Things to consider
There are many aspects to assessing a broker’s services in general, maybe even too many to list. Below, we’ll focus on the most important criteria that should be taken into account when determining whether a broker is good for beginners.
A beginner-friendly broker should have:
- an excellent web and mobile trading platform
- low fees
- great educational tools
- good customer service
- an easy account opening process
- low minimum deposit
Legitimacy is also very important, but since we recommend only legit brokers regulated by top-tier financial authorities, this is one thing you don’t have to worry about.
More and more people are looking to become a player on financial markets either as traders or investors. However, when researching the basics, it can be easy to feel overwhelmed by the sheer amount of information available online.
This is where BrokerChooser offers a helping hand. The reason is simple: choosing the right service, especially when you are taking your first steps in trading, is highly important.
In this article we’ll check whether HYCM is the right choice for a starting trader.
Disclaimer: 73% 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.
Is HYCM good for beginners
HYCM is a CFD broker
Just a quick heads up: HYCM focuses mainly on CFDs. Usually we don’t recommend CFD products for beginners. For beginners looking to trade mostly stocks, we suggest choosing a stockbroker where you can buy the actual shares of a company instead of a CFD contract for the stock.
Some CFD brokers offer you the opportunity to place orders on the price movements of some popular stocks; some might even offer company shares as a so-called stock CFD (contract for difference). While this might be convenient for some short-term traders, there are many drawbacks to it: for starters, you’ll need to pay the broker a so-called financing charge as long as you hold the CFD. This could add up to a significant amount if you hold the CFD for more than a few weeks.
If you’d like to stick with CFDs, you might want to take a look at our article on CFD trading tips.
Is HYCM good for beginners
Is HYCM good for beginners?
Based on our scoring methodology, HYCM is not considered good for beginners. If you'd like to see alternatives, check out our picks for the best brokers for beginners.
Let's take a look at its services one by one, following the criteria we set above, to get the whole picture.
- 💻 HYCM's web platform has some good things to offer: Clear fee report. Good customizability (for charts, workspace). Order confirmation. However, some things may not be suitable for beginners. Areas of improvement: No two-step (safer) login. No price alerts. Poor design.
- 📱 The mobile platform of HYCM is reasonably well-designed: User-friendly. Good search function. Price alerts. This may be helpful for the first steps in your trading journey.
- 🕖 An account opening process is great when it is seamless from the get-go. HYCM does an excellent job in this area: Fast. Fully digital. Low minimum deposit.
- 📚 HYCM's education materials are a great place to start: Demo account. Trading platform tutorial. Educational videos. This makes HYCM's material worthy reading.
- 📞 When you need help, one thing you should have immediate access to is customer service. HYCM's customer service generally scored well on these points: Phone support. Live chat. Fast response time.
- 💰 Low minimum deposits and low-cost transactions are attractive for new traders. HYCM's deposit and withdrawal processes have some good things to offer: Credit/Debit card available. Free withdrawal. No deposit fee.
Is HYCM good for beginners
Overview of HYCM's services
Let’s take an overall look at how HYCM compares to its peers when it comes to platforms, fees, account opening and education tools. Our scores are on a scale of 1.0 to 5.0, from worst to best.
| HYCM | AvaTrade | XM | |
|---|---|---|---|
| Web platform score | 2.8 stars | 3.8 stars | 2.8 stars |
| Mobile platform score | 4.3 stars | 4.7 stars | 3.8 stars |
| Fees | Low | Low | Low |
| Account opening score | 5.0 stars | 5.0 stars | 5.0 stars |
| Education score | 5.0 stars | 5.0 stars | 4.5 stars |
| Customer service score | 4.3 stars | 5.0 stars | 5.0 stars |
| Deposit and withdrawal score | 4.5 stars | 4.5 stars | 5.0 stars |
If you wish to read more about HYCM, click 'Visit Broker' to go to the broker's website. We also have a detailed review of the broker that you can read by clicking on the 'More' button.
Is HYCM good for beginners
Is HYCM legit?
We hear more and more stories each day about clients who lost their money to scammers from Telegram or through unregulated services. BrokerChooser only features brokers that have top-tier financial regulators. As such, HYCM is a legit and trusted broker.
If you’d like to know more, check out our deeper dive into HYCM's legitimacy.
Is HYCM good for beginners
Where can I find more information?
If HYCM is not the right broker for you, go ahead and check out our picks for Best Brokers for Beginners in 2023 for some alternatives.
Also, if you feel that some things weren’t clear when it comes to the brokerage world, no worries. We have lots of content to cover your questions. You can find our articles in the Education section of our site.
For example, if you want to know how to buy shares online and how the whole process works, there’s an article about that. If you’d like to learn more about investing in stocks or what short selling is, we have articles about these topics too.
We have also written a few materials that focus on recent events in the news, like what a short squeeze is.
We hope you found all of the information above useful. If you have any questions, we’d love to hear from you, just write to us at [email protected]. See you there!
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