Arincen

Item: HYCM
Rating: 6.9

Key Takeaways

HYCM is a mid-sized broker with a 40-year trading history.
HYCM has won several awards for its services, recently winning “Best FOREX broker UAE” at the 2020 Global Banking and Finance Review, and “Best FOREX Trading platform in the Middle East” at the 2019 Global FOREX Awards.
HYCM executes fast trades with an average execution time of 12 milliseconds.
HYCM provides good access to financial markets, with over 300 tradable assets in six classes.
With access to 70 currency pairs and over 300 Contract for Differences (CFD) on indices, commodities, cryptocurrencies and stocks, HYCM customers have many investment options from which to choose.
Henyep Capital Markets (UK) Limited is regulated by the Financial Conduct Authority (FCA); HYCM (Europe) Ltd. is regulated under the Cyprus Securities and Exchange Commission (CySEC); HYCM Ltd is regulated by the Cayman Islands Monetary Authority (CIMA); and Henyep Capital Markets Limited is regulated by the Dubai Financial Services Authority (DFSA).
HYCM offers competitive spreads and commissions across most account types, with spreads as low as 0.2 pips.
HYCM prides itself on providing a secure trading environment with extensive investment in cybersecurity.
Traders can access a powerful base of quality research and education tools on the broker’s Website, supplemented by market news from third parties like Trading Central.
HYCM uses the well-known third-party trading platforms MetaTrader4 (MT4) and MetaTrader5 (MT5).
HYCM offers traders a choice of three different account types.
HYCM supplies quality multilingual 24/5 customer support.

HYCM Evaluate - research result

Overall Evaluation 6.93

Regulations

Deposits and Withdrawals

Commissions

3.5

Assets

8.8

Trading Platform

Research and Development

Customer Service

Mobile App Trading

Learning

Experience with broker

Trading Tools

Website

Overall Summary

HYCM, part of the Henyep Group, has been an active trader since 1977. Founded in Hong Kong, it gained its UK trading license in 1998, which was the start of a long trading history under top-tier regulation.

While it remains a relatively small broker, with a daily order book of 25,000 orders, it has competitive fees, with some fees as low as 0.2 pips. It executes fast trades with an average execution time of 12 milliseconds.

This broker offers good access to financial markets with over 300 assets across six classes. Customers can trade CFDs on FOREX, indices, commodities, stocks, and cryptocurrencies. HYCM recently included exchange-traded funds (ETF) into its product basket.

The group is active globally, with a focus on Asia, Europe and the Middle East. It welcomes clients from 140 countries. Its Website is available in 14 languages, including Mandarin Chinese and Vietnamese. This shows its global emphasis. It does not, however, work with clients from the US or Canada.

HYCM

Rating

Foundation Year

1977

Main Branch

United Kingdom

Other Branches

Limassol, Dubai, Kuwait, Hong Kong, Cayman Islands

Languages

14 languages including English

Work Hours

Market Opening Hours

Who Is HYCM Good For?

The broker offers a no-frills service that is equally good for new traders and intermediate traders alike. Other segments of traders who will find this broker attractive are customers of the greater Henyep group who are familiar with the group’s services.

The broker places emphasis on its performance in the MENA region, and its awards catalog confirms this. It has recently received awards such as “Best FOREX broker UAE” at the 2020 Global Banking and Finance Review, and “Best FOREX Trading platform in the Middle East” at the 2019 Global FOREX Awards. Traders in this area may find the broker an attractive proposition.

HYCM does not offer a good deal for high-volume or advanced traders. Elite traders will find that the broker’s list of tradable instruments is good, but by no means market leading. The broker also does not offer any compelling incentives for high-volume traders. HYCM offers VIP Accounts with dedicated account managers for top traders, but it does not offer meaningfully tight spreads for high volumes, and it also does not offer VIP treatment in the same way as some of its bigger rivals.

The company itself promotes its heritage as a big reason for new customers to join, claiming that its 40-year group history, “Has positioned us as one of the most trusted and transparent brokers in the FOREX industry.” However, there is more to choosing a broker than the length of its operations, and traders would be advised to look deeply for benefits in other areas. That said, here are some of the key aspects to take into account when considering this broker:

Pros

Well regulated.
Multilingual customer support.
Low FOREX and CFD fees.
Very good educational content.
Straightforward account opening.
MT4 and MT5 integration.
Top-tier educational resources.

Cons

Monthly inactivity fee.
Average trading platforms.
Few funding methods.
Limited market access.

Is HYCM Safe?

HYCM places a high emphasis on securing client funds. We can, therefore, consider it a safe broker. It segregates accounts as mandated by the FCA, the CySEC and the CIMA, using premier banks, such as Barclays and Eurobank. As normal, clients protected by the FCA and the CySEC receive extra fund security from the Financial Services Compensation Scheme (FSCS) and the Investors Compensation Fund (ICF), respectively.

The company is also a signatory to The Markets in Financial Instruments Directive (MiFID), which is a European regulation that drives increased transparency across the region’s financial markets and harmonizes the reporting of firms working in the EU. HYCM has also appointed a top five global accounting practice as its external auditors to ensure that quality standards remain high.

The broker has also implemented class-leading data and network security. For customer safety, it safeguards its servers with encrypted, highly secure 128-bit keys. Trader account information is also protected by VeriSign issued 128-bit-SSL certificates.

Trading Account Information

Account Currency

USD, EUR, GBP, RUB, AED

Minimum Deposit

$100

Segregated Accounts

Yes

Payment Methods

Bank transfer, Credit card, Electronic Banks, Cryptocurrencies

America Accepts

Available Markets

FOREX, Indices,Commodities, Stocks, Cryptocurrencies.

Trial Duration

14 days

Offering of Investments

HYCM offers traders good-but-unspectacular access to the market. It has 70 currency pairs in its FOREX basket, and 17 commodities, including gold, platinum and silver, in its commodities basket. Equity traders can choose from up to 61 quality stocks. Cryptocurrency CFD traders can trade on the performance of Bitcoin, Ethereum and Litecoin. These assets represent good value for beginner and intermediate traders, but will probably leave elite traders unsatisfied.

Available assets

Markets	Available	Number of Assets
Currency Pairs		70
Stocks		141
Commodities		12
Crypto		29
Indices		28
ETFs

Account Types

Account Type	Minimum Deposit	Spread Commission	Commission	Swap Commission	Deposit Commission	Withdrawal Commission
CLASSIC	$100	Starting from 1.2 pip	$0	No	$0	$0
FIXED	$100	Starting from 1.5 pip	$0	No	$0	$0
RAW	$200	Starting from 0.1 pip	$4	No	$0	$0

HYCM uses five simple guiding questions to help you choose which account is best for you. The broker offers three account types: The Fixed, the Classic and the Raw accounts. All three account types have an Islamic trading option.

Leverage can go up to a maximum of 1:500, depending on where the account is domiciled. There are also VIP and Corporate accounts for high-frequency traders and asset managers.

Fixed Account: Traders can take advantage of fixed spreads from 1.8 pips. In our view, these spreads are rather high. Automated trading is disabled. There are no commissions, and the minimum deposit is a low $100. This account does not offer Electronic Advisor (EA) help. The minimum trading volume is 0.01.

Classic Account: This account comes with variable spreads from 1.2pips, also considered high. Automated trading is allowed on this account, which also comes with no commission and a minimum deposit of $100. Users of this account will get EA help.

Raw Account: This account offers spreads from as low as 0.2 pips. Commissions come at $4 per round. The minimum deposit is higher than the other accounts at $200. There is an EA service available on this account. The minimum trade volume is 0.01.

Account Opening

HYCM enables a standard account-opening process. Clicking the “Open Live Account” button on the Website takes users through the usual Know Your Customer (KYC) processes. The Website will ask traders to confirm their country of origin and other biographical information and address details.

After answering a few questions about their background and financial knowledge, the user’s account will be verified when traders submit acceptable government-issued identification. Once the account is approved, users can deposit funds into the account.

Deposits and Withdrawals

The broker accepts deposits and withdrawals via bank wire transfers, credit and debit cards, and electronic methods, such as WebMoney, Neteller and Skrill. Compared to other brokers, this is a relatively limited offering.

Processing times for bank transfers can take anywhere from one to seven days, while electronic methods take less than an hour. Withdrawals through bank wire take one to five days, and up to one hour by electronic methods.

Deposits and withdrawals through all other electronic methods have a minimum of $20. Bank wire transfers are the exception, coming in at a deposit minimum of $250, and withdrawal minimum of $300. The fee structure is competitive, with no deposit or withdrawal fees levied by the broker, except for third-party charges. However, traders withdrawing more than $5,000 via Skrill or Neteller should know about the 1% fee.

Demo Account

Traders can also enjoy a demo account loaded with $50,000 in virtual cash. Traders have 14 days to make the most of this feature. They can trade their demo account on the MT4 platform in USD or EURs.

Advantages of Trading

Maximum Leverage

1 : 500

Minimum Lot Size

0.01 Lot

Available FOREX Pairs

70 Currency Pairs

Scalping

Yes

Hedging

Yes

Spread

Starting from 1.2 pips

Trailing Stop

Yes

Islamic Account

Yes

Trading Platforms

MT4 , MT5

Regulatory Bodies

FCA

Broker Type

STP

Customer Service

HYCM has an expert multilingual customer support desk that operates 24/5. Traders can reach it via email, phone and live chat. What’s more, the broker has a comprehensive Help Center on its Website, which includes a Frequently Asked Question (FAQ) section that tackles many of the most-asked queries.

Commissions and Fees

HYCM offers commission-free trading on its Fixed and Classic Accounts. Spreads of 1.8pips and 1.2 pips, respectively, can be considered somewhat high. The Raw Account is competitively priced at 0.2 pips and a commission of $4 per round.

The broker charges a $10 monthly inactivity fee. A currency conversion cost applies, and HYCM levies a $10 monthly inactivity fee after 90 days of no activity. Swap-free and Islamic accounts will not face interest charges overnight for the first 14 days that a position is open. After that, each contract attracts a charge of $5 per night.

Platforms and Tools

HYCM does not have its own proprietary trading platform. Instead, traders have the choice between MT4 and MT5. While these two platforms represent the market standard, the bespoke MT4 and MT5 versions accessible to HYCM traders are underpowered.

The broker offers a basic version of these well-known platforms that are not optimized through third-party plugins. Other brokers have integrated progressive add-ons like advanced analytics into their platforms, but not this broker. Although traders can install Trading Central indicators, these are still light when compared to other integrated platforms.

Both platforms come with EA services. Traders can take advantage of 24/5 automated trading without third-party bridging software. Here are some of the key features of these downloadable platforms:

MT4

Clickable charts for direct trading.
30 technical indicators and nine timeframes.
Three execution modes.
Two market order types.
Four pending orders.
Open positions trackable in the interface.

MT5

Two order account modes.
Three chart types for advanced analysis.
Six pending orders and 21 timeframes.
More than 80 technical indicators.

Mobile Trading

HYCM provides traders with the option of using the mobile versions of MT4 and MT5. These full-service mobile platforms can easily be downloaded onto iPhone and Android devices. Traders can access a range of interactive quote charts, different trading order types and tracking of order history.

Research and Development

HYCM offers a powerful research and market analysis package. In our opinion, this is the one area where the broker excels. It has a continuous stream of useful market commentary offered by both in-house as well as external experts.

Examples of Webinars include a FOREX market analysis and an online trading workshop. Traders can watch a professional trader in live action as they explain their decision-making in real time. The Demo Account is also linked to the broker’s research options, and traders can complete practical exercises to build their skills. Moreover, the broker had previously offered powerful venue-based seminars that have since been suspended because of the pandemic.

Education

HYCM offers a powerful educational product. Its knowledge base is comprehensive and stays up to date. Traders can access one of six educational areas:

Trading Tools.
Tutorials.
Trading Strategies.
eBooks.
Beginners Course.

Each section is loaded with in-house and external resources that target traders of all levels. Key topics, such as the terminology resource, are allied with expert material like advanced trader psychology. Traders of all levels of experience will benefit from this material.

Final Thoughts

Our assessment of HYCM is that it is a medium-sized broker that serves its customers adequately. However, in our view it is not outstanding in any facet of its offering. Beginner and intermediate traders will be completely satisfied with the experience, but elite traders will find the fee incentives lacking and the trading platforms not so enticing.

However, the broker has been in business for 40 years, which suggests capable and steady leadership. It places a premium on regulation, so traders can rest easy. The broker also takes care to ensure that its cyber security infrastructure is well-secured.

Its fees may be acceptable, but some spreads can be high. Funding methods for deposits and withdrawals are somewhat limited. With only three main account types, it can lack variety. The broker has good market access to over 300 instruments across six asset classes. Its platforms are acceptable, but no more.

HYCM offers strong educational tools, which are always welcomed. However, traders will be right to question that overall balance of this broker’s offering.

Conclusion

In sum, HYCM is a broker that is good at many things, but outstanding at none. It has a foothold in the competitive MENA space, as evidenced by its awards. However, it may struggle to differentiate itself in wider markets.

Notwithstanding, with strong regulation, adequate market access, and good educational and research tools, the broker can keep its existing client base satisfied. However, as trader demands increase and they look for platform variety, advanced analytics, and an ever-growing range of assets, this broker may fall behind.

HYCM in Brief

HYCM is a mid-sized broker that adequately services new and intermediate traders with its simple account types and well-known platforms. With good regulation, competitive fees, and acceptable market access, it provides a solid option to traders looking for a safe start.

Review Methodology

The team at Arincen collected more than 120 pieces of data covering in excess of 100 licensed FOREX companies. Data collection was done in three ways:
1. Companies’ Websites.
2. Other Websites that have ranked FOREX companies.
3. A survey questionnaire (referred to here as Survey “1”) we had sent to the companies invited to participate in the exercise.
We have identified 12 criteria for our assessment, each containing several aspects and carrying its own relative weight. These include licensing, deposits and withdrawals, number of assets etc.
Afterwards we validated the data by:
1. Registering with FOREX companies as a secret shopper and/or as Arincen.
2. Survey number “2,” in which we asked these companies’ customers for important feedback and past experience.
The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including taking into account different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung etc.
To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more on how we came up with the evaluation, please click here.