HMS Markets Review

WHO IS HMS MARKETS?      

According to research in South Africa, HMS Markets is an English company founded in 1972 with headquarters in Luxembourg.

HMS Markets is the commercial name for HMS Luxembourg S.A. and is an inter-dealer brokerage firms serving banks, hedge funds, active traders, and investors globally.

With the setup of HMS Online Trading Luxembourg in 2001, the broker started to provide online forex trading.

The broker offers trading through its inhouse HMS Trader platform in Forex, futures, CFDs and stocks.

SAFE OR SCAM

HMS Markets is regulated and registered through by the Commission de Surveillance du Secteur Financier Luxembourg (CSSF).

The broker is authorized to act as investment advisor, and a broker for financial instruments, asset management, and proprietary trading.

In addition, HMS Markets is a member of the Deposit Guarantee and Investor Association. Collaborating banks provide it with high liquidity of trading assets and warrant the instant execution of orders.

Client accounts are held with a European Bank and separated from the broker’s accounts.

Clients from the United States is not accepted.

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.

There is no indication what the maximum leverage ratio is for HMS Markets.

ACCOUNTS   

HMS Markets offers one live account type that can be opened as an Individual, Joint or Corporate account.
Not much information is available on the broker’s website in regard to account types or what the features are. It is not even clear whether it offers demo or swap-free accounts.

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.

HMS Markets offers the following of the above:

• Forex
• Futures
• CFDs
• Stocks

FEES

Cost and fees depend on different factors, like spread and margins, and HMS Markets 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.

It is not clear what the fees are with HMS Markets. It seems like it offers fixed spreads, and this is outlined on the website for each tradable asset. You have to open a live account to have access to this information.

Cash withdrawals out of the HMS Trader online Trading account will be subject to a charge of €25.

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 HMS Markets a minimum deposit of €1 000 is required to open an individual, joint, or corporate account.

There is no clear indication what payment methods can be used although it seems like Bank Wire Transfers are accepted through the EUR currency. No other information on deposits or withdrawals are forthcoming from the website.

TRADING PLATFORMS

The forex trading platform provided by HMS Markets 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.

HMS Markets offer their two own in-house trading platforms, namely the HMS TraderPro and the HMS TraderGo. Both are only available in English.

The platform is said to be easy-to-use, fully customizable and integrates all trading, analysis, price monitoring and research functions into one interface.

It ensure quick opening and closing of the positions and is fitted with instruments for technical analysis.

HMS TraderPro is compatible on desktop only where traders on the go should use the HMS TraderGo platform which is designed for use on iOS devices, Android and the web.

It seems like HMS Markets are continuously improving the platforms and In the latest version there are several new features that will assist you in trading quickly and efficiently.

HOW TO OPEN AN ACCOUNT

It is not clear how to go about to open an account although there is a link on HMS Markets website. Clicking on the link reverts back to the homepage.

CUSTOMER SUPPORT

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

Customers can reach the support team through telephone, email, or by completing an online request form.  Services are offered in English and French.

The customer desk is open on Luxembourg business weekdays from 08:00 CET until 18:00 CET from Mondays to Friday.

EDUCATION       

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

HMS Markets does not offer any form of educational tools except for a FAQ section which is not even sufficient in the information provided.

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.

As with the lack of educational tools, HMS Markets does not offer any research tools. It does, however, appear that most of the research tools are built into the platforms.

AWARDS

Being an awarded company instils extra confidence by traders.  HMS Markets has received no awards since its inception.

CONCLUSION  

The lack of information on HMS Markets website will deter any beginner trader to even consider the broker.

It does not even display the most basic trading conditions expected from a broker trading in forex. No educational or research tools are provided to assist the beginner or advanced trading in their forex trading.

The only positive for this broker is that it is authorized by Commission de Surveillance du Secteur Financier Luxembourg (CSSF) which is the regulating body in Luxembourg.

DISCLAIMER

HMS Markets is the commercial name for HMS Luxembourg S.A. The value of your investments can go down as well as up. Losses can exceed deposits on margin products.

While the broker promises to make all efforts to fill a trade at the requested price, trading on-line does not necessarily reduce risks associated with currency trading, therefore quotes and trades are usually subject to the terms and conditions of a Client Agreement, which is accessible through the broker’s website.

Complex products, including CFDs and forex, come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

65% – 75% of retail investor accounts lose money when trading CFDs with this provider.

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.

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FAQs

TRADING ENVIRONMENT

How many instruments can I trade with HMS Markets?

HMS Markets offer trading in forex, futures, CFDs and stocks

Which platforms are supported by HMS Markets?

HMS TraderPro and HMS TraderGo

Does HMS Markets offer leverage?

It is not clear what leverage HMS Markets offer

What spreads can I expect with HMS Markets?

It seems like HMS Markets offers fixed spreads

Does HMS Markets charge commission?

There is no indication on the website whether HMS Markets charge commission

Is HMS Markets regulated?

Yes, HMS Markets is regulated by the CSSF

Is HMS Markets a recommended forex trading broker for experts and beginners?

No, HMS Markets offers a trading environment more focussed on the advanced trader

What is the overall rating out of 10 for HMS Markets?

4/10

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 HMS Markets offer a demo account?

No

How long is the demo account valid?

Not applicable

Which live trading accounts does HMS Markets offer?

HMS Trading offers one live account for individual, joint or corporate clients

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

EUR

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for HMS Markets?

€1 000

How do you make a deposit and withdrawal with HMS Markets?

HMS Markets offers only Bank Wire Transfer as the only deposit or withdrawal method

Does HMS Markets charge withdrawal fees?

Cash withdrawals out of the HMS Trader online Trading account will be subject to a charge of €25.

How long does it take to make a withdrawal?

HMS Markets does not indicate how long withdrawals can take.