Is HFM a Reliable Broker?
HFM seems like an ideal broker, at least when it comes to licenses. However, just as a person with many higher educational degrees may not necessarily have common sense or be easy to deal with, the same is true of brokers with multiple licenses.
Although brokers with a regulator’s seal of approval are indeed less likely to be problematic than those with no regulation at all, there can still be risks even with regulated brokers. HFM seems to demonstrate this principle.
Although many customers have reported that they are happy with this broker, we have encountered many others who have serious complaints. We can’t just ignore the situation and assume it’s a wash. The negative things we have heard about this broker are significant enough to issue a warning and take a deep dive and investigate HFM further
About HFM
HFM looks terrific on paper. It has multiple licenses, including from CySec. Its fees are quite low and pips are competitive at near zero. People who want to give the platform a try can use a demo account or can open an actual account for as little as $5.
HFM offers a diversity of account types–seven in all. They have a wide selection of educational services that will help novice traders learn the ropes. There is no withdrawal fee and a modest inactivity fee of just $5.
HFM offers 17 trading tools and over 150 trading products. Customers have access to MetaTrader 4 and 5, the most accurate and reliable trading platforms available.
This may all sound ideal. You may be wondering, what could be wrong with HFM? Unfortunately, many customers have complained about HFM despite its strong overall reputation.
Keep in mind that the infamous FTX was featured in high-profile financial publications before news of its many scandals surfaced and it fell into disrepute and bankruptcy. When it comes to brokers, it’s important to assume nothing, but to do thorough research, speak to actual people who have first-hand experience trading with the broker, and be willing to be skeptical.
Are There Issues with HFM?
HFM seems like a model broker just looking at its attributes on paper. However, the word on the street can often be more accurate and can indicate when a broker is about to be exposed.
It’s important to seek information from actual clients and not from review sites where anyone can post. We’re all familiar with the trick of a broker’s competitors writing fake negative reviews to paint a broker in a false light.
We’ve steered clear of these unhelpful sources and instead have come across people who have had negative experiences with HFM and can report firsthand. The following are problems we noticed after investigating and speaking to HFM clients:
- Standards and offerings differ from region to region
- Deviates from license and offers risky trading
- Problems with withdrawals
- Some representatives made false promises
- Sudden account closure without refunds
- Dissatisfaction with customer service
Standards and Offerings Differ from Region to Region–Risky Trading
One thing HFM seems to consider an advantage is its diversity of offerings. It’s nice to have a choice. However, not everyone actually has a choice. HFM gives the impression it offers a variety of assets, account types, and trading opportunities across the globe. The reality is these can be drastically limited according to where you live.
Of course, we understand if brokers sign up US clients and can’t offer them CFDs which are illegal in the United States. This isn’t the broker’s fault or problem.
However, regulators around the world have different rules on leverage, bonuses, and trading styles. For instance, in some areas, leverage is capped at 1:30. In South Africa, the limit is 1:200. HFM offers leverage that is on a sliding scale and varies from 1:30 to a whopping 1:1,000.
Leverage is often used as bait to attract risk-hungry investors. However, those that seem to crave risk are often the most vulnerable. That’s why a broker with the kind of licenses HFM has shouldn’t offer leverage as high as 1:1,000. It seems it’s taking advantage of the fact it trades globally to protect some clients more than others, which seems to show a lack of integrity.
Problems with withdrawals
We have repeatedly seen complaints that HFM isn’t quick to offer withdrawals. Of course, the reviewer could be an impatient person or may not understand the rules. However, with all of HFM’s guarantees about seamless and quick withdrawals, we’re surprised at the number of people who said they couldn’t get a hold of their money.
Perhaps many of these cases were mere misunderstandings. Then that means that HFM lacks competence. It may not be a scam broker, but whether it’s intentional or not, people have lost their money and HFM is responsible in these cases.
Representatives Made False Promises
We don’t see a lot of cheesy false promises on the HFM website. However, several customers have reported that HFM representatives said they would definitely see gains of a specific amount, especially if they deposited more money. A regulated broker shouldn’t be doing this.
Sudden Account Closure Without Refunds
A few customers said their accounts were closed suddenly without explanation. Others said the representatives claimed they no longer offered services in the customer’s country. The least they could do is refund their money. HFM did not.
Dissatisfaction with Customer Service
HFM seems proud of its customer service. Perhaps it shouldn’t be. The fact it doesn’t offer 24/7 customer service can be forgiven, but many people reported that their questions were unanswered or even ignored.
Have You Lost Money to HFM or Another Broker? Talk to Broker Complaint Registry
We create these reviews to warn consumers about brokers and schemes that may be fraudulent. If you have an account with this broker close it and request a withdrawal. If you are not given your money back, contact Broker Complaint Registry right away. We will consult with you, work to track down your funds and create investigative reports, and will assist with fund recovery efforts.
