Here at HotForex we understand that successful traders have to give their full attention to their trading rather than worrying about the safety of their funds. We have therefore taken extraordinary measures in order to ensure a very high level of fund safety.
We strongly believe that our efforts will have a direct, positive impact on our clients and their account profitability since higher focus translates to higher profitability in the world of financial trading.
The HotForex brand has become the Global Leader in Online Trading, specializing in Forex, CFDs on US and UK stocks, commodities, spot metals and indices.
Client funds security has been a part of our philosophy alongside unmatched trading conditions and customer support. With global recognition for excellence, solid reputation and multi-award winning services, our clients are assured that their funds are held with security, clarity and integrity.
HF Markets (Europe) Ltd. took the decision to only use global banks of Investment Grade standing. The strength and global standing of the HotForex brand enables the Company to provide banking through Barclays UK and BNP Paribas.
Regulated firms are obliged to meet strict financial standards, including capital adequacy requirements. HotForex is required to submit financial reports to the regulator on a quarterly basis; therefore we are required by law to maintain sufficient liquid capital to cover all client deposits, potential fluctuations in the company's currency positions and outstanding expenses. A detailed annual audit performed by an independent internal auditor informs the regulator of any deficiencies.
Please note that (i) the capital adequacy and large exposures reports based on audited statements and (ii) the audited financial statements of the Company are to be submitted on an annual basis.
Client funds are received in the company's fiduciary segregated client bank accounts. These funds are off balance sheet and cannot be used to pay back creditors in the unlikely event of default of the Company. Therefore Company Funds are segregated from Client Funds.
The Company continually identifies, assesses, monitors and controls each type of risk associated with its operations. This means assessing on a continuous basis the effectiveness of the policies, arrangements and procedures in place which allow the company to easily be able to cover its financial needs and capital requirement at any time.
The Company is a member of the Investor Compensation Fund (the 'Fund'). The Fund was established under the Investment Firms (IF) Law 2002 as amended (the 'Law') and the Establishment and Operation of an Investor Compensation Fund for customers of CIFs Regulations of 2004 (the 'Regulations') which were issued under the Law. The Fund constitutes a private legal entity and its administration is exercised by an Administrative Committee of five members, who are designated for a three-year term. The Fund has been operating since 30th May 2004.
The Fund shall compensate the Company's covered customers as to the covered investment services and ancillary service offered by the Company as these are listed on its authorization and can be found in the website of the Cyprus Securities and Exchange Commission at http://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/37662/
Extremely volatile market conditions are always a possible scenario when trading. In line with HotForex’s negative balance protection policy, in the event that a negative balance occurs in your trading account due to stop out, we will make a relevant adjustment to cover the full negative amount. This way, our clients don’t have to worry about possible debts.