Introduction to HYCM
When it comes to CFD and forex brokers, few financial services companies are as established as HYCM. Also known as Henyep Capital Markets, the company has been around for a few decades and has always strived to provide what individuals are looking for with investments, trading, and more. The story of HYCM is an interesting one. It is also easy to see why many would want to put their trust in HYCM. When it comes to companies with a strong element of trust behind what they bring to the table, there are few brokers that can match up to what HYCM offers. This alone can lead you to believe that HYCM is well worth your time and money.
To a certain extent, they are. At the same time, we would advise a certain measure of caution. There are companies that started in forex and CFD, or younger companies that were still able to take advantage of these products early into their existence. Then you have financial services groups that branched out into these products. Some companies are successful in this endeavor. Others struggle. While HYCM has a few key benefits to keep in mind, many would argue that they are nonetheless in the second of those two categories.
With its establishment in 1977, HYCM has the distinction of being one of the most established financial services companies to offer forex or CFD trading. While this doesn’t necessarily mean they are the right company for you, it does mean that we are talking about a company with global experience in what they do and in what they offer. It is also worth noting that HYCM has had long-standing relationships with a number of different exchanges throughout Hong Kong. This is also where the company is currently set up.
In terms of European regulation, the company has been regulated through the Financial Conduct Authority in Britain for over twenty years. When it comes to regulations in general, you are going to find that HYCM can more than satisfy your requirements.
In the end, the main criticism against HYCM seems to be against their dedication to forex and CFD trading. While the company has certain pluses in their corner, which we will discuss in greater detail later on this review, the argument against using them is centered around whether or not you can get the best possible forex/CFD trading experience. The company has been praised by many, but a good deal of that praise has gone to other aspects of their financial services. While HYCM has its fans, it can be difficult at times to disagree with the larger opinion. If you are thinking about dabbling in investments and similar ventures, HYCM can be a solid bet. If you are specifically interested in exploring forex trading and CFD trading, you may want to go somewhere with a bit more dedication.
Ultimately, that is going to be for you to decide. Let’s take a closer look at some key HYCM features. This will make it easier to appreciate the pros and cons.
This is one category where problems can start to emerge for HYCM. The whole trading experience can strike you as bare bones, if you have any experience with forex of CFDs. Whereas most brokers have a variety of platforms and instruments, all located within a single location, HYCM has just one platform. Furthermore, it is only available in the web-based version. There is no mobile version available at this time.
To be fair, HYCM does have one of the best web-based platforms in MetaTrader 4. However, this is not even the most modern version of the platform. MetaTrader 4 is ultimately fantastic, but it is still unfortunate that HYCM only gives you one option. Again, most brokers will give you more than just the one. Many brokers in fact create their own platforms.
In terms of the number of products that you can check out, HYCM has more than eighty available. That is not a bad number by any means. All things considered, HYCM’s range of instruments puts them somewhere in this middle of this particular area. The problem comes down to the fact that everything is segmented across brands. This makes for a uniquely frustrating experience, as this generally isn’t something you will run into with a more dedicated broker.
Also, on the research materials side of things, you are once again going to be disappointed. While HYCM offers such informational resources for other aspects of their services, the offerings for forex traders are essentially non-existent. For experienced traders, an omission like this can be unforgivable. It does make the case that HYCM is not a good fit for anyone who desires a single place to serve all of their forex needs.
At this point, and perhaps understandably so, it may be difficult to believe that HYCM brings anything to the world of forex trading. This is not necessarily true, although the pickings for positive points are admittedly a little slim.
The company history of HYCM is one thing you certainly can’t shirk. The fact that the company is borderline lazy in their forex/CFD trading isn’t the same as the company being a disingenuous one. Their approach to HYCM is faulty, but the company still has a deep history with a wide range of license all over the world. This is not something you can ignore, but it doesn’t mean the company succeeds in all of their endeavors.
That said, the ability to work with Hong Kong-centric exchange-traded securities is definitely a perk. This is not something everyone is going to pursue, but it does have its own merits.
Also, if nothing else, HYCM at least chose a worthwhile platform for trading. Granted, it is MetaTrader 4, and it is only available in the web-based version with HYCM, but it does give you something to work with. A case can be made for HYCM being potentially useful to someone who is already using them for certain financial services, and would like to at least test the waters with forex and/or CFD trading. Beyond that possibility, it is very challenging indeed to imagine HYCM being a good fit for someone wanting to work largely, or even exclusively, in this arena.
Finally, HYCM does have a good customer serving reputation among its clients. There is also a solid virtual demo available that nicely gives you an idea of what this experience is going to entail.
Not to beat a dead horse, but it should be clear to see what the downsides are to working with HYCM. While these problematic elements aren’t as bad as a company that is actively in the business of trying to rip off traders as much as possible, they still present compelling reasons to look elsewhere for your trading needs. The shocking lack of resources, combined with a frustrating trader experience on several levels, can make it difficult to get much out of this company.
The pricing structure, which includes assorted fees and commissions, is honestly not too bad with this broker. Nonetheless, there are still a few things you are going to want to keep in mind.
The trading costs associated with HYCM are going to depend on the type of account you choose. At the moment, the company offers three different variations. These would be Fixed accounts, Raw accounts, and Classic accounts. The minimum initial deposit is extremely low at $100. You will also want to keep in mind that there are fixed forex spreads, as well as variable spreads. You will also want to keep in mind that the spreads for the EUR/USD currently stand at 1.8 pips. This is the spread for Fixed accounts. This is considerably higher than both the Raw accounts and Classic Accounts. Both of these currently stand at a much lower figure, which one would argue is much more competitive.
As we mentioned before, there is really just one group of people we can think of, when it comes to who could benefit from using this broker. That would be people who are already using this site, and who would also like to try out forex trading, or trading in CFDs. If you are such a person, HYCM can show you what you can expect. At the same time, you would get to do this with one of the most reliable financial services companies in the world.
However, once you got a little experience under your belt, and decided you wanted to expand, HYCM is not going to be right for you. This is not a good choice for anyone who wants the ability to explore their options with a certain degree of freedom. In almost every imaginable regard, HYCM is going to stymie this freedom. Again, it isn’t as bad as being completely ripped off, but it can shortchange your potential. Unless you happen to belong to the specific group we mentioned above, it is our advice that you turn somewhere else for forex and CFD trading. Better options are out there.