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XM and HFM are two of the most popular MetaTrader brokers for traders in Asia, Africa, the Middle East and Latin America. Both have tiny minimum deposits, MT4 and MT5, high leverage through offshore companies and built in copy trading, so on paper they look very similar. The real differences are in account pricing, regulation and the range of markets you can trade.
The short answer: XM is the better choice for beginners and for traders who want more than forex, thanks to its $5 minimum deposit, Micro accounts, commission free Ultra Low account and about 1,400 instruments. HFM is the better choice for active forex traders who want raw spread pricing, an FCA regulated UK company or PAMM accounts. Both brokers score 4.0 out of 5 in our reviews.
XM vs HFM at a glance
| XM | HFM | |
|---|---|---|
| Our rating | 4.0 out of 5 | 4.0 out of 5 |
| Founded | 2009 (Trading Point group) | 2010 (as HotForex, renamed HFM in 2022) |
| Regulation | CySEC, ASIC, DFSA and FSC Belize | FCA, CySEC, FSCA, CMA Kenya and FSA Seychelles |
| Company for most international clients | XM Global Limited (FSC Belize) | HF Markets (Seychelles) Ltd or HF Markets (SV) Ltd |
| Minimum deposit | $5 ($10,000 for the Shares account) | $0 on most accounts ($100 for Pro) |
| Spread only accounts (EUR/USD) | Standard about 1.6 to 2.0 pips; Ultra Low about 1.1 pips on average | Premium from 1.4 pips; Pro from 0.6 pips |
| Raw spread account | Not offered to international clients | Zero: from 0 pips plus $6 per lot round turn |
| Maximum leverage | 1:30 in the EU, Australia and Dubai; up to 1:1000 offshore | 1:30 in the UK and EU; up to 1:2000 offshore |
| Platforms | MT4, MT5 and the XM app | MT4, MT5, the HFM app and WebTrader |
| Total instruments | About 1,400 | About 500 |
| Copy trading | XM Copy Trading | HFcopy, plus PAMM and MAM accounts |
| Inactivity fee | $15 after 12 months, then $5 a month | $5 a month after 6 months, rising each year |
| Deposit and withdrawal fees | Free deposits; withdrawals free above $200 | Free for most methods |
| US clients | Not accepted | Not accepted |
Trading costs: HFM is cheaper by default, a tie at the top
On the everyday spread only accounts, HFM has the edge. Its Premium account starts from 1.4 pips on EUR/USD, while the XM Standard account averages about 1.6 to 2 pips. If you open the default account and never change it, HFM will usually cost you a little less.
The gap closes once you pick the right account. The XM Ultra Low account charges no commission and XM publishes an average EUR/USD spread of about 1.1 pips, with the same $5 minimum deposit as its Standard account. The HFM Zero account charges raw spreads from 0 pips plus $6 per standard lot round turn, and ForexBrokers.com measured an all in EUR/USD cost of about 1.1 pips on it. That puts the two best accounts level at roughly $11 per round turn lot. ForexBrokers.com also gives both brokers 4 out of 5 for fees.
HFM offers more pricing choice. Its Pro account has spreads from 0.6 pips with no commission for a $100 deposit, and the Zero account is open to international clients. XM does not offer a raw spread account to clients of XM Global.
Watch the inactivity fees. XM charges a one off $15 after a year without trading, then $5 a month. HFM starts charging after only six months, at $5 a month, and the fee rises each year the account stays dormant.
Regulation and safety: depends on where you live
Both brokers serve most international clients through offshore companies, so the protection you get depends on your country. XM Global Limited is licensed in Belize, while HFM clients usually join its Seychelles company or its St Vincent and the Grenadines company. None of these offshore companies offers a compensation scheme like the €20,000 Investor Compensation Fund available to EU clients of both brokers through CySEC.
Outside the EU, HFM holds an FCA license in the UK, plus local licenses in South Africa (FSCA) and Kenya (CMA). XM holds licenses from ASIC in Australia and the DFSA in Dubai. XM offers negative balance protection to all clients. ForexBrokers.com gives XM a Trust Score of 93 out of 99 and HFM 86 out of 99, so XM has a small edge on trust overall, while HFM is the stronger choice for UK and South African traders.
Platforms, research and education
Both brokers are MetaTrader brokers first, with MT4 and MT5 on every main account. XM adds its own app with TradingView charts, account management and copy trading, but it has no desktop or web version and does not run Expert Advisors. HFM adds its own app and a WebTrader, though the app charting is basic and most serious HFM traders stay on MetaTrader.
XM is stronger on learning material. It runs a large free education program in around 20 languages, and ForexBrokers.com ranks XM 8th out of 63 brokers for research, against 20th for HFM.
Range of markets: XM offers far more
ForexBrokers.com counts 1,394 tradeable instruments at XM and about 500 at HFM. The difference is mostly stock CFDs, where XM lists around 1,200. XM Global clients can also buy real shares, without leverage, through the Shares account on MT5, which needs a $10,000 deposit. If you mainly trade forex and gold, both brokers cover what you need.
Copy trading
XM Copy Trading runs through the XM app and is available to XM Global clients, who cover most countries. HFM offers HFcopy inside its app and client area, where you can filter strategy providers by gain, drawdown and risk score, plus PAMM and MAM accounts for money managers on MT4. HFM gives you more ways to copy or allocate to other traders. For more options, see our guide to the best copy trading brokers and our RoboForex vs HFM comparison.
Which should you choose?
Choose XM if:
- You are new to trading and want to start with $5 and micro lots
- You want stock CFDs, indices and real shares as well as forex
- You want low costs without paying commission, through the Ultra Low account
- You value free education and research
Choose HFM if:
- You trade forex actively and want raw spreads plus commission
- You live in the UK, South Africa or Kenya and want a locally regulated account
- You want PAMM or MAM accounts as well as copy trading
- You want no minimum deposit at all
Read our full XM review and HFM review, see how XM compares with Exness in our Exness vs XM comparison, or compare more options in our guide to the best forex brokers. Ready to open an account? Visit XM or visit HFM. Your capital is at risk.
XM vs HFM: frequently asked questions
Is XM better than HFM?
For beginners and for traders who want a wide range of markets, XM is the better fit, with a $5 minimum deposit, Micro accounts, a commission free Ultra Low account and about 1,400 instruments. For active forex traders who want raw spread pricing or an FCA regulated account, HFM is the better fit.
Which is cheaper, XM or HFM?
On the default accounts HFM is a little cheaper: its Premium account starts from 1.4 pips on EUR/USD, against about 1.6 to 2 pips on the XM Standard account. On the best value accounts, XM Ultra Low and HFM Zero, the all in cost on EUR/USD is about the same, roughly 1.1 pips.
Is XM regulated?
Yes. XM companies are regulated by CySEC in Cyprus, ASIC in Australia and the DFSA in Dubai. Most international clients join XM Global Limited, which is licensed by the Financial Services Commission of Belize.
Is HFM regulated?
Yes. HFM companies are regulated by the FCA in the UK, CySEC in Cyprus, the FSCA in South Africa and the CMA in Kenya. Most international clients join HF Markets (Seychelles) Ltd, regulated by the Seychelles FSA, or HF Markets (SV) Ltd in St Vincent and the Grenadines.
What is the minimum deposit at XM and HFM?
XM asks for $5 on its Micro, Standard and Ultra Low accounts and $10,000 for the Shares account. HFM has no minimum deposit on most accounts and asks for $100 on the Pro account.
Do XM and HFM accept US clients?
No. Neither broker accepts US residents. See our guide to the best forex brokers in the USA for regulated alternatives.
Facts checked in October 2026 against each broker’s website, ForexBrokers.com and other independent reviews, as listed in our full reviews. Fees and terms change, so confirm the current figures on the broker’s site before you open an account.