Hotforex Review 2021
Hotforex is our #1 rated forex broker for traders in Nigeria. Tight spread, top tier FCA & FSCA regulation, quality customer support, easy withdrawals & deposit makes it one of the best forex and CFD brokers in Nigeria.
Hotforex is one of the best forex and CFD brokers available in Nigeria. The broker is well regulated and has been trusted by a large number of traders in Nigeria. We liked the competitive spreads, quality customer support, and free local bank deposits/withdrawals. The availability of the Naira (NGN) trading account is a lucrative advantage for traders in Nigeria.
Hotforex is an STP broker launched in 2010 and is very popular among new as well as experienced traders in Nigeria. It is regulated by multiple top-tier regulatory authorities and offers a wide variety of trading instruments.
Hotforex also has local offices in Ikeja & Abuja, Nigeria, and a local phone number for customer support, which is a major advantage for Nigeria Traders.
Read our detailed review of Hotforex before selecting any forex and CFD brokers in Nigeria. We have discussed the pros and cons that you need to consider before choosing Hotforex.
Hotforex Nigeria Pros
- Hotforex is regulated by 3 top-tier regulators i.e. FCA, FSCA, and CySEC which makes them safe for traders in Nigeria.
- Hotforex also offers a Naira trading account with Naira as a base currency. They have USD, EUR currency accounts too.
- The spreads at Hotforex are comparatively lower than most of the brokers in Nigeria.
- Hotforex allows free deposits and withdrawals through local banks of Nigeria.
- Excellent customer support with 24/5 live chat, email, and local phone number during business hours.
- low minimum deposit of ₦1800 to start trading.
Hotforex Nigeria Cons
- Hotforex is not publicly listed on any global stock exchange.
- Hotforex does not offer a fixed spread account type.
- cTrader platform is not available.
Hotforex Nigeria – A quick look
|👌 Our verdict on Hotforex||#1 Forex Broker in Nigeria|
|🏦 Broker Name||Hotforex Nigeria|
|💵 Typical EURUSD Spread||1.2 pips (with Micro MT4 Account)|
|📅 Year Founded||2010|
|💰 Hotforex Minimum Deposit||₦1800|
|⚙️ Maximum Leverage||1:1000|
|⚖️ Hotforex Regulation||CySEC, FSA, FSCA|
|🛍️ Trading Instruments||53 currency pairs, 1000+ CFDs on Indices, Cryptos, Metals, etc|
|📱 Trading Platforms||MT4 & MT5 for desktop, web & mobile|
Is Hotforex Safe?
Hotforex is reputed and safe forex and CFD broker as they are regulated by multiple top tier regulatory authorities. Hotforex was launched in 2010 and has won numerous awards and recognition for excellence in the forex and CFD broking segment.
Hotforex is regulated by these 3 major Top Tier Regulators:
- FCA – Hotforex is regulated by Financial Conduct Authority (UK) under reference number 801701.
- FSCA – Financial Sector Conduct Authority (South Africa) under license number 46632.
- CySEC – Cyprus Securities and Exchange Commission (Cyprus) under license number 183/12.
Hotforex has its headquarter in Kingstown, St. Vincent and the Grenadines but they also have a local office in Abuja, Nigeria.
But, Hotforex is not backed up by any banking firm nor is it listed publicly on any stock exchange. However, the investments made through Hoteforex can be considered safe as it is a well-regulated broker.
Compared to other brokers available in Nigeria, we found Hotforex to be one of the safest for the traders in Nigeria due to multiple top-tier regulations and the availability of local offices in Nigeria.
To enhance the profits out of trades, it is important to choose a broker with low fees but it should never be the only basis for the selection of brokers.
We found Hotforex to be quite impressive in terms of fees due to tight spreads and no hidden charges or commission. The deposits, as well as withdrawals, are free of cost but it does charge overnight and inactivity fees.
- Variable Spread – Hotforex charges variable spreads on each of the 6 account types offered. The basic account type with the least minimum deposit, called the micro account type, has decent spreads starting from an average typical spread of 0.2 pips for currency pairs. The zero account type has the least spread which starts from 0.0 pips but includes a commission.Below is the comparison of the spread for Gold CFD trading with the different account types at Hotforex.
We checked the spreads at Hotforex taking EUR/USD as a benchmark and found the average typical spread to be 1.2 pips per lot on the micro account. We also tried the zero account for EUR/USD currency pair where the average spread was 0.1 pips per lot. However, we were also charged with 3$ (0.6 pips) as commission and the total was 0.7 pips per lot with the zero account. Overall, their trading fees is lower compared to other forex brokers like FXTM.
- Hotforex also charges an overnight or swap fee which is different for each instrument. It is the fees charged for keeping the position open overnight.
- Non-Trading Fees – The non-trading fees are also quite impressive for Nigerian traders as no withdrawal or deposit fees are charged for any of the methods. Although if no trades are executed for 6 consecutive months, Hotforex will charge an inactivity fee of 5$ or ₦1800 per month depending on base account currency.
Overall, we found the trading as well as non-trading fees at Hotforex to be quite impressive as compared to other regulated forex and CFD brokers available in Nigeria.
Hotforex Trading Platforms
Hotforex uses the Metatrader trading software which is the most chosen and one of the best trading platforms in the world. Hotforex has 12 variants of the Metatrader 4 and Metatrader 5 trading platform which provides a convenient and user-friendly trading experience for every type of trader.
The MT4 and MT5 trading applications are compatible with various devices and offer an efficient trading experience through the web, android, IOS, & tablets. The mobile trading app is highly useful to track and monitor trades. The autochartist and other analysis tools can assist the traders in making better decisions regarding forex trades.
We encourage the variants of MT4 and MT5 trading platforms at Hotforex but the unavailability of the cTrader trading platform might be a con for some of the traders. The majority of forex and CFD brokers in Nigeria provide Metatrader trading platforms.
Hotforex Customer Support
A helpful, supportive, and resourceful customer support can play a vital role in enhancing the forex and CFD trading experience. Hotforex offers excellent customer support as their support service is one of the best among all the competitors in Nigeria.
- Live Chat: The live chat window at the official website of Hotforex is available 24/5 for registered clients as well as those who do not have trading accounts at Hotforex. We received a relevant solution to all the queries we raised through their live chat window at three different times in a day.
Each time the chat was connected within 15-20 seconds, and we received a helpful response. You may be asked your MyHF ID to chat if you are a registered customer.
- Email/Contact Form: Traders can also reach out to customer support staff at Hotforex through email or by filling out the contact form along with the query. They usually revert within 2-3 hours on a working day.
- Local Phone Number: Hotforex offers a local toll-free Nigerian phone number to assist the traders. Traders in Nigeria can connect with the customer support executives by calling on +234-7063705519 anytime during the working days.
We liked the customer support features at Hotforex. The unavailability of live chat and local phone support on holidays is the only con we found in this section. Although, the support service is comparatively far better than many of the forex and CFD brokers in Nigeria.
Hotforex Trading Account Types
Hotforex allows traders to choose from 6 different live account types. Each account types are suitable for different types of traders as they charge different spreads, have different minimum deposits, leverage, and several other features.
The minimum deposit at Hotforex is $5 or Naira 1800 with the Micro account.
Each account type can be opened with Naira as a base currency which is a major advantage for traders in Nigeria. They also offer negative balance protection on each account type. Whenever the account balance gets negative, it is automatically adjusted to zero.
Below is the description of each account type:
- Micro: It is the basic account type at Hotforex that has the lowest minimum deposit and highest leverage. This account does not charge any commission while the spreads are variable. The average typical spread for the EUR/USD with the micro account is 1.2 pips. Traders can trade up to 7 lots with this account. The minimum deposit for the micro account type is ₦1800 or 5$. All the trading instruments offered by Hotforex are available to trade with the micro account. It is ideal for beginners or those who wish to trade with micro-lots.
- Premium: This account type has a similar spread to the micro account with no commission but the minimum deposit is higher while the maximum leverage is lower. Traders can trade up to 60 lots with the maximum leverage of 1:500. This account type is ideal for traders who wish to trade with higher volumes. The minimum deposit is 100$ or ₦35,000.
- Zero Spread: This is an attractive account type as the spreads for currency pairs start from as low as 0 pips. The average spread for the EUR/USD was nearly 0.1 pips per lot. Although, it involves a commission of 3$ per trade but is still one of the cheapest methods to trade forex in Nigeria. The account is ideal for high-volume traders who trade daily.
- Auto: This account type is ideal for those traders who wish to trade automatically based upon the trading signals of the MQL5 community on the MT4 trading platform.
- PAMM: With the PAMM account type, traders can trade in forex and CFDs through calls made by a fund manager.
- HFcopy: This account type is exclusively available for copy trading. Any individual can become a follower or strategy provider (SP) through the HFcopy account at Hotforex.
Apart from all the above-mentioned live accounts, Hotforex also offers a demo account with virtual currency of up to $100,000. The demo account has all the features of the MT4 and MT5 trading platforms. It is ideal for newcomers to learn strategies and gain experience before making actual trades.
We liked the flexibility in the account types available at Hotforex as it can suit a wide variety of traders. The account opening process is quite simple as traders only need to fill out the application form with the basic details of the trader. After completing the KYC process and provide name and address proofs, traders can begin trading within 24 hours.
Hotforex Trading Instruments
A wide variety of trading instruments give more money-making options to the traders. Hotforex allows traders to choose from a basket of 15 major and 38 minor currency pairs. Apart from these, traders can trade through CFDs on commodities, indices, stocks, energies, metals, and cryptocurrencies. A total of 1044 CFDs are available at Hotforex.
Compared to other forex and CFD brokers in Nigeria, Hotforex offers a higher number of trading instruments than the majority of regulated peers.
Hotforex Deposits and Withdrawals
We found the deposits as well as withdrawals to be fast, free, and convenient for Nigerian traders. The deposits and withdrawals are free for a variety of payment options. Traders in Nigeria can transact through local banks transfer without any hidden cost. Apart from this, deposit/withdrawals can be done through wire transfer, credit cards, and various online payment options like Bitcoin, Neteller, Skrill, etc.
The minimum deposit, as well as withdrawal amount, is ₦1800. However, some methods require a higher minimum payment to be made. Traders are charged 1% of the amount for withdrawals through a bitcoin wallet. Apart from this, transactions through all the available methods are free of cost from the broker’s side.
On comparing the deposit and withdrawal methods and their feasibility with other regulated brokers in Nigeria, we found Hotforex to be among the best. The local Nigerian bank deposit is the most convenient method for Nigerian traders for withdrawals and deposits.
Hotforex offers various bonus offerings that keep on changing from time to time. They are offering a 100% SuperCharged bonus to all the traders in Nigeria with every deposit. But to avail this bonus, traders need to deposit $250 while funding your account or Naira 75,000.
The broker also rewards its high-volume traders with loyalty cashback which is earned based on trading volumes. Compared to other regulated brokers, we found Hotforex to be fairly attractive in terms of the Bonus offered to clients.
Do we Recommend Hotforex?
Yes. Hotforex is surely one of the best forex and CFD brokers available in Nigeria. They charge lower spreads, offer a wide variety of instruments, excellent customer support, and allows traders to choose the most suitable account type. Multiple top-tier regulatory licenses make it safe and trustworthy for traders in Nigeria.
The major advantage for traders in Nigeria is the presence of a local office in Abuja and the availability of a local phone number for customer support. Nigerian traders can deposit and withdraw through local banks without any additional charges.
Plus, they offer the Metatrader trading platform for both desktop & mobile.
Upon comparison with all the available regulated forex and CFD brokers that accept traders from Nigeria, we found Hotforex to be one of the best due to multiple factors.
Frequently asked questions: Hotforex Nigeria
Is Hotforex Nigeria legit?
Hotforex is licensed with multiple foreign top-tier regulatory authorities FCA, FSCA & CySEC, so they are considered a safe broker. They have an office & local phone number in Nigeria. So they are considered a legit forex broker.
What is the minimum deposit at Hotforex?
The minimum deposit at Hotforex is $5 or N1800 with their Micro Account, depending on your account currency. Other account types have higher minimum deposit.
What are the deposit methods at Hotforex?
Hotforex accepts online bank transfers & card deposits in Nigeria. You can also add funds via E-wallets, so there are a lot of options for funding your HF Trading account.