much they will pay per trade. Traders are charged a clear and upfront commission per lot. This transparency makes it easier to calculate potential costs and manage risk effectively.
• Wide Range of Supported Instruments - The Zero Spread Account offers access to over 1,000 trading instruments, including CFDs on forex, metals, energies, commodities, indices, cryptocurrencies, stocks, ETFs, and bonds.
• Fast and Reliable Trade Execution - The market execution model used on this account ensures that trades are executed at the best available price preventing re-quotes.
• Advanced Trading Platforms - HFM supports several industry-leading trading platforms including MT4, MT5, and its own HFM Trading Platform.
• Competitive Commission Rates - HFM offers competitive commission rates on its Zero Spread Account compared to some other top brokers. This makes it an attractive option for cost-conscious traders.

Cons of the HFM Zero Spread Account

• Commission Fees - While the tight spreads are appealing, traders need to factor in the commission charges. These can quickly add up for high-volume traders. 
• Potential Slippage - Market execution executes trades at the latest price on the market even when it's different from the one seen at the time of placing the order. This price slippage can be an issue for some traders.
• Complexity for Beginner Traders - The commission-based structure and focus on raw spreads may be intimidating for novice traders who are unfamiliar with such pricing models. Beginners might prefer the simplicity of standard accounts with all-inclusive spreads.

Who Should Consider the HFM Zero Spread Account?

This account is particularly well-suited for scalpers and day traders, who execute numerous trades within short timeframes. The combination of low spreads and fast execution makes it ideal for strategies requiring rapid market entries and exits. High-volume traders can also benefit from the tight spreads and competitive commission structure, which help to optimize trading costs for larger positions. Additionally, experienced traders who understand the intricacies of forex trading and are comfortable with a commission-based pricing model will appreciate the transparency and cost efficiency that this account provides.

Nonetheless, this account is not exclusively for these types of traders. Other kinds of traders may also find its features beneficial. But why should you choose HFM as your broker anyway? Let’s explore its credibility.

HFM Credibility

Before committing to any of a broker’s accounts, it is recommended to assess its credibility and trustworthiness. For us, we usually check two things to determine a broker’s credibility: the regulation and the reputation of the broker among traders. Fortunately, HFM has a strong regulatory background. It holds regulatory licenses from a variety of organisations including the FCA in the UK, the CySEC in Cyprus, the DFSA in the DIFC, the CMA in Kenya, and the FSCA in South Africa, among others. 

On another note, this broker has a solid rating on Trustpilot of 4.4 stars out of 5. And 62% of the reviews are 5-star ratings, showing general satisfaction with the services this broker provides to its clients. This has helped HFM attract a large number of clients, with over 2.5 million client accounts open. The large number of clients is another testament to the reputation of the broker among traders.

Final Comments

The HFM Zero Spread Account offers a compelling combination of ultra-low spreads, transparent pricing, and access to a wide range of trading instruments. It’s an excellent choice for traders who prioritise cost efficiency and fast execution. 

However, the commission fees and the potential for slippage are factors to consider. It is also important to consider how well HFM suits your trading needs in terms of credibility and trustworthiness. By carefully weighing the pros and cons and considering your individual trading needs, you can determine if the HFM Zero Spread Account is the right fit for you.

69% of retail investor accounts lose money when trading CFDs with this provider.