How do HFM 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.
At FxScouts, 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 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 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 holds two Tier 1 and one Tier 2 licences, and XM holds two Tier 1 and one Tier 2 licences.
Is HFM financially regulated?
Yes HFM was founded in 2010 and is regulated by CySEC, DFSA, FCA, FSC, FSCA and FSA-Seychelles.
Is XM financially regulated?
Yes XM was founded in 2009 and is regulated by ASIC, CySEC, DFSA, FSCA and FSC.
Based on these findings, HFM earned a higher trust rating than XM.
Does HFM 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 XM has overall lower trading costs than HFM.
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Does HFM 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 offers support for MT4, MT5 and HFM Trading App 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 and XM offer copy trading.
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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. XM offers 57 Forex pairs to trade and HFM offers 53 Forex pairs to trade.
And what about Cryptocurrencies?
In this case, XM offers 60 cryptocurrencies while HFM offers 40 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 nor XM charges a withdrawal fee. Overall, HFM 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 and XM both have very good educational support. Both HFM and XM offer educational support for more experienced traders.
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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 offers better research analysis than XM and that both HFM and XM offer frequent webinars.
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Our overall Verdict on HFM
HFM (formerly known as HotForex) is a well-known international broker with a strong presence in South Africa. It has local FSCA regulation and local customer support, and unlike many other international brokers, it offers ZAR trading accounts. It also offers fast and free deposits and withdrawals in South African Rands from a range of local banks, including FNB, ABSA, Nedbank, and Standard Bank, among others.
HFM offers four standard accounts and one specialised copy trading account. Three of its three standard accounts have no minimum deposit requirements and have extremely competitive 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 shares listed on the Johannesburg Stock Exchange and 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 1500 ZAR – well above the minimum deposit.
Our overall Verdict on XM
XM has some of the lowest fees in the industry, provides excellent research and education, and has a beginner-friendly trading app. With a large customer base and a good reputation, XM will be a good option for most South African traders. It has an outstanding range of trading tools and offers traders generous bonuses and incentives. It also has one of the best copy trading services in the industry.
XM offers four trading accounts, three of which require a minimum deposit of 5 USD and have no commissions for Forex trading. The highlight is the commission-free Ultra Low Account, with spreads starting at 0.6 pips (EUR/USD).
XM's main drawback is that although the South African FSCA regulates it, South African clients will be trading through XM’s company in Belize, which has poor regulatory oversight.
Which broker has the highest overall rating?
HFM has an overall rating of 4.53 and XM has an overall rating of 4.45. For more detail please read our reviews of
HFM and
XM.
