HFM (HotForex) vs AvaTrade - 2022 Comparison | FX Scouts
AuthorBy Björn Michels
Updated: August 29, 2022

Trading with a reputable online broker is a crucial factor for success in the international markets. At FX Scouts, we help you find the broker that suits your trading needs.

Each year we spend thousands of hours testing brokers by opening accounts, testing their platforms, and rating them according to a set of over 200 metrics. We deposit real money with the brokers to ensure that the products and user experience they advertise are consistent with reality.

We have found that the best way for traders to choose a broker is to compare brokers side-by-side. The comparison tool below allows you to compare two brokers based on their ratings and features.

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Overall Rating
Min. Deposit
Regulation
Trading Desk Type
Trading Instruments
Forex Pairs
Crypto Pairs
Pros
Cons
Regulation
Trading Conditions
Trading Platforms
Deposit & Withdrawal
Education & Research
Assets Available
Customer Service
% Lose with this broker
Leverage
Spread
Hedging
Scalping
Account Types
Islamic Account
Trading Platforms
Funding Methods
Trading Commission
11110.54.43/ 5 USD 5CySEC Regulated BrokersFCA Regulated BrokersFSCA Regulated Forex BrokersDubai Financial Services AuthorityFinancial Services CommissionThe Seychelles Financial Services AuthoritySTPBonds, Commodities, Cryptocurrencies, Energies, Stock CFDs, ETFs, Forex, Indices, Metals, Stock DMAs5319
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
  • Limited base currencies
Read Review 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 11110.54.5/ 5 111115/ 5 11110.54.5/ 5 11110.54.5/ 5 72.90%1000:10 pips Auto, HFCopy, Islamic, Micro, Premium, Premium Pro, Zero MT4, MT5Bank Transfer, Visa, Mastercard, Skrill6 USD / lot - Zero Account
11110.54.38/ 5 USD 100ASIC Regulated Forex BrokersFSCA Regulated Forex BrokersBritish Virgin Islands Financial Services CommissionFinancial Services AgencyCentral Bank of IrelandMarket MakerBonds, Commodities, Cryptocurrencies, Stock CFDs, ETFs, Forex, Indices, Vanilla Options5520
  • Good for beginners
  • Well regulated
  • Low minimum deposit
  • Dealing desk
  • Limited market analysis
Read Review 111104/ 5 11110.54.5/ 5 11110.54.5/ 5 11110.54.5/ 5 111115/ 5 11110.54.5/ 5 111104/ 5 71%400:10.90 pips Islamic, Professional, Retail MT4, MT5, Avatrade Social, AvaOptionsSkrill, WebMoney, Neteller, Bank Transfer, Mastercard, Visa, Maestro, POLi, PaypalFees Included in Spread

How do HFM (HotForex) and AvaTrade stack up against each other?

The Radar Chart below highlights how the brokers stack up against each other across various metrics. The highest score a broker can receive in each area is 5.

AvaTrade

HFM (HotForex)

At FX Scouts, we help traders find the broker that suits their trading needs. In many cases, the best way to achieve this is to compare brokers side-by-side.

To compare HFM (HotForex) and AvaTrade, we used the same factors we use when reviewing brokers: The trust and regulation of the broker, the trading platform, the costs and trading conditions, and the level of education and market analysis available at the broker.

Does HFM (HotForex) or AvaTrade have a better trust and regulation rating?

Trust and regulation are some of the most important factors to consider when choosing a Forex broker. Trust in the Forex trading business is almost entirely founded upon regulation. We spend many hours evaluating the safety of each broker by delving into their fine print and confirming each one of their regulatory licences on the online registers. The more top-tier authorities a broker is regulated by, the higher its trust rating.

In our comparison, we found that HFM (HotForex) holds two Tier 1 and two Tier 2 licences, and AvaTrade holds one Tier 1 and two Tier 2 licences.

 

Can I trust AvaTrade?

Yes as AvaTrade was founded in 2006 and is regulated by ASIC, B.V.I FSC, CBI, FRSA, FSA-Japan and FSCA.

 

Can I trust HFM (HotForex)?

Yes as HFM (HotForex) was founded in 2010 and is regulated by CySEC, DFSA, FCA, FSC, FSCA and FSA-Seychelles.

 

Based on these findings, AvaTrade earned a higher trust rating than HFM (HotForex).

Does HFM (HotForex) or AvaTrade have lower costs?

Another important aspect we consider when comparing brokers is the cost of trading. When evaluating trading costs, we always consider the minimum deposit required to open an account and the ongoing trading costs, including the spreads and commissions. When calculating trading costs, we measure the cost to trade one lot of EUR/USD using the broker’s account with the lowest minimum deposit. The cost includes both the spread and any commission charged. 

Not all brokers publish their trading costs, so we often open accounts and trade on their platforms to verify the spreads and commissions. Based on our reviews, we found that AvaTrade has overall lower trading costs than HFM (HotForex). 

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Broker
Trading Conditions
Base Currencies
EURUSD (Standard)
Trading Cost (Standard)
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Commission
HFM (HotForex)
11110.54.5/ 5
EUR, USD, ZAR
1.00 pips
USD 10
0.10 pips
0.50 pips
0.30 pips
USD 0
AvaTrade
11110.54.5/ 5
USD, GBP, EUR, AUD, ZAR, CHF
0.90 pips
USD 9
0.90 pips
1.60 pips
1.10 pips
USD 0

 

Does HFM (HotForex) or AvaTrade offer a better choice of trading platforms?

Traders want Forex brokers to offer them a choice of trading platforms, so we give brokers who offer multiple platforms higher ratings. Trading platforms we consider include MetaTrader4, MetaTrader5, cTrader and proprietary mobile and web-based platforms. 

In this case, AvaTrade offers support for MT4 and MT5 and HFM (HotForex) offers support for AvaOptions, Avatrade Social, MT4 and MT5. 

Do the brokers offer copy trading?

Copy trading is a great option for beginner traders who can’t trade full-time or lack experience with Forex trading. In this case both AvaTrade and HFM (HotForex) offer copy trading.

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Broker
Platform Choice
Copy Trading
Platforms
AvaTrade
11110.54.5/ 5
Avatrade Social
AvaOptions

 

Which broker offers a better choice of trading instruments?

A variety of CFD instruments – and a large range of CFDs for each instrument category allow traders more opportunities for profitable trading. The best brokers will have thousands of CFDs to trade, covering all these instrument categories. We found that AvaTrade offers a greater range and depth of instruments to trade than HFM (HotForex). AvaTrade offers 55 Forex pairs to trade and HFM (HotForex) offers 53 Forex pairs to trade.

Toplist Forex Pairs

And what about Cryptocurrencies?

In this case, AvaTrade offers 20 cryptocurrencies while HFM (HotForex) offers 19 cryptocurrencies. So if you want to trade cryptocurrencies, we advise trading with AvaTrade.

Which broker offers better deposit and withdrawal processes?

Although brokers may have reasonable trading fees, many traders are caught out by the high non-trading fees charged by some brokers, including deposits and withdrawals. Traders want to be able to deposit and withdraw funds quickly and cheaply. Most brokers have multiple funding methods with zero fees for making deposits, but some brokers make it more expensive and take longer to process withdrawals. 

We rate brokers more highly that process withdrawals within 24 hours by multiple withdrawal methods and without charging processing fees. We found that neither AvaTrade nor HFM (HotForex) charges a withdrawal fee. Overall, HFM (HotForex) has better deposit and withdrawal processes than AvaTrade. 

Which broker offers better educational support?

We often find that brokers offer very little in the way of educational materials, forcing traders to use other third-party sites or self-educate elsewhere. Beginner traders need well-structured, well-presented materials in multiple formats to get a good start at trading. More experienced traders also benefit from webinars led by experts in the field and advanced trading strategy sections with new trading ideas. 

AvaTrade and HFM (HotForex) both have very good educational support. Both AvaTrade and HFM (HotForex) offer educational support for more experienced traders.

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Broker
Beginner Course
Advanced Course
Well Structured Education
Education Quality
Webinars
HFM (HotForex)
High
AvaTrade
High

 

Which broker offers better market analysis materials?

To successfully predict the price movements of an instrument, traders will need access to frequent market research and analysis. We find that research and market analysis are always better when they are produced in-house and updated frequently. Third-party resources don’t show the same expertise in trading ideas, so we place a strong emphasis on frequent in-house updates. Some brokers also often offer interactive webinars where traders can learn from experts in the field. 

We found that HFM (HotForex) offers better research analysis than AvaTrade and that both AvaTrade and HFM (HotForex) offer frequent webinars.

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Broker
Economic Calendar
Autochartist
Trading Central
Trading View
Free VPS
HFM (HotForex)
AvaTrade

 

Our overall Verdict on HFM (HotForex)

HFM (formerly known as HotForex) is a global CFD broker offering a relatively wide range of trading products including Forex, commodities, indices, shares, bonds, and ETFs – though it recently stopped offering crypto CFDs. Nigerian traders will be trading through the St Vincent and Grenadines licenced subsidiary, as there is currently no local Nigerian regulator. 

The HFM Micro Account has lower trading costs than most other brokers’ entry-level accounts with a 5 USD minimum deposit, fast market execution and spreads starting at 1 pip on the EUR/USD. Experienced traders will be interested in HFM’s ZERO Spread Account, with EUR/USD spreads starting at 0.0 pips and a 6 USD commission. All accounts are available as Islamic accounts.

HFM supports both the MT4 and MT5 platforms – but unlike most other brokers does not offer its own web-based platform – and has several excellent trading tools to assist traders further. Unfortunately, access to better trading tools like Autochartist, which other brokers offer as a free service, requires an account balance of 100 USD – well above the required minimum deposit.

HFM does not charge any withdrawal or deposit fees and deposits can be made quickly through local Nigerian banks. It allows hedging, scalping, and copy trading and offers an excellent selection of educational and market analysis materials to get new traders started. HFM has a dedicated Nigerian customer service team and a local toll-free customer service number.

Our overall Verdict on AvaTrade

AvaTrade is an internationally regulated beginner-friendly CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds, vanilla options, and ETFs. AvaTrade has received extensive industry recognition for AvatradeGO, one of the most popular mobile trading applications available globally and, unlike many European brokers, has a local Nigerian customer support team. 

AvaTrade’s single commission-free account has a minimum deposit requirement of 100 USD and has average trading costs for a market maker broker, with spreads starting at 0.90 pips on the EUR/USD. In terms of trading platforms, AvaTrade offers a wider choice than most brokers, with support  MT4, MT5, AvaOptions, and its proprietary web trader platform. The same is true for the trading tools available, with Avatrade offering Trading Central, Duplitrade, and AvaProtect, its own innovative risk management system.  Furthermore, Avatrade does not charge any deposit or withdrawal fees and provides an excellent selection of educational materials to get new traders started.

Which broker has the highest overall rating?

HFM (HotForex) has an overall rating of 4.43 and AvaTrade has an overall rating of 4.38. For more detail please read our reviews of HFM (HotForex) and AvaTrade.

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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