How Does the HFCopy Account Work?
How Does the HFCopy Account Work?
Copy-trading has become really popular in recent years with the rapid development of the FX industry. This is a trend that attracts even more customers. HotForex broker is one of such names that also incorporated this pattern for clients. The principle of copy trade is simple. Basically what happens is some traders can be “influencers” some can be “followers”. When an “influencer” places a trade, the “followers” are notified who can then open the same trade. The influencer gets a performance fee of around 50%, while followers get to place pretty nice trades.
Various FX brokers offer different conditions for copy trade, but on HotForex there are Strategy Providers. By opening an account and depositing funds, you start copying their trades and after that pay a performance fee. This particular feature is useful for newbie traders, who are just making their first steps in FX trading.
HotForex Account Details
HFCopy account is one of several accounts that you can try out on HotForex. We have already pointed out that this account involves copy trading, but there are other details to consider. It supports MetaTrader 4, Webtrader, and mobile trading platforms. The leverage is 1:400, while the maximum is 1:1000 for other accounts. Available trading instruments include Forex, Gold, Bitcoin, Indices Spot. Spreads on the HFCopy account start from 1 pip. In order to open an account, you need to deposit $100 if you are a follower. The minimum trade size is equal to 0.01 lot. There are no commissions.
Available Trading Platforms
At the present moment, HotForex’s copy account includes the following platforms: MetaTrader 4, Webtrader, and Mobile Trading. Basically, you can try out everything that you prefer. MT4 is by far the best platform, widely used in trading and it needs no further explanation – this platform really eases the trading process for beginner as well as experienced traders.
Webtrader in its turn is a Web interface that copies and packages your submission on your desktop. It is less popular than MetaTrader but is used widely. As for the mobile trading platform, this is something that gradually establishes itself in the Forex market and a lot of people are turning to mobile apps.
Available maximum leverage for the HFCopy account as we have already mentioned is 1:400. This is a decent rate – neither too high nor too low. However, while leverage is a beneficial tool for traders sometimes it could cause problems as well, so in essence, it is a double-edged sword. Compared to micro accounts, the HFCopy account has lower leverage, when its counterpart offers maximum leverage of 1:1000.
We should also indicate margin call/ stop out levels, which are 50% and 20% respectively.
Spreads types in general are variable on HotForex broker but actually spreads start from 1 pip. Minimum spreads indicate good liquidity providers. Spread is the range between the price for which paper or currency is sold and the price for which they are bought, at one and the same time. These are different prices by great value since buyers want to buy at a cheaper price, and sellers want to sell as much as possible. It should be noted that HotForex follows general patterns.
Pros & Cons of HFcopy Account
Of course, when we are talking about any kind of Forex account there are both pros and cons that we should go through. In order to thoroughly understand the specifics of HotForex’s copy account, it is necessary to consider both advantages and disadvantages. Let’s review them below and find out more about them.
First, we should start with the pros because this is why we have decided to have a closer look at this account. The advantages of the HFCopy account are vast and here we will review some of them such as the absence of commission fees, 60 standard lots per position, and 0.01 minimum trade size.
When traders especially the rookie ones are making their first steps in the Forex industry they are looking for accounts that offer them the best conditions. If we thoroughly review the HFCopy account, we can notice that it does not have additional commission fees, making it more attractive for customers. A lot of accounts include fees that charge traders with extra money.
60 Standard Lots per Position
The amount of standard lots per position is really important and in the case of the HFCopy account, this is something particularly important. Forex is commonly traded in specific amounts called lots. The more the better and 60 standard lots per position will not leave anyone disappointed.
0.01 Lot Minimum Trade Size
The HFCopy account offers a minimum size of 0.01 lot for trade. 0.01 lot size may be difficult to understand at first, but there is nothing to worry about In essence, it means that when a trade is placed in such a size it will take 10 pips to give you a profit of $1. it will also take 100 pips to give you a $10 profit.
We have already mentioned that alongside the pros there are certain disadvantages worth mentioning to better understand the drawbacks of the account. Even though we cannot single out a lot of them, they still need to be mentioned. These are minimum deposits, no bonus and limitations on followers.
Minimum opening deposits are different for strategy providers and followers. We are more interested in followers and in this case, it is equal to $100. Still, such an amount is not little for people who are just making their first steps in trading and this can be considered as a disadvantage.
There is no kind of bonus whatsoever offered by the Forex broker on this particular account. As soon as you create an account you should start trading and that’s it – HotForex offers no promotions for new clients to make their trading experience better, which is a slight disadvantage for rookie traders.
Limitations on Followers
Unless otherwise agreed with the Forex broker, there is a limitation set on followers in the range of 100-400. It could be disappointing for traders because they might be looking for new opportunities and if the limit is already reached there is no way to add more customers.
FAQ on HFcopy Account
What is HFcopy?
HFCopy is a type of account available for traders who are looking for experienced traders with the aim to copy their traders and increase the amount of money earned from trading. In an HFCopy account, you will come across Strategy Providers who share their strategies with people known as followers. After the successful traders, the latter should pay performance fees.
How do I cancel my HFcopy account?
You can unfollow strategy providers any time you want on the website. You can choose this option from the button available on your account. If you do not wish to continue with the account there is also a possibility to cancel your account, and it is always a good idea to contact the broker directly.