19 Jun 2021

admin

Overall score: 85

Official Site

Available in Colombia?

Yes

Average Spread for EUR/USD

1.3 pips

Founded in

2010

Maximum leverage

1:1000

Regulation

FCA, DFSA, FSCA, FSA.

Platforms

MT4, MT5

Minimum deposit

5$

Instruments

Forex, CFDs on metals, energy assets, stocks, indices, bonds, commodities and ETFs.

HotForex is an FX and CFD broker with a wide range of instruments and good support system in Colombia. However, it lacks cryptocurrency trading and a beginner-friendly platform.

HotForex Facts

  • Available in Colombia? Yes.
  • Founded in: 2010.
  • Regulation: FCA, DFSA, FSCA, FSA.
  • Minimum deposit: 5 USD.
  • Maximum leverage: 1:1000.
  • Platforms: MT4, MT5.
  • Instruments: Forex, CFDs on metals, energy assets, stocks, indices, bonds, commodities y ETFs.
  • Average spread for EUR/USD: 1.3 pips.
Rating
Spreads and commissions ⭐⭐⭐
Instruments ⭐⭐⭐⭐
Platforms ⭐⭐
Payment methods ⭐⭐⭐
Support ⭐⭐⭐⭐⭐
Resources ⭐⭐⭐⭐
Education ⭐⭐⭐
General ⭐⭐⭐⭐


What is HotForex? Opinions and analysis

HotForex is a broker founded in 2010 and registered in St. Vincent and the Grenadines that offers Forex and CFD trading on stocks, commodities, bonds, indices and ETFs.

The company has over 2.5 million live accounts and nearly 200 employees spread across the globe. The company is also an award-winning company, having received more than 45 awards in the industry.

We opened an account with HotForex to find out what they offer in Colombia, and this is what we found.

Is HotForex legal in Colombia? These are their licenses

HotForex_sertifikat

We can confirm that HotForex is legal in Colombia. We found that the broker is supervised by come four institutions: FCA of the United Kingdom, DFSA of Dubai, FSCA of South Africa and FSA of Seychelles.

Being monitored by these organizations, HotForex is obliged to take various measures to protect its users' money and information. For example, the company keeps your funds in segregated bank accounts and offers negative balance protection, which prevents you from losing more money than you deposit.

In addition, HotForex has a 5 million euro insurance policywhich protects you against a variety of financial risks, such as fraud, scams and theft. That means your business is unlikely to disappear overnight due to financial problems.

With that in mind, we believe that trading at HotForex from Colombia is as safe as opening a bank account.

HotForex is regulated by four different entities and has a 5 million euro insurance policy. It is completely safe to trade here.

How to register at HotForex from Colombia in 7 steps

Creating an account on the HotForex platform is easy. To complete this process, you need photos of your ID (both sides) and a utility bill:

  1. Log in to HotForex and click the "Open Live Account" button.
  2. On the Accounts tab, choose "Individual".
  3. Complete the form with basic information and click "Register".
  4. The broker will send you a verification email. Open the message in your inbox and click on "Activate account".
  5. Now, you'll need to fill out a form with more specific information. Once you do, click "Save and continue".
  6. At this point you will have to send the photos of your ID card and the receipt. This is a legal requirement to combat money laundering and prevent identity theft. Upload your ID in the "PLE" section and your receipt in the "POA" section.
  7. The last step is to make a deposit. Choose the payment method you prefer, indicate the amount and click on "Deposit".

Once you complete the registration, you will receive an email with your login ID and password. And we must say it: we don't like that. This is a dangerous practice, because if someone gets access to your email, they can take over your trading account.

HotForex Account Types

In this trading platform you can choose from 6 account types with different spreads, leverage and minimum deposit requirements:

Micro Premium Zero Spread
Minimum deposit 5 USD 100 USD 200 USD
Spreads From 1 pip From 1 pip From 0 pips
Commissions N/A N/A 6 USD per lot (buy and sell)
Maximum leverage 1:1000 1:500 1:500
Platforms MT4, MT5 MT4, MT5 MT4, MT5
Minimum volume per order 0.01 batches 0.01 batches 0.01 batches
Recommended for Beginners, test strategies Experienced traders Scalpers, Expert Advisors, Intraday Traders

 

Auto PAMM Premium HFCopy
Minimum deposit 200 USD 250 USD Strategy providers: USD 500
Followers: 100 USD
Spreads From 1 pip From 1 pip From 1 pip
Commissions N/A N/A N/A
Maximum leverage 1:500 1:300 1:400
Platforms MT4 MT4 MT4
Minimum volume per order 0.01 batches 0.01 batches 0.01 batches
Recommended for Trading signals Investment Managers Experts and beginners interested in Copy Trading

In addition to the above, HotForex offers a demo account for MetaTrader 4 and 5 trading platforms. Here you can use a balance of up to 100,000 virtual credits and a leverage of up to 1:1000 to learn the markets or test strategies without any risk.

Here's more about each type of account:

Micro

HotForex_micro

With your minimum deposit of only 5 USD and minimum order size of 0.01 lots, the Micro account is a reliable option if you are a beginner or want to test trading strategies.

Another great advantage of the Micro account is its leverage of 1:1000which allows you to get the most out of a small investment. However, its maximum limit per trade is only 7 lots.

Premium

HotForex_premium

This account is the one you would normally use as a HotForex trader, as it allows you to open trades of up to 60 lots.

The Premium account has a maximum leverage of 1:500 (lower than Micro, but a high level anyway) and a minimum deposit of 100 USD. As for the trading platform, you can use MT4 and MT5.

Zero Spread

HotForex_Zero_Spread

This is the best option if you are a scalper, intraday trader or use any of the following strategies high frequency where you need the lowest spreads.

The Zero spread account, as the name suggests, has spreads starting from zero pips. In return, you will have to pay a commission of 6 USD/lot per full order (buy and sell). To use this account you must make a deposit of at least 200 USD.

Auto

HotForex_Auto

The Auto account is perfect if you want to use trading signals for MetaTrader 4. Basically, these signals are buy and sell suggestions prepared by expert traders. If you want to use them, you will usually have to pay a commission.

Whether you are a beginner who doesn't know the market well, or an experienced trader who wants to save time, this account is for you. However, you should remember that the minimum deposit is 200 USD and that you can only use the MetaTrader 4 trading platform.

PAMM Premium

HotForex_PAMM_Premium

The PAMM account is intended for investment managers that manage resources of several people. This account requires a deposit of only 250 USD and has a maximum leverage of 1:300.

It is worth mentioning that the PAMM account has market execution and spreads starting from 1 pip. However, you will not have to pay commissions for your trades. 

HFCopy

HotForex_HFCopy

Finally, HotForex offers an account with features for Copy Trading. If you want to copy the orders of more experienced traders, or share your trades with others in exchange for a commission, this option is for you.

To use this account as a follower (the one who copies operations), you will have to make a minimum deposit of 100 USD. But if you are a strategy provider (who offers trades for copying), you will have to deposit at least 500 USD.

Trading platform

HotForex has two platforms: MetaTrader 4 and MetaTrader 5. While these are great options, we regret that there isn't more beginner-friendly software (for example, like IQ Option's platform).

MetaTrader 4 MetaTrader 5
Desk
Web
Mobile
Economic calendar
Temporalities 9 21
Indicators 30 38
Objects of analysis 31 44

MetaTrader 4

HotForex_MetaTrader4

MetaTrader 4 is the most famous trading platform in the world, as well as one of the most functional. This software has several useful featuresranging from dozens of indicators and graphical elements, to trading signals and expert advisors.

This platform is certainly one of the most powerful platforms for trading. However, is not the friendliest with new users. Therefore, you may feel overwhelmed if you have never traded the markets before and start with this software.

A great advantage of MetaTrader 4 is its accessibility. This software is available as a Windows program, web application, and mobile apps for Android and iOS.

MetaTrader 5

HotForex_MetaTrader5

MetaTrader 5 is a more advanced and faster version of MetaTrader 4, although it does not enjoy the same popularity.

This software has more functions than its predecessorThe trading platform offers a wide range of features, such as more timeframes, technical indicators and improved trade execution. However, it is not the favorite choice of many, so it lacks some features such as trading signals and expert advisors.

The MetaTrader 5 platform is also available for computers, Internet browsers, Android and iOS devices.

If you have to choose a trading platform at HotForex, our recommendation is MetaTrader 4. Despite being the oldest software, it has a large community that makes it the best choice.

The best trading platform on HotForex is MetaTrader 4, as it has a large community around it.

HotForex trading instruments

HotForex has a list of more than 1200 instruments ranging from currencies and stocks, to oil and indices. However, we were a little disappointed to find no cryptocurrency trading. 

💵 Forex
Instrument Average Spread Leverage
EUR/USD 1.3 pips 1:1000
GBP/USD 1.7 pips 1:1000
USD/JPY 1.7 pips 1:1000

This broker has a list of more than 50 currency pairs, which includes both major (such as EUR/USD and GBP/USD) and exotic crosses (for example, USD/RUB and GBP/ZAR). For Forex trading, you can apply leverage up to 1:1000.

🛢️ Oil
Instrument Average Spread Leverage
Brent spot 0.08 pips 1:66
WTI spot 0.09 pips 1:66
Brent Futures 0.07 pips 1:66
WTI Futures 0.11 pips 1:66

HotForex has spot and futures trading on the two benchmark oils: Brent and WTI. The broker offers low spreads for these instruments (though not the lowest we have found), as well as a decent leverage of up to 1:66.

🌽 Raw Materials
Instrument Average Spread Leverage
XAU/USD 0.29 pips 1:200
Platinum 4.31 pips Flexible
Coffee 0.98 pips Flexible

HotForex is an excellent choice for commodities trading, as it offers trading in precious metals and commodities such as coffee, sugar or cocoa. These instruments may be for you if you prefer fundamental analysis to technical analysis.

🗠 Actions
Instrument Average Spread Leverage
Amazon 1.3 pips 1:14
Facebook 0.6 pips 1:14
Google 1.09 pips 1:14

On this trading platform you can trade stocks of the world's leading companies, such as Amazon, Alibaba, Facebook and Google. Stocks are a good medium to long term investment vehicle. 

📝 Bonds
Instrument Average Spread Leverage
Euro Bund 0.05 pips 1:50
UK Gilt 0.05 pips 1:50
U.S. Treasury Bond (10-year). (10-year) 0.07 pips 1:50

If you want to diversify your investments with low-risk instruments, government bonds are an excellent alternative. HotForex offers trading in US, UK and European government bonds.

💰 ETFs
Instrument Average Spread Leverage
BETZ N/A 1:5
EPP N/A 1:5
ITA N/A 1:5

HotForex offers ETF trading; an option we rarely come across. The platform has funds on all kinds of industries, such as defense, basic materials, financials, energy, transportation, real estate and more.

📈 Indexes
Instrument Average Spread Leverage
Dow Jones 2.57 1:200
S&P 500 0.41 1:200
DAX 30 1.41 1:200

Here you can trade the main stock indices of the world, such as the Dow Jones, the DAX 30 and the S&P 500. It is worth mentioning that this company offers a good leverage of up to 1:200 for index trading.

HotForex payment methods for Colombia

HotForex offers several payment methods for Colombian traders. Among the available options are:

Bank transfer Credit cards eWallets Cryptocurrencies
Minimum deposit 10 USD 5 USD 5 USD 5 USD
Processing time (deposits) Up to 2 business days Instant Instant Instant
Processing time (withdrawals) Between 2 and 10 working days Between 2 and 10 working days Instant Up to 2 business days
Commissions N/A N/A N/A 1 %
Comments You can deposit with Colombian banks. A practical option for depositing. Our favorite alternative, as it is quick and easy to use. If you use cryptocurrencies, you can use this service.

Bank transfer

A great advantage of HotForex is that it allows you to deposit with certain Colombian banks. With this option, you can top up your account from 10 USD and without paying additional fees.

However, the broker processes withdrawals via international bank transfers. This means that you will receive payments in foreign currency within 1 to 10 business days. Also, depending on your bank, you may have to pay a fee.

Credit cards

This broker accepts deposits with Visa and Mastercard. The biggest benefit is that you can top up instantly and from as little as 5 USD.

It is worth mentioning that you can also use the virtual cards generated by some platforms such as Daviplata or Nequi.

However, when withdrawing, you will have to indicate a bank account. This is because the broker makes payments on credit cards only up to the amount you have deposited.

eWallets

eWallets are online payment gateways such as Skrill, NETELLER and WebMoney. This is our preferred method, as it is fast, safe and easy to use.

Another advantage of eWallets is that you can recharge them with Colombian payment methods, such as PSE, Efecty and supermarkets Éxito. Therefore, they are a great option if you have cash and don't know how to deposit it to the broker.

Cryptocurrencies

If you manage cryptocurrencies and want to use them for trading, you can do it at HotForex. This broker processes deposits and withdrawals with Bitcoin, Ether, Litecoin and other digital currencies via Bitpay.

Please note that, when withdrawing by this means, you will have to pay a commission of 1 %. This is an expense that other forms of payment, such as eWallets and credit cards, do not have.

The best HotForex payment method for Colombian traders are eWallets, as they are fast and easy to handle.

HotForex Customer Support in Colombia

HotForex_cliente

One thing that we liked about HotForex is their localized support. This company provides consultancy through e-mailWe are a live chat and phone number during business hours in Colombia and in native Spanish.

We used the chat to clarify some doubts about the availability of instruments. In a few seconds, a kind advisor attended us and cleared all our doubts. We must say that We were pleased with the service.

With that in mind, we can say that HotForex offers reliable, fast and efficient support in our country. And that is a support we hold in high esteem.

HotForex Verdict

Pros and cons
️Support located in Colombia No cryptocurrency trading
️Wide range of instruments Trading platforms are not friendly to new users
️Low minimum deposit No binary options

Considering the variety of instruments and high level of leverage, we can say that HotForex is a good broker for intermediate or advanced traders.

The company's platforms (MT4 and MT5) are not the most user-friendly, which can be a problem if you are just starting out in trading. 

Also, the broker does not have digital currency trading, so you will have to look for another company if you were planning to trade Bitcoin, Ether, etc.

Even so, HotForex can be an excellent choice for trading Forex, commodities and derivatives, provided you have good fundamentals as a financial trader.

Frequently Asked Questions

Is HotForex a regulated broker?

Yes, HotForex is regulated in four different entities, which are FCA UK, FSA Seychelles, FSCA South Africa and DFSA Dubai. Therefore, it is a legal company that complies with the necessary regulations to safeguard clients' funds.

How do I make a HotForex deposit from Colombia?

You have to register at HotForex and verify your account by sending photos of your ID and a utility bill. After that, you should log in and look for the "Deposit" button. There you will be able to choose your favorite payment method and the amount to top up.

Does HotForex offer binary options?

No. HotForex offers only Forex and CFD trading on different asset classes. In fact, binary options are a difficult derivative instrument to find in Colombia. Only a few brokers like IQ Option and Olymp Trade offer them in our country.

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