Scalpers usually really like the 0 pips spread type because it can reduce trading costs. Well, one of the brokers that presents a 0 spread account is the HFX broker. However, before trying to trade at this broker, it’s a good idea to get to know at a glance the info about HFX and the Zero Spread specifications it offers.
Overview of the HFX Broker
HFX Internasional Berjangka (HFX) is a forex and CFD broker founded in 2006 in Indonesia. This local broker presents three choices of assets for trading, namely forex (major and minor pairs), indices (stocks, CFD), and commodities (Gold, Oil CFD).
In its operations, the HFX broker has obtained a permit from Bappebti (No. 877/BAPPEBTI/SI/1/2006). Initially, the license was on behalf of the Fortis Asia Futures broker. However, this company later underwent a rebranding to become PT HFX International Berjangka.
The HFX broker has a minimum deposit requirement of $100 (equivalent to Rp. 1.5 million), floating spreads starting from 0 pips, minimum trading of 0.1 lots, and leverage up to 1:200. Meanwhile, the trading platform used is MetaTrader 4.
Due to these trading conditions, the HFX broker is suitable for all types of traders, including beginners who usually do not have a high capital commitment and avoid large trading fees. Plus, HFX allows any trading strategy including hedging and scalping.
Facts about 0 Pip Spread Trading Conditions at HFX Brokers
Talking about the 0 pip spread conditions offered, the real range in each trading asset will vary depending on market conditions. HFX is able to keep minimum spreads under 1 pip, so traders can get spreads in the zero-point range. The following details are explained on the official HFX website.
Spread 0 Pips at HFX Broker, Myth or Fact?
With the data above, it can be concluded that 0 spread accounts at HFX Brokers generally only apply to Major pairs. Meanwhile, for minor pairs like GBP/JPY and the like, the average spread is more than 1 pip.
Also Available for Commodity Trading
HFX Broker also provides Zero Spread for commodity contracts. So for those of you who want to try trading instruments other than currency pairs, you can try gold commodities with spreads that are no less competitive. The specifications that apply to gold contracts are as follows:
Mini accounts are subject to a 0.24 pips spread.
Premium accounts are subject to a 0.19 pips spread.
Myths of Trading Conditions at HFX Brokers
Apart from the facts above, there are still many misconceptions that have formed among traders because of the Zero Spread label. In order to avoid misleading misunderstandings, you should avoid the following Zero Spread myths:
Constant Spread 0 (Fixed Spread)
It should be noted, 0 pip spread accounts at HFX brokers or other brokers are almost always floating. This means that under certain conditions (for example when market liquidity suddenly drops drastically), the spread value can widen above the general value previously mentioned. So, it is impossible for the spread value to remain constant in the range of 0 pips continuously.
0 Spread Account For ECN Only
Due to regulations at Bappebti, local brokers are not allowed to offer ECN accounts to customers in Indonesia. However, that doesn’t mean that a 0 pips spread account with a local broker is impossible. With innovation from HFX, 0 pip spread accounts can be accessed by Indonesian traders.
Account Spread 0 Pip There Must Be Additional Fees
Spread 0 accounts on the ECN broker type usually incur additional fees in the form of commissions (a percentage of the number of lots traded). This does not apply to 0 pip spread accounts at HFX brokers. Basically, HFX already sets a commission per lot for each client’s transaction. This commission fee will always be charged and does not change the amount regardless of the spread.