HFM (Hotforex) does not allow Risk-Free Trading & Low Ping Rate VPS

shanmugapradeep

Active Trader
Dec 18, 2020
112
5
34
38
Hello,

I’ve been using HotForex for quite some time, and so far, I haven’t encountered any issues with them. Perhaps it’s because I’m still in a loss. Their support has been good. However, while browsing through ForexPeaceArmy’s forum, I stumbled upon a complaint regarding HotForex.

HotForex suspended one person’s account for two reasons:
  1. Using a risk-free technique to make profits.
  2. Using a low ping rate VPN.
This has caused a lot of confusion in my mind.
  1. What does “risk-free technique” mean? In Forex, there is no strategy that is 100% risk-free, including arbitrage trading strategies and hedging strategies.
  2. A low latency VPS is always useful and necessary for traders for faster execution to ensure correct entry and exit prices.

1709551870433.png

Can anyone here help me understand what “risk-free” means to HFM here and why they do not allow the use of low ping rate VPNs?

Link to the Thread (ForexPeaceArmy) : https://www.forexpeacearmy.com/comm...-able-to-pay-hurry-up-to-wd-your-money.82304/
 

Enivid

Administrator
Staff member
Nov 30, 2008
18,699
1,381
144
Odesa
www.earnforex.com
What HFM refers here to is an old "arbitrage strategy" where you find two brokers that use identical data feeds (or preferably find the data feed provider itself) and you set up a trading robot that works on very low latency with the slowest broker, to buy and sell in front of a tick of the slowest broker when the data from the fastest feed has already arrived.

However, what's important here is that the topic starter in the complaint you are linking to didn't engage in anything like that. It also appears that HFM restored their balance in the end. Whether this was a genuine error on the broker's behalf or a blatant attempt to snatch legit profits from the trader is left to your own consideration.
 

shanmugapradeep

Active Trader
Dec 18, 2020
112
5
34
38
HFM refers here to is an old "arbitrage strategy" where you find two brokers that use identical data feeds (or preferably find the data feed provider itself) and you set up a trading robot that works on very low latency with the slowest broker, to buy and sell in front of a tick of the slowest broker when the data from the fastest feed has already arrived.
How this even Possible. When i get Trading account logins and password. i cannot login except Metatrader.

I mailed to HFM asking same question, it has been 2 days, no response. normally their support response are fast.
 

Enivid

Administrator
Staff member
Nov 30, 2008
18,699
1,381
144
Odesa
www.earnforex.com
How this even Possible. When i get Trading account logins and password. i cannot login except Metatrader.

I mailed to HFM asking same question, it has been 2 days, no response. normally their support response are fast.
Sorry, I don't have any experience with HFM. However, with most brokers I traded with, there were completely separate credentials - for the website account and for the MetaTrader platform account.
 

HFM

Master Trader
Jun 26, 2014
2,589
3
74
Hello,

I’ve been using HotForex for quite some time, and so far, I haven’t encountered any issues with them. Perhaps it’s because I’m still in a loss. Their support has been good. However, while browsing through ForexPeaceArmy’s forum, I stumbled upon a complaint regarding HotForex.

HotForex suspended one person’s account for two reasons:
  1. Using a risk-free technique to make profits.
  2. Using a low ping rate VPN.
This has caused a lot of confusion in my mind.
  1. What does “risk-free technique” mean? In Forex, there is no strategy that is 100% risk-free, including arbitrage trading strategies and hedging strategies.
  2. A low latency VPS is always useful and necessary for traders for faster execution to ensure correct entry and exit prices.

View attachment 27593

Can anyone here help me understand what “risk-free” means to HFM here and why they do not allow the use of low ping rate VPNs?

Link to the Thread (ForexPeaceArmy) : https://www.forexpeacearmy.com/comm...-able-to-pay-hurry-up-to-wd-your-money.82304/
Dear Trader,

Thank you for voicing your concerns.
Ensuring a fair and transparent trading environment is our top priority. To achieve this, we have established clear terms and conditions that explicitly prohibit certain trading practices, such as arbitrage, which are universally forbidden across the industry and enforced by all regulated brokers. These measures are essential to prevent market manipulation and maintain fairness for all traders.
While we encourage clients to explore diverse trading strategies within legal and ethical boundaries, it's imperative that we enforce rules to safeguard market integrity. Activities like arbitrage, which seek riskless profits, undermine the principles of fair trading and pose significant risks to market stability.
We maintain a strict stance against any prohibited activities and strictly adhere to termination policies for clients engaging in such behavior, as is customary across the industry.
Regarding Virtual Private Servers (VPS), we understand their significance in optimizing trading efficiency. We permit clients to use their preferred VPS and even offer complimentary VPS services to ensure stable connections and minimal latency. However, it's important to note that certain VPS providers may have ties to prohibited software providers, potentially disrupting market dynamics and compromising our platform's integrity.
Our dedication lies in promoting ethical trading practices and setting the standard for fair and transparent trading conditions. We are committed to providing all clients with the assurance that our platform upholds the highest standards of integrity and fairness.
We encourage you to review our terms and conditions, which outline our unwavering commitment to a level playing field for all traders. Should you have any further questions or concerns, please don't hesitate to contact us. Your feedback is invaluable as we continuously strive to enhance our services and ensure the best trading experience for our clients.
Thank you for entrusting HF Markets as your broker of choice.

Warm regards
 

shanmugapradeep

Active Trader
Dec 18, 2020
112
5
34
38
arbitrage
Can you explain what kind of Arbitrage your talking about?. RiskLess is not possible.

it's important to note that certain VPS providers may have ties to prohibited software providers, potentially disrupting market dynamics and compromising our platform's integrity.
How some person know which VPS provider is prohibited by HFM?. I use Amazon AWS VPS, according to HFM, it allowed or Prohibited?

@Enivid

Is this account is official HFM?, why it showing banned?

1709807013811.png
 

fargana

Active Trader
Nov 14, 2022
146
22
29
34
Hello,

I’ve been using HotForex for quite some time, and so far, I haven’t encountered any issues with them. Perhaps it’s because I’m still in a loss. Their support has been good. However, while browsing through ForexPeaceArmy’s forum, I stumbled upon a complaint regarding HotForex.

HotForex suspended one person’s account for two reasons:
  1. Using a risk-free technique to make profits.
  2. Using a low ping rate VPN.
This has caused a lot of confusion in my mind.
  1. What does “risk-free technique” mean? In Forex, there is no strategy that is 100% risk-free, including arbitrage trading strategies and hedging strategies.
  2. A low latency VPS is always useful and necessary for traders for faster execution to ensure correct entry and exit prices.

View attachment 27593

Can anyone here help me understand what “risk-free” means to HFM here and why they do not allow the use of low ping rate VPNs?

Link to the Thread (ForexPeaceArmy) : https://www.forexpeacearmy.com/comm...-able-to-pay-hurry-up-to-wd-your-money.82304/
Risk-free is obviously arbitrage, because I think there are no hedging means to cancel risk from a CFD trade. I also do not think that arbitrage is possible with them because their average execution is same as in other brokers 200-250 ms from the low ping location. It is too slow.
 

Oli_jackson

Trader
Mar 27, 2023
93
12
19
45
The only risk-free trading that can come to mind is possibly news trading, in which naturally all brokers put some rules to control misuse of such avenues of approach to trading, they are there to make money in the end, it's not out of the goodness of their hearts that they connect you to the market.
 

fargana

Active Trader
Nov 14, 2022
146
22
29
34
The only risk-free trading that can come to mind is possibly news trading, in which naturally all brokers put some rules to control misuse of such avenues of approach to trading, they are there to make money in the end, it's not out of the goodness of their hearts that they connect you to the market.
Risk free is arbitrage but most broker do not tolerate this style of trading since it's considered as abuse of brokers' trading conditions.
 

fargana

Active Trader
Nov 14, 2022
146
22
29
34
Can you explain this. How this strategy works?
Forex arbitrage involves exploiting price discrepancies of the same currency pair across different markets or exchanges to make a profit. You should identify opportunities where the bid price of a currency is lower in one market than the ask price in another. Then simultaneously buy the currency at the lower price and sell it at the higher price, capturing the price difference as profit. Arbitrage opportunities are typically short-lived and require fast execution and access to multiple markets.