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|
|US stock fee||-||Not available|
|EURUSD fee||Low||Classic Account: the fees are built into the spread; the average spread cost during peak trading hours is 1.4 pips. The Fixed account has a wider spread but no commission is charged while the Raw account has smaller spreads and commission is charged.|
|US tech fund fee||-||Not available|
|Inactivity fee||Average||$10 each month after 90 days of inactivity|
Disclaimer: 67% 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
Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.
This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:
- Trading fees - these are brokerage fees that you pay when you actually do a trade, i.e. buying an Apple stock or an ETF. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
- A commission is either based on the traded volume or it is fixed.
- A spread is the difference between the buy price and the sell price
- Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
- Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.
We compare HYCM fees with its closest competitors, ATFX and ETX Capital.
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||$4.0||$6.8||$5.3|
|Vodafone benchmark fee||-||-||$3.1|
|EURUSD benchmark fee||$7.1||$7.3||$13.9|
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%||2.0%||5.8%|
|Vodafone CFD financing rate||-||-||6.1%|
|EURUSD financing rate||1.3%||1.4%||3.3%|
|EURGBP financing rate||1.5%||1.2%||2.6%|
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..
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HYCM non-trading fees
When it comes to looking at all the non-trading fees HYCM is an average broker. This means that some of the non-trading fees are high, but the others are low or not charged at all.
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 the majority of the 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||No inactivity fee||No inactivity fee|
Read more about HYCM inactivity fee on their own site.