One of the company’s greatest attraction is the fact that it offers primarily variable tight spreads and commissions, not only that, but it also provides a specialised fixed spread account for scalpers and automated traders that equates to Interbank spread prices. With specific accounts where a Zero account offers near zero-spreads for scalpers and automated traders requiring near-zero spreads. HotForex broker looks forward to provide the best trading conditions to its clients, which is why they have at their disposition a great variety of different accounts to suit the specific requirements of different traders. They are a total of 8 accounts, which they are Micro, Premium, Zero, Fixed, VIP, Auto, Pamm, and HFCOPY.
Or, check out our full HotForex review 2020.
In case you don’t know and wonder what they are, it is the underlying service provided by financial brokerages, as their name implies, it is the process of which is described as trading. When traders engage in this buying and selling financial markets products process through their brokerage, there are costs and fees to execute such orders, and brokers typically will add a spread or commission to their underlying charges, if any, in order to get a profit for the services they provide to end traders who are their customers.
The spread it is known as the difference between the BID price and ASK price, both of these are the prices where an instrument can be sold and bought, respectively. This spread can be represented as a fixed amount, percentage or variable amount, and, in some cases even both, and represents the cost to trade the specific instrument.
This represents the cost that would be incurred to open and close a position in that instrument at that moment, by marking the trade into the market at the moment it is established, even if the spread or rates change the next moment. There are also commissions in addition to spreads, which are either fixed dollar amounts or percentage of trade values, which are added to trades when they are established, such as when opening and closing a position. While some firms can change only spreads, others may alter only commissions, and some of them may charge both, the overall sum of charges should be noted.
An excellent way to explain spread cost is by the next example, if a trade was executed to buy 1,000 units of CAD/USD at an ASK price of 4.2035, but at the same moment the bid price was 4.2030, it has a spread of 5 pips, the costs can be said to be that difference because at the moment that trade was opened the price where it could be sold was 5 pips lower, which would have netted a loss of that amount (4.2035 minus 4.2030 =0.0005 pips). If the market moves at the next moment 5 pips higher, having a bid price of 4.2035 and an ASK price of 4.2040, then it could enable the trade to be closed at a break-even, with no profit or loss), or whether it moved 5 pips lower at the next moment which would cause a 5 pip loss, the spread must be added to any profit or loss.
For low-cost trading solutions, you can open a ZERO Spread account with a minimum opening deposit of just USD 100, it is suitable for all traders, but has more potential for scalpers, high-volume trades and traders with Expert Advisors. You will receive RAW, Super-Tight HotForex spreads with a HotForex ZERO Spread account; it offers a highly transparent commission-based structure and commissions starting at a low USD 0.04 per 1K lot.
Many brokers wonder which HotForex account type offers the tighter spread with lower trading costs; these questions can be answered with the “VIP account” with a raw-spread of $6 per 1 standard lot commission. In HotForex official website, it offers spread from 0.1 pip on the VIP account, but this spread is even lower in the MT4 account type. For example, during the regular trading hours, HotForex spreads in EUR/USD for the VIP account goes with a bid price around of 1.07020 and an ASK price of 1.0725. The trading HotForex commission is $6 per standard lot, meaning that the actual trading spread starts from 0.7 pips including the extra trading commissions.
When you trade Index CFDs on HotForex MT4, there will be three types of commissions or trading cost; these are Fixed Spread, Trading Commissions and Swap Points.
The most common and typical spread for Index CFDs is as follows
The unit used is USD for all Index CFDs, except for SHCOMP which used CNH
HotForex has an extra commission of $2 per 1 round turn lot, which, in addition to the spread, both of these HotForex Spreads and Commissions are two inevitable trading cost that users need to cover.
Swap points won’t be incurred if you don’t hold an open position overnight. Through the official website, you can check the latest swaps, and it is recommended to check it out now and then because of how Swap points changes often. After you are all done with trading, cash in your profit with HotForex withdrawal system.