Overview of HYCM fees and charges
It's safe to say that HYCM's fees are low in general. They either don't charge a brokerage fee for things other brokers do charge for, or they only charge a small amount. This means that you can use HYCM even in case you trade frequently like multiple times a week or daily.
Here's a high level overview of HYCM's fees
|Assets||Fee level||Fee terms|
|S&P 500 CFD||Low||Classic & Raw account: the fees are built into the spread; the spread cost is 0.5 points during peak trading hours. The Fixed account has wider spreads.|
|Europe 50 CFD||Low||Classic & Raw account: the fees are built into the spread; the spread cost is 2.3 points during peak trading hours. The Fixed account has wider spreads.|
|EURUSD||Low||Classic account: the fees are built into the spread, 1.4 pips is the average spread cost during peak trading hours.|
|Inactivity fee||Average||$10 each month after 90 days of inactivity|
Disclaimer: 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
HYCM fees explained
We compare HYCM fees with its closest competitors, AvaTrade and XM.
HYCM trading fees
HYCM's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).
Let's break down the trading fees into the different asset classes available at HYCM.
HYCM's trading fees are low.
It is super hard to compare trading fees for CFD brokers. What we did at BrokerChooser? Instead of quoting long fee tables, we compare brokers by calculating all fees of an example trade for three assets.
For the assets we chose cleverly and arbitrarily:
- Apple, a large US stock
- Vodafone, a large European stock
- EURUSD, a popular currency pair
The example in this context would mean buying a position, holding for one week, and selling it. For the volume we chose a $2,000 position for the stocks and $20,000 for the EURUSD.
This super catch-all benchmark includes spreads, commissions and financing costs for all brokers.
Here is the verdict.
|Apple benchmark fee||$4.2||$6.6||$6.7|
|Vodafone benchmark fee||-||$8.3||$2.3|
|EURUSD benchmark fee||$14.3||$16.4||$17.5|
HYCM financing rates are low.
If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.
|Apple CFD financing rate||3.0%||9.0%||6.0%|
|Vodafone CFD financing rate||-||8.2%||5.9%|
|EURUSD financing rate||3.0%||3.8%||3.7%|
|EURGBP financing rate||2.5%||3.1%||3.0%|
Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.
Currency conversion fee
HYCM will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The fee is charged as the following: Exchange rate received from liquidity providers plus a mark-up. We used the EURUSD trading fees for the calculation..
HYCM non-trading fees
When it comes to looking at all the non-trading fees HYCM is a cheap broker. This means that they don't charge you a lot for non-trading related activities on your trading account, like withdrawal fee.
Non-trading fees include various brokerage fees and charges at HYCM that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.
HYCM deposit fee
Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and HYCM is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods HYCM offers.
HYCM withdrawal fee
Unlike some online brokers we have reviewed HYCM does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.
|Withdrawal fee with bank transfer||$0||$0||$0|
HYCM inactivity fee
HYCM does apply an inactivity fee and it is $10 each month after 90 days of inactivity. This means that you need to be strategic about your trading activity to avoid getting charged after a longer time of no trade. The fact that HYCM charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.
HYCM has average inactivity fee.
|Inactivity fee||$10 each month after 90 days of inactivity||$50 per quarter after 3 months of inactivity; after 12 straight months of non-use, a further annual administration fee of $100 is charged||$15 one-off maintenance fee after one year of inactivity, followed by $5 per month fee if the account remains inactive|
Read more about HYCM inactivity fee on their own site.