HFM (HotForex) vs XM - 2022 Comparison | FX Scouts Kenya
AuthorBy Björn Michels
Updated: August 29, 2022

Trading with a reputable online broker is a crucial factor for success in the international markets. At FX Scouts Kenya, we help you find the broker that suits your trading needs.

Each year we spend thousands of hours testing brokers by opening accounts, testing their platforms, and rating them according to a set of over 200 metrics. We deposit real money with the brokers to ensure that the products and user experience they advertise are consistent with reality.

We have found that the best way for traders to choose a broker is to compare brokers side-by-side. The comparison tool below allows you to compare two brokers based on their ratings and features.

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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
11110.54.43/ 5 USD 5Capital Markets AuthorityCySEC Regulated BrokersFCA Regulated BrokersFSCA Regulated Forex BrokersSTPBonds, Commodities, Cryptocurrencies, Energies, Stock CFDs, ETFs, Forex, Indices, Metals, Stock DMAs5319
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
  • Limited base currencies
Read Review 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 11110.54.5/ 5 111115/ 5 11110.54.5/ 5 11110.54.5/ 5 72.90%400:10 pips Auto, HFCopy, Islamic, Micro, Premium, Premium Pro, Zero MT4, MT5Bank Transfer, Visa, Mastercard, Skrill6 USD / lot - Zero Account
11110.54.25/ 5 USD 5CySEC Regulated BrokersASIC Regulated Forex BrokersFCA Regulated BrokersInternational Financial Services CommissionMarket MakerCommodities, Cryptocurrencies, Energies, Stock CFDs, Forex, Indices, Metals5731
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
  • Dealing desk
  • Wide spreads on its entry-level accounts
Read Review 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 11110.54.5/ 5 111115/ 5 1110.503.5/ 5 111104/ 5 74.07%500:10.60 pips Micro, Standard, XM Ultra Low, XM Zero MT4, MT5Bank Transfer, Mastercard, Visa, Skrill, Neteller7 USD / lot - XM Zero Account

How do HFM (HotForex) and XM stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

HFM (HotForex)

XM

At FX Scouts Kenya, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare HFM (HotForex) and XM, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does HFM (HotForex) or XM have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that HFM (HotForex) holds two Tier 1 and one Tier 2 licences, and XM holds one Tier 1 and one Tier 2 licences.

 

Can I trust XM?

Yes as XM was founded in 2009 and is regulated by ASIC, CySEC, FCA and IFSC.

 

Can I trust HFM (HotForex)?

Yes as HFM (HotForex) was founded in 2010 and is regulated by CMA, CySEC, FCA and FSCA.

 

Based on these findings, XM earned a higher trust rating than HFM (HotForex).

Does HFM (HotForex) or XM have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that HFM (HotForex) has overall lower trading costs than XM. 

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Commission
HFM (HotForex)
11110.54.5/ 5
EUR, USD, ZAR
1.00 pips
USD 10
0.10 pips
0.50 pips
0.30 pips
USD 0
XM
11110.54.5/ 5
USD, EUR, GBP, JPY, CHF, ‎AUD, HUF, PLN, RUB, SGD, ZAR
1.60 pips
USD 16
0.10 pips
0.20 pips
0.10 pips
USD 0

 

Does HFM (HotForex) or XM offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, HFM (HotForex) offers support for MT4 and MT5 and XM offers support for MT4 and MT5. 

Do the brokers offer copy trading?

Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case both HFM (HotForex) and XM offer copy trading.

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Broker
Platform Choice
Copy Trading
Platforms
XM
11110.54.5/ 5

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that XM offers a greater range and depth of instruments to trade than HFM (HotForex). XM offers 57 Forex pairs to trade and HFM (HotForex) offers 53 Forex pairs to trade.

Toplist Forex Pairs

And what about Cryptocurrencies?

In this case, XM offers 31 cryptocurrencies while HFM (HotForex) offers 19 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with XM.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that neither HFM (HotForex) nor XM charges a withdrawal fee. Overall, HFM (HotForex) has better deposit and withdrawal processes than XM. 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

HFM (HotForex) and XM both have very good educational support. Both HFM (HotForex) and XM offer educational support for more experienced traders.

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Broker
Beginner Course
Advanced Course
Well Structured Education
Education Quality
Webinars
HFM (HotForex)
High
XM
High

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that HFM (HotForex) offers better research analysis than XM and that both HFM (HotForex) and XM offer frequent webinars.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS
HFM (HotForex)
XM

 

Our overall Verdict on HFM (HotForex)

HFM (formerly known as HotForex) is a well-known international broker with a strong presence in Kenya. It has local CMA regulation and local customer support, and unlike many other international brokers, it offers KES trading accounts. It also offers fast and free deposits and withdrawals from a range of local banks. 

HFM offers three standard accounts and two specialised copy trading accounts, but the standout is the Micro Account, with a 5 USD minimum deposit and reasonable trading fees. We were also pleased to find that HFM has recently reintroduced cryptocurrency trading, no doubt because of the popularity of the asset. This is alongside an excellent range of trading instruments, including over 950 other international stocks.

HFM supports the MT4 and MT5 platforms in addition to its own mobile HF App, which allows clients to trade from charts and make deposits and withdrawals. It also has several excellent trading tools to assist traders further. Unfortunately, access to tools such as Autochartist, which other brokers offer as a free service, requires an account balance of 100 USD – well above the required minimum deposit.

Our overall Verdict on XM

XM is a reliable multi-regulated CFD broker offering trading in Forex, stocks, commodities, indices, metals, and energies. XM leads the Forex industry in terms of education and market analysis, but with customer service closed on the weekend, beginner traders with technical issues could face difficultly.

With support for MT4 and MT5, trading costs below the industry average on both introductory and professional accounts, and a low minimum deposit of 5 USD, XM Group stands out from a crowded field of market maker brokers.

Which broker has the highest overall rating?

HFM (HotForex) has an overall rating of 4.43 and XM has an overall rating of 4.25. For more detail please read our reviews of HFM (HotForex) and XM.

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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