HYCM review: An In-Depth Look at This Broker
This HYCM review provides a comprehensive look at the broker’s offerings, fees, and regulatory standing. HYCM, also known as Henyep Markets, is a global CFD and forex broker with a long-standing history.
The parent company, Henyep, was established in 1977, demonstrating a significant track record in the financial industry. This long history, combined with robust regulation, contributes to the overall perception of the HYCM broker as a reliable entity.
Is HYCM safe? Understanding HYCM Regulation
HYCM is regulated by several financial authorities globally. Key regulators include the UK Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC). The UK operation of HYCM is particularly considered safe due to its regulation by the top-tier FCA.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 59% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
HYCM Fees: A Detailed Breakdown
To provide a thorough HYCM review, we’ve evaluated the broker’s fee levels against those of other reviewed brokers, categorizing them as low, average, or high. Understanding the different types of fees is crucial for any trader.
Types of Broker Fees
- Trading fees: These are incurred when you make a trade and can include commissions, spreads, financing rates, and conversion fees.
- Non-trading fees: These are charges not directly related to trading, such as withdrawal fees or inactivity fees.
In this HYCM review, we will delve into the specific fees charged by HYCM for various asset classes. For instance, for forex and stock index trading, spreads, commissions, and financing rates are the most significant costs.
We’ve also compared HYCM’s fees with those of similar brokers like XM and AvaTrade, chosen based on objective factors such as product offerings, client profile, and fee structure. This comparison helps to provide a clear overview of HYCM’s competitiveness.
HYCM Trading Fees
Overall, HYCM’s trading fees are considered low. The broker offers different cost structures depending on the account type. For the purpose of this HYCM review, we specifically tested the fees associated with the Classic account.
Comparing trading fees for CFD brokers can be challenging. Our approach involves calculating all fees for a typical trade across selected products to ensure clarity and comparability.
Benchmark for Trading Fee Comparison
We selected popular instruments within each asset class for our benchmark:
- Stock index CFDs: SPX and EUSTX50
- Stock CFDs: Apple and Vodafone
- Forex: EURUSD, GBPUSD, AUDUSD, EURCHF, and EURGBP
A “typical trade” involves buying a leveraged position, holding it for one week, and then selling. The volume chosen was a $2,000 position for stock index and stock CFDs, and $20,000 for forex transactions. The leverage applied was:
- 20:1 for stock index CFDs
- 5:1 for stock CFDs
- 30:1 for forex
These benchmark fees encompass spreads, commissions, and financing costs for all brokers under comparison. Let’s examine the verdict for HYCM fees in detail.
HYCM CFD Fees
HYCM generally offers low CFD trading fees, comparing favorably to its main competitors. Here’s a comparison for a $2,000 long position held for one week:
| HYCM | AvaTrade | XM | |
|---|---|---|---|
| S&P 500 index CFD fee | $1.7 | $2.6 | $2.5 |
| Europe 50 index CFD fee | $0.8 | $2.0 | $3.1 |
HYCM Forex Fees
HYCM forex fees are also low and competitive with its main rivals. Below are the benchmark fees for a $20,000 30:1 long position held for one week:
| HYCM | AvaTrade | XM | |
|---|---|---|---|
| EURUSD benchmark fee | $14.3 | $16.4 | $17.5 |
| GBPUSD benchmark fee | $11.6 | $11.3 | $12.2 |
| AUDUSD benchmark fee | $14.5 | $15.3 | $14.5 |
For Classic and Fixed accounts, the HYCM broker primarily charges spread costs. The Raw account, however, features low spreads but includes a $4 per lot per trade commission. The Raw account is particularly advantageous for high-volume traders.
HYCM Non-Trading Fees
HYCM has average non-trading fees. This Henyep Markets review highlights the following non-trading fee comparison:
| HYCM | AvaTrade | XM | |
|---|---|---|---|
| Account fee | No | No | No |
| Inactivity fee | Yes | Yes | Yes |
| Deposit fee | $0 | $0 | $0 |
| Withdrawal fee | $0 | $0 | $0 |
It is a positive aspect that no deposit or account fees are charged by HYCM. Typically, HYCM also does not charge withdrawal fees. However, there are two exceptions to this policy:
- Withdrawals of less than $300 via bank transfer incur a $30 handling fee.
