HYCM.com: What 40 Years Of Experience in Finance Can Teach A Broker?
HYCM belongs to a leading global corporation called The Henyep Group and is one of the oldest market players I know – they started back in 1977 at Hong Kong exchange, got to New York in 1980, and proceeded to London in 1994. In 1999, the company went online and expanded in multiple directions, creating new online and offline services. HYCM.com as we know it appeared after the consolidation in 2016. Let’s see if 40 years of experience give HYCM an advantage that other brokers lack (spoiler: it doesn’t).
Henyep Capital Markets (UK) Limited (‘HYCM’) is authorized and regulated by the Financial Conduct Authority (FCA) under Company reference number 186171, and CySEC (259/14). This is a pretty solid regulation for a broker, so the legal part is stainless. I’d like to mention that according to the Internet tales, some time ago a bunch of people suffered from H.Y. Markets – a fraudulent HYCM clone. This clone received certain legal complaints that ricocheted into HYCM, but now the evil doppelganger is dead, and the broker works just fine.
The set of trading tools showcased on HYCM website looks good: one can choose from a wide variety of options in Forex, metals, indices, oil/gas, commodities, and stocks.
Accounts, Spreads, & Leverage
As you see, HYCM offers 3 account types with different conditions. Their spread is pretty high: it starts from 1,5 pips, which is more than you would expect these days. Maximum leverage is limited by 1:200 for all account types – not the greatest deal you can think of, too.
Surely, this is not the worst set of conditions, but there’s one thing that I find confusing: their min deposit starts from $100 for Micro accounts and goes up to $10 000. When I compare these numbers with FBS conditions (maximum initial deposit is $1000 for ECN accounts, and the overall conditions are more appealing), I expect this broker to offer something really special. Unfortunately, it didn’t.
Available Trading Platforms
At HYCM, traders can choose from MetaTrader 4 and HYCM mobile app. My experience say that you will be satisfied with both. However, I found multiple comments on boards saying the platforms start playing dirty tricks when customer’s deals become too profitable. People say execution time can go from 200 ms up to 5 seconds once your income gets higher, and MT4 freezes at the critical moments. I can neither approve nor disapprove this information – my trading was okay, but I didn’t go hard. Meanwhile, using plugins to delay trades is a widespread technique that many shady brokers use to filter those who withdraw too much money in the end of the day.
For a reason I can’t explain, HYCM support sometimes takes quite a while to answer livechat questions. Older feedback says the company seemed to have serious support problems in the past: particularly, there were complaints considering account managers’ professional skills.
Before I go any further, I want to clarify that I obviously couldn’t write a complete review that would be an unquestionable truth for everyone. My experience is limited, and I think that some negative comments could come from the users of a fraudulent H.Y. Markets that was active some time ago. We can only guess how many decent-looking negative reviews are coming from the victims of that clone, and how many of them are real.
HYCM is not really into specials: the only “special” you can find there is the “refer-a-friend” thing – you can get an opportunity to receive trading credits up to $250 in case you bring a friend that funds his account and trades with HYCM.
It seems like 40 years of experience in financial service sector taught HYCM to be average, don’t cross the line, and stay late 2000-s regardless of changes happening on other brokers’ side. Its legal status and extensive experience make me respectful, but sometimes HYCM feels like those old folks whom people listen to just because they’ve seen some shit and was around for a long time. But deep inside everybody knows this old man is out of the loop and need to go and enjoy a well-deserved retirement.
What I’m trying to say is that brokerage is a quickly-developing, progressive, and competitive niche that requires changes and fresh moves. HYCM seems to enjoy maintain the status quo, which is disturbing for me and many other traders.