HighLow Review

WHO IS HIGHLOW?      

According to research in South Africa, HighLow is an Australian company founded in 2010 with headquarters in Sydney.

HighLow is wholly owned by HighLow Markets Ltd and is one of only a few remaining binary options brokers.

The broker was formed by a group with a combined experience of over 30 years in the forex industry. They recognised the need for an options platform that focuses on ease-of-return and high returns.

HighLow offers trading through its inhouse HighLow platform and one trading account in stocks, commodities, indices, and forex.

SAFE OR SCAM

HighLow is regulated and authorised under the jurisdiction of the Australian Securities and Investments Commission (ASIC) and has earned a reputation among binary traders in the online trading community as being one of the few brokers that is trustworthy and transparent.

Client funds are held in a single client money trust account for each relevant currency. The trust account is with National Australia Bank (NAB)

These funds are separate from HighLow Markets’ own funds and cannot use those funds for hedging purposes.

PRO AND CONS

LEVERAGE

Leverage enables a trader to get a much larger exposure to the market the person is trading than the amount deposited to open the trade. Leveraged products, such as forex trading, magnify a trader’s potential profit – but also increase the potential loss.

Leverage is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1 000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the collateral to cover any credit risks that may arise during trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you need to have enough funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

At HighLow the leverage ratio is zero as trading is done through binary options.

ACCOUNTS   

HighLow offers only one live trading account with the following features:

• Minimum trade size: AUD$10
• Maximum trade size: Up to AUD$2 000
• Maximum position per option: Up to AUD$50 000
• Maximum exposure per account: Up to AUD$150 000

The broker also offers a free demo account which can be opened without the need to register with the broker. It has a balance of AUD$10 000 virtual money for an unlimited period of time.

A demo account can be used together with a live account so that traders are able to try new options and strategies without the risk of using your own cash.

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex:

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities:

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices:

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals:

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy:

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

HighLow offers the following of the above:

• Currencies
• Commodities
• Cryptos
• Market Indices

FEES

Cost and fees depend on different factors, like spread and margins, and HighLow clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

HighLow’ binary options are non-leveraged derivative options of which four option can be chosen from: High/Low, High/Low Spread, Turbo and Turbo Spread.

For the High Low and Turbo options there is no spread and trades are executed at the mid-price. While for the High Low Spread and Turbo Spread there is a bid spread.

The broker does not charge any transaction fees except for international bank transfers where an AUS$20 will apply.

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of HighLow, a minimum deposit of AUD$10 is required to open an account.

The following methods can be used to fund accounts and to execute withdrawals:

• Visa
• MasterCard
• Neteller
• Bank Wire Transfers
• POli

While the minimum deposit required to open an account is only AUD$10, you will have to deposit at least AUD$50 if you make a deposit via credit card, Neteller or POli. The broker does not charge any deposit or withdrawal fees.

Deposits will reflect immediately in your trading account. POli is the best choice to use for funding your account as it means real-time funding, instant receipts and zero transaction fees.

The only requirement is that you have an account with one of the many Australian banks who partner with POli.

Although withdrawals are processed immediately it might take between 1 to 3 business days to reflect into the trader’s account.

TRADING PLATFORMS

The forex trading platform provided by HighLow to its clients is the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

HighLow provides its own in-house platform provided by Markets Pulse which is well designed to suit the need of all traders in binary trading.

The platform is available in English and can be used on desktops, web, android, and iPhone. It allows users to trade the binary options market with 5 different types of option contracts.

The main difference between the normal option contracts and the spreads options contracts is the fact that the expiry for the latter is extended to cover a range of prices rather than a single price level.

As for turbo options and the High/Low options, the expiry time for the former are from 30 seconds to 5 minutes while the expiry time for the latter is on an intraday basis.

HOW TO OPEN AN ACCOUNT

To register an account with HighLow is a simple and quick process and does not require the client to go through the basic “know your customer process” as with opening a bank account.

The online registration form only requires your name, email address and password. It is not clear if anything else is needed.

Once the account is opened and the minimum deposit made in AUD you can start trading.

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

Customers support is provided in English and the team can be reached in real time by only through live chat or by leaving a message on the website.

The broker provides various general FAQs on the help site before you are requested to send a message if your do not find the correct answer to your question.

EDUCATION       

Before starting to trade, potential clients of HighLow should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

HighLow offers various educational material such as various video tutorials, a FAQ section and a glossary. It also has a platform walk-through to help you understand how it works before you start trading.

RESEARCH         

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

Unfortunately, with HighLow there is no research tools available.

AWARDS

Being an awarded company instils extra confidence by traders.  HighLow has received not awards as yet.

CONCLUSION  

HighLow is regulated and registered with ASIC which makes it a reputable and safe broker to trade with.

Its whole approach to forex trading is different from the normal approach but the website is self-explanatory and user-friendly with enough assistance and video tutorials to assist traders in trading with binary options.

It provides sufficient educational tools for the beginner trader but lack in research tools for the more advanced trader.

Customer support might be a problem as it seems like the broker prefer to communicate through live chat or sending a message than the direct approach via telephone.

DISCLAIMER

Clients should satisfy yourself that entry into a financial product offered by HighLow Markets Pty Ltd is permissible in your jurisdiction. The information on its website is of a general nature only.

To the extent any advice is provided, it is general advice only and does not consider your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice having regard your objectives, financial situation and needs.

Dealing in foreign exchange contracts and our other over-the-counter derivative products carries significant risk. You may lose all of your initial investment and you may also incur losses that exceed your initial investment.

HighLow do not provide or allow managed discretionary account services on its accounts. You must only trade on your own account and you are warned the broker has broad powers to enforce its Account Terms and Condition

Potential traders should first acquaint themselves with all these associated risks and seek advice from an independent financial advisor, according to research in South Africa.

You might also like: GBE Brokers Review

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with HighLow?

HighLow offers trading in currencies, commodities, cryptos, and market indices

Which platforms are supported by HighLow?

HighLow platform

Does HighLow offer leverage?

No HighLow lets the client determine the leverage depending on the trading asset

What spreads can I expect with HighLow?

For HighLow and Turbo options there is no spread and trades are executed at the mid-price. While for HighLow Spread and Turbo Spread there is a bid/ask spread

Does HighLow charge commission?

No, HighLow does not charge commission

Is HighLow regulated?

Yes, HighLow is regulated by the ASIC

Is HighLow a recommended forex trading broker for experts and beginners?

Yes, HighLow offers a trading environment for both beginner and advanced traders.

What is the overall rating out of 10 for HighLow?

7/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does HighLow offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used for an unlimited time

Which live trading accounts does HighLow offer?

One HighLow account

What are the available deposit currencies for a live trading account?

AUD

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for HighLow?

AUD$10

How do you make a deposit and withdrawal with HighLow?

HighLow offers the following deposit methods:

• Visa
• MasterCard
• Neteller
• Bank Wire Transfers
• POli

Does HighLow charge withdrawal fees?

No, but fees from financial institution may apply

How long does it take to make a withdrawal?

Withdrawals are processed immediately but it might take between 1 to 3 business days to reflect into the trader’s account. Traders should note however that depending on a specific bank service it may take several days for the money to be available in a client account.