Hantec

Trust

Hantec Regulations

In our reviews, we examine the licenses and regulations of each entity operated by a broker, allowing us to compare their different levels of protection. We rank licenses by various regulatory bodies on a three-tier system, where Tier-1 licensing indicates the highest level of regulation.

This is what I discovered about the two entities operating under the Hantec Markets Holdings Limited trade name:

• Hantec Markets Limited is licensed and regulated by the Financial Conduct Authority (FCA) of the UK under license number 502635. We rate the FCA as a Tier-1 regulator.
• Hantec Markets Ltd is licensed and regulated by the Financial Services Commission (FSC) of Mauritius under license number C114013940. We rate the FSC as a Tier-3 regulator.

Understanding the Regulatory Protections of Your Account

Brokers operate multiple entities to serve clients worldwide. However, licenses obtained from regulators in different jurisdictions do not always entail the same degree of protection.

Some regulators mandate compliance with the strictest financial frameworks, while others are less rigid. That is why traders must familiarize themselves with the safety mechanisms ensured by the entity they want to open an account.

Here is what you need to be looking for in a broker in terms of safety mechanisms:

• Segregation of client funds. Keeping client funds in segregated bank accounts from the ones used for the broker’s corporate capital negates the risk of accounting errors. Both entities ensure the segregation of client funds.
• Negative balance protection. This safety mechanism removes the risk of trading losses exceeding the account balance. In other words, the losses you incur from trading are capped at the amount you have put in your trading account. Both entities guarantee negative balance protection.
• Compensation scheme. A compensation scheme protects traders against the broker’s liabilities if the company becomes insolvent. Clients of Hantec Markets Limited are insured by up to GBP 85,000 under the FSCS. Clients of Hantec Markets Ltd are insured by up to USD 500,000 under the broker’s Excess of Loss Policy.
• Maximum leverage. Capping the maximum leverage restricts the extent of market exposure to retail traders. The higher the leverage, the higher the potential profits and potential losses. The maximum retail leverage with Hantec is 1:500.

Stability and Transparency

In our Trust category assessments, we evaluate factors tied to stability and transparency, including the broker’s longevity, company size, and information transparency.

I reviewed Hantec’s legal documents and Client Agreement and found everything to be in order. The Client Agreement includes crucial information, such as a written confirmation that the broker keeps client funds in separate bank accounts from those used for its corporate capital.

Additionally, Hantec has issued a ‘best execution policy,’ which is a legal requirement ensuring brokers provide the most optimal prices to clients based on current market conditions.

Overall, the information on the website is extensive, easily accessible, and clearly written. My only minor concern is that the broker does not provide a live spreads feed on the website, which would help potential clients better assess the competitiveness of the broker’s fees.

Is Hantec Safe to Trade With?

I determined that Hantec can be considered a very safe broker to trade with due to the following factors:

• Provides all essential safety measures
• Has a ‘best execution policy’
• Has an Excess of Loss Policy
• Has transparent legal documents

Fees

Hantec Trading Fees

Hantec Spreads

I tested Hantec’s spreads on 11 September 2024 during the London and the New York open. The results are shown in the table below:

Broken down by asset class and compared to the industry average, I assessed that Hantec charges low spreads on currency pairs, share CFDs, indices, and cryptocurrencies, and low-to-average spreads on commodities.

Hantec Swaps

A swap fee is a trader’s cost for holding an open position overnight because of changing interest rates. Swap long refers to the charge deductible or credit receivable for holding a buy position open overnight. In turn, swap short relates to the charges/credits deductible or receivable for holding a selling position open overnight.

The values listed below are for one full base currency contract (100,000 units).

My tests indicate that Hantec’s swaps meet the industry average. This makes the broker an acceptable choice for longer-term trading.

Hantec Non-Trading Fees

Hantec imposes a 5 USD/GBP/EUR monthly fee on dormant accounts after 6 months of inactivity. The broker does not charge handling fees for deposits or withdrawals, although third-party processing fees may apply.

Accounts Comparison

I have compiled the table below to help you better understand the difference between the trading fees with Hantec’s Standard retail account type and the industry average. It illustrates the spreads and commissions I have recorded for the EUR/USD pair and compares them against the typical costs for ECN and STP accounts in the industry at large.

The table demonstrates how much you would have to pay to trade 1 full lot (100,000 units) in EUR/USD with a pip value of $10 for each account.

To calculate the cost of such a full-sized trade, I used this formula: Spread x pip value+commission

My findings indicate that Hantec’s fees are significantly better than the industry average. Additionally, the broker’s minimum deposit requirement is just $10, making it highly accessible.

Are Hantec’s Fees Competitive?

I ranked Hantec’s fees as among the lowest in the industry. The broker does not charge volume-based commissions and its spreads across all asset classes are quite low. Furthermore, it does not charge a handling fee for deposits or withdrawals.

Platforms and Tools

Institutional clients can use the FIX API protocol to boost their average order execution speeds and secure stable connectivity. Additional information is available here.

Hantec MT5 Desktop

The desktop version of the MetaTrader 5 platform features multiple essential tools, such as one-click trading, an alarm setting option, and a market depth tool. These allow traders to examine various market developments from different angles and to exploit the underlying trading opportunities in multiple ways.

MT5 is arguably best suited for automated trading via its Expert Advisors (EAs). The platform also has an intuitive strategy tester, allowing experienced algo traders to tweak the parameters of their strategies so that they can be used under different market conditions.

General Ease of Use

The MetaTrader platform is easy to navigate. Even beginner traders can quickly learn where the charts, account info, and watch lists are. However, its cumbersome charts make the platform somewhat difficult to use.

Charts

I consider the charts screen a platform’s most important feature. It facilitates technical analysis by providing an overview of price action behavior. Chart artists use many analytical tools and chart configuration possibilities to examine it from multiple angles. In my experience, the really important aspect of a chart is how easy it is to scale price action up and down.

As shown above, the problem with MetaTrader is that the charts can be crowded quite easily, even when you add no more than 2 indicators. This obscures price action behavior and makes it more difficult to conduct probing technical analysis.

I have broken down the available analytical tools and chart configurations below:

• 38 technical indicators: The platform supports trend-based, volume-based indicators, oscillators, and more. These can be applied to study price action behavior and determine the underlying market sentiment. In general, technical indicators are used to gauge where the market is likely to head next.
• 24 drawing tools: Drawing tools, such as Fibonacci retracement levels and Elliott waves, are used to study repeatable price patterns. Additionally, they can be applied to determine key support and resistance levels and potential breakout or breakdown levels. Despite the rather large collection of drawing tools, MT5’s ruggedness makes it difficult to discern price action behavior.
• 21 timeframes: One of MetaTrader 5’s standout features is its vast array of timeframes. MT5 allows multi-timeframe analysis of price action behavior. The more timeframes available, the more intricate examinations can be carried out across the short-term and long-term.
• 3 chart types: Price action can be represented as a line, bars, or candlesticks. This diversity allows traders to examine potential trading opportunities from different angles.

Orders

MetaTrader 5 features three types of order execution: market, pending, and one-click trading (top-left corner). One-click trading allows immediate entries at the spot price.

I have broken down the available order types on the MetaTrader 5 platform below:

• Market orders: Market orders are used for immediate entry at the best possible price. If triggered, they guarantee volume filling, though there could be a discrepancy between the requested price and the price at which the order is filled.
• Limit orders: Unlike market orders, limit orders guarantee exact price execution. However, a limit order will not be filled if the price action does not reach the pre-determined execution price.
• Stop orders: They are used to support open positions by limiting the maximum loss that can be incurred if the market turns in the opposite direction. A stop-loss order is placed at a fixed price below or above the spot price. If the market does indeed turn and triggers the stop-loss, it will transform into a market order and get filled at the best possible price.

MT5 Desktop: My Key Takeaways

MT5 is a good option for fast and simple order execution. However, its dated and rugged design falls short compared to newer, sleeker platforms. As a trader who prioritizes flexible chart scaling, I find MT5’s charting capability too rigid and less effective.

Hantec Execution Model

Hantec operates as a Straight-Through-Processing (STP) broker without a dealing desk. It routes client orders to its pool of liquidity providers, where the LP fills the orders with the most favorable prices at the time. The principle of a client order is determined through a price aggregation process.

I measured Hantec’s order execution speeds over several days and determined that the broker averages speeds of around 58 milliseconds, beating the industry average of 60 milliseconds narrowly.

Institutional clients can achieve ultra-fast execution speeds by utilizing the broker’s FIX API protocol.

Hantec MT5 App

The mobile app version of MetaTrader 5 affords quick and easy access to the market on the go. It is very useful for opening, terminating, and adjusting open positions.

The market is continually evolving, marked by periodic surges and declines in volatility. For this reason, staying on top of the latest market developments is crucial, a task made simpler through the mobile app version of MT5.

You can also use the app to place market, limit, and stop orders, as well as to adjust the exposure of your open trades.

MT5 App: My Key Takeaways

The advantage of the MetaTrader app is its practicality. It can be an indispensable tool for making trade adjustments, particularly during moments of heightened volatility. However, the app also feels cumbersome, and I found it unsuitable for price action examination.

Tradable Instruments

Compared to the industry average, Hantec offers an average number of cryptocurrencies and a high number of currency pairs, commodities, share CFDs, and indices.

What Are CFDs?

Contracts for difference (CFDs) are derivatives that speculate on the underlying asset’s price without physical ownership.

For example, a long position on gold would generate profit as the price rises or incur a loss as it falls, all without the need to purchase actual gold bars.

One of the biggest advantages of trading CFDs is that traders can get in and out of the market almost instantaneously, thereby catching even minute changes in the price of the derivative.

What Can You Trade With Hantec?

Hantec Instruments: My Key Takeaways

The broker’s instruments offering is deep and diverse. Metals like gold and silver are denominated in 25+ different currencies, allowing for some pretty interesting price correlations. This flexibility benefits commodity traders, who are also given access to some pretty rare financial derivatives, such as lead, cattle, and zinc.

Hantec should also be praised for developing unique synthetic pairs, merging the shares of different companies within the same industry. However, the broker does not offer any lower-risk securities, such as ETFs or bonds. There are also no futures contracts or vanilla options.

Customer Support

Customer Support Channels

Customer Support Test

When we test a broker’s customer support, we evaluate the agent’s knowledge of their own website, how long it takes them to respond to questions, and how detailed their answers are.

I conducted my test on September 13 at approximately 9:37 a.m. CET via live chat. I asked a series of questions, including inquiries about handling fees for deposits and withdrawals.

An agent connected to the chat within a few seconds and answered most of my questions satisfactorily. However, the agent did not address the most complex question regarding the broker’s commission for pairs trading.

Deposit and Withdrawal

Hantec Deposit Methods

Hantec Withdrawal Methods

Account Types and Terms

Hantec Account Opening Process

To open an account with Hantec, please follow these easy steps:

1. Click ‘Open Account’ at the top-right corner of the main page.
2. State your name and choose your country of residence.
3. Enter your email address and set a password.
4. Provide the rest of your personal information.
5. Provide your financial information.
6. Elaborate on your trading experience.
7. Agree to the broker’s terms and conditions.
8. Confirm your email address.
9. Upload proof of ID and proof of address to verify your account.

Hantec Trading Account Types

According to my findings, Hantec’s Standard account accommodates most types of trading strategies. It has a stop-out level of 40%, protecting beginner traders against complete account wipeouts. It also offers rock-bottom spreads, zero commissions, and a low minimum deposit requirement of only $10.

Demo Accounts

Hantec offers demo accounts that introduce traders to the broker’s services and allow them to tweak their strategies in a risk-free environment. The market is continually evolving and never static, so it is important to hone your skills in a safe environment. You can set up a demo account for yourself prior to or alongside your live CFD account.

Swap Free Account

The broker offers Islamic accounts for swap-free trading, as mandated under Shariah law. Traders seeking an Islamic account must contact Hantec’s customer support and request the service from there.

What is CFD Leverage?

Leverage determines a trader’s overall market exposure. When trading Contracts for Difference (CFDs), positions can be opened for a fraction of their value because of leverage. Essentially, the broker lends the trader money so that they can open bigger positions. Leverage multiplies the profits a trader generates from winning positions but also the losses incurred from failed trades.

Maximum Leverage By Asset Class

In the table below, I have listed the maximum retail leverage available with Hantec for instruments from different asset classes:

Hantec Restricted Countries

Hantec does not accept as clients residents of the US, Iran, Myanmar, and North Korea.

Research

Research Tools

I have broken down Hantec’s research content by type below:

• Economic Calendar: The economic calendar is an important tool that informs traders of upcoming economic releases, speeches, and other events that typically result in heightened market volatility and, therefore, viable trading opportunities.
• Webinars: Hantec schedules regular webinars, at least twice a week, where market experts analyze the latest market trends. The content is presented in a light format, offering a hands-off approach to market research.
• Trading Central: The package includes a tool for assessing the current market sentiment called Market Buzz, an AI-powered economic calendar, and technical analyses on various instruments. Hantec clients can use these to read about viable trading opportunities and how to exploit them (where to enter the market, where to place a protective stop-loss order, where the market is likely to head, etc.).

Hantec Research: My Key Takeaways

Hantec’s research content is comprehensive and varied, detailing both market behavior and the underlying reasons. I also appreciated that the broker includes content from TradingCentral, providing clients with a nuanced perspective on current market trends. This added insight helps clients make more informed trading decisions.

Education

I have broken down Hantec’s most important educational materials below:

• Platform Videos: The broker’s YouTube channel features 17 videos that explain how to use the MT4 and MT5 platforms. Traders can learn how to place various orders, implement technical indicators, and more.
• Educational Course: Its scope is impressive, catering to first-time traders, novices, intermediate, and advanced traders alike. The course begins with a detailed introduction to CFD trading and progresses through the intricacies of technical analysis – such as reading price action and applying various indicators – as well as macroeconomics, trading psychology, and risk management. Due to its comprehensive coverage and clarity, Hantec’s educational course is among the best I’ve encountered in the industry.
• Written Articles: These materials cover a diverse range of financial and trading topics, from ‘What are the differences between MT4 and MT5’ to ‘What is OPEC, and why should traders know about it’?

The Bottom Line

Established in 2009, Hantec is an excellent forex and derivatives broker that caters to a wide range of traders, from scalpers to commodity traders. The broker provides access to over 1,350 tradable instruments, including unique shares and index pairs.

Hantec stands out with its rock-bottom trading fees and practical educational resources. It also supports FIX API protocol and offers lightning-fast order execution.

The broker has developed two proprietary mobile apps—one for retail trading and another for copy and social trading. However, it only offers MT4 and MT5 for web and desktop trading.

Overall, I find Hantec well-suited for day traders, algorithmic traders, and commodity traders.