HYCM and their MetaTrader Platforms

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Behind the acronym HYCM are several companies regulated by various supervisory authorities.

HYCM Capital Markets (UK) Limited is authorized and regulated under the Financial Conduct Authority (FCA) with reference number 186171; HYCM (Europe) Ltd is authorized and regulated under the Cyprus Securities and Exchange Commission (CySEC) under license number 259/14; HYCM Ltd is authorized and regulated under the Cayman Islands Monetary Authority under reference number 1442313; HYCM Capital Markets (DIFC) Limited is authorized and regulated by the Dubai Financial Services Authority with license number F000048. Under the FCA and CySEC regulations, companies are required to segregate the money that retail clients deposit to prevent the use of customer funds by companies for their own account. The companies are part of the Henyep Capital Markets Group, an international conglomerate with businesses in financial services, property, education, and charity. HYCM has 40 years of experience providing reliable services to its global customer base with a reputation that is unsurpassed, the company said. In addition, the company announced that it has won numerous awards by presenting them on its website.

The company product portfolio consists of over 100 instruments distributed in 4 asset classes. Over 70 of them are currency pairs and the rest are commodities, indices, and shares. The minimum spread for the EUR/USD pair depends on the account type and is from 0.1 to 1.5 pips. As an FCA-regulated brokerage firm, the trading leverage is set to 30:1 for major currency pairs, 20:1 for non-major currency pairs, gold, and major indices and 10:1 for silver and other commodities.

There are three types of accounts, which differ in the required initial deposit, the spread offered and whether the trade is subject to a commission. The “Fixed” account requires USD 100 as an initial deposit sum and offers instruments with fixed spreads (1.5 pips for the EUR/USD pair) and commission free trading. You cannot use expert advisors here. The “Classic” account requires USD 100 as a minimum deposit amount and offers instruments with floating spreads from 1.2 pips. Trading is commission free, and you can use automated trading. You must invest at least USD 200 to open a “RAW” account. At the expense of narrower spreads of the, you will be charged a commission of USD4 per standard traded lot.

The company provides its services through the well-known MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms.

MetaTrader 4 is the most widely used trading platform that has become an industry standard thanks to its advanced technology. The platform offers many opportunities for traders at all levels, along with advanced technical analysis, flexible trading systems and expert advisors, as well as mobile trading applications. The terminal can be downloaded for PC or as a mobile app.

MetaTrader 5 is a powerful multifunctional platform, including advanced technical analysis, fundamental analysis, flexible trading systems and compatibility with automated trading applications (trading robots, expert advisors). It is the newer version of the terminal that has improved charting tools and more pending orders. The platform can be downloaded for PC, as well as a mobile app for iOS and Android devices.

The “Customer Agreement” file shows that all retail clients are covered by the negative balance protection policy. It ensures that if trading losses exceed your account’s equity during volatile market conditions, the negative balance will be reduced to zero.

It also informs that HYCM does not guarantee that the placement of a stop loss order will fully protect against excessive losses being incurred on your account. They may not always be effective because market conditions or technological limitations may make it impossible to execute such orders. They are not guaranteed by HYCM and for example, if the market moves through a stop loss price level without trading at it, the stop loss order will not be executed at the stop loss price but will be triggered and executed at the first available market price. This means that all orders are subject to slippage and stop loss orders are not guaranteed.

The same document shows that HYCM acts as the market maker and the matched principal to all Transactions executed by you with HYCM. HYCM, as facilitator, interposes itself between the buyer and the seller to the transaction in such a way that it is never exposed to market risk throughout the execution of the transaction, with both sides executed simultaneously and the transaction is concluded at a price where the facilitator makes no profit or loss, other than a previously disclosed commission, fee, or charge for the transaction. Being a market maker leads to a conflict of interest. However, the company emphasizes that it acts as a matched principal and is not exposed to market risk. This means that there should be no conflict of interest.

Overall, HYCM is both a market maker and a matched principal, so we cannot say with certainty whether the underlying conflict of interest exists. It is authorized and regulated by many authorities including the FCA and CySEC. It offers the most popular platforms in the industry – MT4 and MT5. You can start trading by investing at least USD 100.

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