Opening a FX trading account with HotForex (HF Markets) - World Leader in Financial Trading

Opening a FX account with HotForex

HotForex is an award-winning Forex and Commodity Broker providing trading services and trading tools to individual and corporate clients.

HotForex is the FX of choice for traders around the world through the policy of providing the best trading environment for all clients and allowing free access to liquidity for both scalper and expert advisor traders.

HotForex, or HF Markets brand was built in 2010, and now provides the service to traders all over the world.

The service is supported by over 200 professionals worldwide, and their customer support speaks about 30 different languages.

HotForex provides all tools and services that clients of all levels need to achieve their trading goals.

The PC trading tool, which has been expanded based on user requests, is packed with functions for comfortable trading.

Go to HotForex Official Website and start your online trading journey today.

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Why you should trade FX with HotForex?

FX trading looks good, but stocks also feel more familiar, so why is FX good in the first place?

This time, let us explain about the “merits of FX” that are full of charm.

FX has the following advantages.

1. Utilize up to 1:1000 FX Leverage

With FX, you can trade with less money than you actually trade.

Why can you move big money with less money?

That’s because FX is a margin trading.

In margin trading, you can trade a large amount of money with small collateral as margin.

For example, “You don’t need 1 million USD to move 1 million USD.

The concept is, you prepare more than 1000 USD, and if you lose it and the money in your account breaks 1000 USD, it’s over.

In the example, the margin was 1000 USD, but the amount of margin varies depending on the FX broker and currency pair.

As anyone who has ever traded in stock knows, the leverage of stock margin trading is around 5 times.

Compared to the large fluctuation range of stocks, the fluctuation range of the Forex exchange rate is 1 to 3 pips per day, so you can apply large leverage.

Of course, if you want to refrain from trading with a large amount of risk with a small amount, you can deposit a large amount and suppress the risk.

Although there is a risk, it is one of the attractions of FX that you can trade with increased leverage up to 1000 times leverage.

In terms of leverage, HotForex’s 1:1000 is one of the highest leverage available in the Forex market.

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2. Trade at anytime in a day

Another merit of FX is the flexible trading hours.

Normally a stock market is open from 9am to 3pm.

Many office workers are at work, so there is a term “toilet trader” who stays in the bathroom and deals in a stock market on mobile phones.

On the other hand, Forex can be traded 24 hours a day on any weekdays.

To be precise, it is possible to trade from 6:00 early on Monday to 6:00 on Saturday. (There may be some deviation depending on the FX broker.)

So if you are late due to overtime, you can trade calmly from home until you go to bed.

Note that the trading hours of each financial market is different, especially for stocks, commodities, precious metals and other CFD markets.

For more information about the trading hours, please go to HotForex Official Website.

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3. Make profits with Swap Points

In FX, there is an interest rate difference called “swap”.

Interest rates for each currency are different.

Therefore, when you sell or buy currencies in the FX market, you will receive or pay the interest rate difference between the currencies you traded.

In FX, you can get swap gains by making good use of this.

Of course, payment may also occur. Swaps fluctuate daily, so if you want to make a good profit, check the swap on that day on the trading platforms.

Also, keep in mind that while you hold a position to receive swaps, you will still see a gain or loss from currency fluctuations.

With HotForex, you can see the latest swap points (rates) directly on MT4 and MT5 trading platforms.

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4. Make profit from falling prices

With FX, you can buy or sell, or start trading from either.

You often see people who say, “I lost a lot.” in an interview with a securities company when a crash, often called the XX shock occurred.

However, since FX can be sold, it is said that many people became millionaires not only in these market events but also in the Lehman shock.

Also, it seems that there are many traders who like selling because they tend to make a profit relatively quickly.

Of course with HotForex, you can place both buy and sell orders at anytime to make profit from both directions of price changes.

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5. Almost Zero Cost of Trading

Most FX brokers do not charge commissions.

Therefore, what traders are aware of as the transaction cost is that the difference between the buy price and the sell price will start a negative start immediately after the new order is executed, the currency with a high interest rate will start trading from the sell order, or the currency with a low interest rate will be bought.

Also with HotForex, the trading cost is zeroed for many account types and the spread cost is also minimized.

Go to HotForex Official Website to see more about the related trading costs involved to the Forex trading.

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Risk of Forex trading

First, let’s review why FX is so popular.

Forex is highly leveraged, has good financial efficiency, and it is easier for office workers who can trade 24 hours a day and work in the daytime.

You can start trading from both selling and buying, you can flexibly trade according to the market situation, and there are many advantages such as low trading cost.

Then, is there no disadvantage?

Let’s look at the disadvantages that you should be aware of when trading Forex.

1. High Leverage = High Risk

It is a FX that can leverage up to 1000 times (in case of HotForex) and can expect a large transaction profit even with a small amount.

Financial efficiency is a big advantage of FX, but it means that there is a possibility that a big loss will occur if it is reversed.

No matter how market-savvy a professional is, you can’t win 100 in 100 transactions.

The foreign exchange market is the largest market in the world where people, companies and countries all over the world trade for various reasons.

We can’t keep track of all those deals, and there are plenty of quotes that move for unexpected reasons.

How much loss will be generated when the market moves in the opposite direction to what you expected?

You need to get it right. Place a stop loss order in front of the point that you don’t want to lose any more and manage it firmly.

Fortunately with HotForex, the maximum loss is limited to the total account balance as HotForex supports NBP (Negative Balance Protection) for all trading accounts.

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2. Market moves 24 hours a day constantly

The fact that you can trade 24 hours a day means that the market price is moving even when you are working or sleeping.

You can’t just stick to the trading screen and watch the market as long as you have a position.

Make sure to place a stop loss order and be prepared for unexpected movements so that you will not make a big loss when you are not watching and you will not be surprised.

On HotForex MT4 and MT5 trading platforms, you are provided with all types of order types that you can utilize.

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3. Risk of system error / trouble

FX system is generally used for transactions over the Internet and it is rare that trading can not be done due to an error in the trading system of the Forex broker, but it is not absolute.

There are also cases in which the PC or smartphone you are using for trading suddenly breaks and you cannot trade.

Regarding risks of brokers’ system, it is effective to take measures such as having accounts with multiple brokers.

Regarding the malfunction of your trading tools, make it possible to trade from both PC and smartphone, put a stop loss order properly and limit the loss even if the market moves in the situation where trading can not be done.

If there is a system error on HotForex’s side, you can contact them to fix them and your orders.

For the list of online Forex and CFD brokers to diversify your accounts, visit the page here.

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4. Risk of Market Volatility

The foreign exchange market is the largest in the world and the trading volume is enormous.

Therefore, in the case of major currency pairs such as USD, EUR, GBP and JPY, there is no case where the market price changes suddenly without being able to trade unless there is something special.

However, historically, there are cases in which this happens.

The pound collapsed during the pound crisis, when it was said that the Bank of England would go bankrupt in 1992

The dollar collapsed in 1998 when the LTCM shocked the world’s largest LTCM.

In 1998, when the situation was terrible, the USD/JPY collapsed in a few minutes in a few minutes, and the dollar weakened more than 20 JPY a day.

Recently, there was the 2015 Swiss franc shock, in which the Swiss central bank suddenly abolished the Swiss franc’s unlimited intervention against the euro.

At this time, the EUR/CHF showed a crash of 3800 pips in about 20 minutes.

These cases are extremely rare, but always be aware of the risk of sudden changes in your eyes, and always place a loss cut order.

Also, recently, the number of currency pairs that can be traded on FX tends to increase, but for example, the trading volume of Turkish lira between banks is about one third of the USD.

It is important to note that the price moves when there is almost no transaction when something happens.

By putting a stop loss order, it is possible to reduce the risk to some extent, but in the case of a Swiss franc shock, even if you try to execute a stop loss order, there is no transaction in the world and you will lose more than you expected.

Be especially careful when trading currencies with low trading volumes.

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