HFM (formerly HotForex): What are the features, advantages, disadvantages, and no margin calls for the zero-cut system for overseas FX accounts? We explain the latest information on the trigger conditions. The zero-cut system is a system that is almost always implemented by FX companies with global operations. This means that traders are not at risk of incurring debt, which is a huge benefit. What exactly is a zero-cut system?
- HFM Basic Information
- What is HFM’s Zero Cut System?
- Zero-Cut Application Process
- Trading Strategies Using Zero-Cut
- Recommended Brokers with Zero-Cut Systems
- HFM’s Zero Cut and Comparison with Other Brokers
- Frequently Asked Questions About the Zero Cut System
- Q1. What is zero cut?
- Q2. Is zero cut applied automatically?
- Q3. When is zero cut applied?
- Q4. Is it okay to deposit with a negative balance?
- Q5. Does a bonus affect the zero-cut?
- Q6. Can I trade immediately after a zero-cut?
- Q7. Can I use the zero cut feature multiple times?
- Q8. Are there any cases in which the zero cut feature does not apply?
- Q9. Does the zero cut feature apply to all account types?
- Related
HFM Basic Information
| Company Name | HF Markets（SV） Ltd. |
| Year of establishment | 2010 |
| Service Overview | A large brokerage providing services in over 180 countries worldwide with millions of registered accounts |
| Financial products handled | Foreign Exchange (FX), Stock Indices/Commodities, Stock CFDs/Cryptocurrencies |
| Trading Platform | MetaTrader 4（MT4）、MetaTrader 5（MT5） |
| Maximum Leverage | 2,000x |
| User Support | Multilingual support |
| Financial License | ✔ FCA (UK, Financial Conduct Authority) ✔ FSCA (South Africa) ✔ DFSA (Dubai) ✔ FSA (Seychelles) |
| Deposit and Withdrawal Methods | Bank transfer Credit/Debit card (VISA/Master/JCB, etc.) bitwallet / BXONE / Binance Pay / Cryptocurrency |
| Account Type | Cent Account Premium Account Pro Account Zero Account Top-up Bonus Account |
What is HFM’s Zero Cut System?
We’ll explain HFM’s (HF Markets) Zero Cut System in detail so that even beginners can understand. The system automatically zeros out positions even if they are in the negative when cash reaches zero, so you can rest assured. Please check the home page before using the official website. This makes investment management easier and increases your chances of success.
🔰 What is the Zero Cut System?
The Zero Cut Protection system (Zero Cut Protection) is a system in which HFM compensates for any negative account balances caused by sudden market fluctuations.
In other words,
💡 You will not incur losses greater than your deposited funds.
This is an important safety feature unique to overseas FX. Use this feature to reduce your lot size to hold and maintain your positions. Hedging and scalping are also permitted, so please refer to our guide when making your selection.
📉 Understanding with a concrete example
Example: Without a zero-stop
Account balance: ¥100,000
A sudden market change results in a loss of ¥150,000
➡ A ¥50,000 debt (margin call) is incurred
Example: With an HFM zero-stop
Account balance: ¥100,000
A sudden market change results in a loss of ¥150,000
➡ Your account balance resets to ¥0 (no debt)
👉 No additional payments are required.
🛡 Features of HFM Zero-stop
✅ No margin call
No margin call (additional margin) requirements like those imposed by Japanese FX brokers
✅ Automatic application
No special application required
When a negative balance occurs, HFM automatically adjusts it.
✅ Applies even during sudden fluctuations
Indicator announcements
Flash crashes
Opening of the market window at the start of the week
This rule also applies in situations where a standard stop-loss rule cannot be applied in time, such as during an index announcement
Flash crashes
Opening of the market window at the start of the week
⚠ Important Note
Zero-stop is not a panacea. Please understand the following:
❌ The balance is not always reset immediately.
It may temporarily display a negative balance.
It may be adjusted within a few hours or business days.
❌ Abuse is prohibited.
Excessive gambling trading with the assumption of zero cut.
Fraudulent activity using multiple accounts.
👉 Violation of terms may result in invalidation or account freezing.
❌ Withdrawals are not permitted.
The negative balance is simply “cancelled.”
It does not result in profits.
Zero-Cut Application Process
Below is a chronological explanation of the zero-cut (negative balance protection) application process at HFM (HF Markets),
so you can understand “when, what happens, and how it’s handled.” We’ll provide detailed explanations of the levels and safety. While there are pros and cons, it’s useful to understand the settlement status. Customers should carefully read the terms and conditions and understand the unique system.
🔄 Overall Zero-Cut Application Flow
In conclusion
👉 Zero-cut is applied “after the fact, not immediately.”
🕒 Step-by-Step: Zero-Cut Application Process
① Sudden Market Changes/Delayed Stop Loss
This is likely to occur in the following situations:
When indicators are announced (e.g., employment statistics)
Opening of the market window at the start of the week
Rapid fluctuations in gold and cryptocurrencies
Hours of extremely low liquidity
📉
Stop loss-cutting is not implemented in time, and your account balance temporarily goes negative.
② Your account balance will be displayed as negative.
You may see “-XX yen” or “-XX USD” on the trading screen or app.
At this point,
the zero cut has not yet been processed.
👉 There is no need to rush to deposit funds at this point.
③ HFM’s system detects a negative balance.
HFM’s risk management system automatically detects the occurrence of a negative balance.
An internal check is conducted to ensure there is no fraud or violation of terms.
④ Zero cut adjustment (negative balance reset).
If there are no problems,
the negative amount will be compensated and your account balance will be adjusted to “0.”
No margin calls or payment obligations will be required.
⏱ Estimated time until adjustment.
Several hours to several business days.
(This may be delayed in the event of sudden market fluctuations.)
⑤ Trading resumes (re-deposit required).
Balance will be 0 yen (or 0 USD).
To continue trading,
a new deposit is required.
Trading Strategies Using Zero-Cut
Trading strategies based on “zero-cut” allow for greater risk-taking than usual, taking advantage of the fact that maximum losses are limited to the deposit amount. However, misuse can result in a sudden loss, so strategic planning is important. Carefully determine your standard strategy. Even in the industry, forced losses can be avoided, so it’s easy to consider this in advance.
1️⃣ High Leverage × Stop-Loss Strategy (Short-Term)
Overview
Leverage: 100-500x
Trading Time: Minutes to Hours
“Hits are big, misses are zero” in a single trade
Example
Capital: ¥50,000
Risk 20-30% of your account per trade
Always set a stop-loss (zero-cut is your final insurance)
Suitable for
Scalping/Day Trading
Confident in technical analysis
⚠️ Caution
Zero-cut does not necessarily mean stop-loss is unnecessary
→ Immediate exit after a losing streak
2️⃣ Targeting Economic Indicators and VIP Statements (Event Trading)
Overview
Employment statistics, CPI, FOMC, etc.
Opening a position immediately before the announcement
Example Strategy
Enter with a small amount of capital before the indicator
Expect spread widening and slippage
No margin call even at the worst-case scenario of zero
Advantages
You can take advantage of situations that would normally be too scary to enter
Disadvantages
Prone to rejections and slippage
Selecting the right broker is extremely important
3️⃣ Hedging + Targeting Sudden Changes (For Advanced Traders)
Overview
Hold both long and short positions simultaneously before the announcement
Aim for one side to skyrocket
Key Points
A broker with a narrow spread is essential
Prepare for a zero cut on one side
⚠️ Many brokers
Hedging restrictions
Possibility of zero cut invalid
→ Check terms and conditions
4️⃣ Small-Amount Boost Strategy (More Gambling-Oriented)
Overview
Accept ¥10,000-¥30,000 as “capital you can afford to lose”
Aim for a few big wins
When to Use
When your account balance is low
When you can accept it mentally
⚠️ Not suitable for long-term investment
→ Only for “creating an opportunity to increase capital”
Recommended Brokers with Zero-Cut Systems
Below are recommended overseas FX brokers that use the zero-cut system (no margin calls/Negative Balance Protection). We’ve compared them based on their features, reliability, and trading environment. Note that the zero-cut system ensures that overseas FX brokers are protected from losses greater than the amount deposited (however, there may be exceptions or conditions in the terms and conditions, so it’s important to check before using).
⭐ 1. XMTrading (XM)
Features: The most popular overseas FX broker among Japanese people. Zero-cut is applied automatically, allowing for safe trading without the need for application.
Maximum Leverage: Up to 1,000x
Advantages:
Highly rated as a reliable zero-cut broker.
Extensive Japanese support
Bonus campaigns (deposit bonuses, etc.)
Popular due to reviews citing a large number of account holders.
Note: Be sure to check the terms and conditions for using bonuses and trading costs beforehand.
⭐ 2. FXGT
Features: High maximum leverage and zero-cut support. Separate management and some brokers also offer liability insurance.
Maximum Leverage: Up to 5,000x
Advantages:
Suitable for high-leverage trading
May offer a variety of financial products
Segregated asset storage and insurance are considered standard, emphasizing reliability.
Note: As a relatively new broker, keep in mind that their track record is shorter than that of established brokers.
⭐ 3. BigBoss
Features: One of the brokers with zero-cut support and relatively high leverage. Bonuses available.
Maximum Leverage: Up to 2,222x (varies by account type)
Advantages:
Easy to use, even for beginners
Zero-cut is clearly applicable
Note: There may be restrictions on short-term trading methods and automated trading, so check carefully.
⭐ 4. iFOREX
Features: Zero-cut system supported. Relatively simple trading environment, bonuses available.
Maximum Leverage: Up to 400x
Advantages:
Zero-cut support and no margin calls.
Designed for beginners
Note: Leverage is slightly lower than other brokers.
⭐ 5. AXIORY
Features: Zero-cut support and relatively narrow spreads. Suitable for beginners to intermediate traders.
Maximum Leverage: Varies depending on the situation (potentially up to 2,000x).
Advantages:
Narrow spreads make it suitable for short-term trading.
Trust protection available (enhanced capital protection).
Note: Fees and terms vary depending on account type, so comparison is required.
HFM’s Zero Cut and Comparison with Other Brokers
The following is a comparison of HFM’s (HF Markets) zero cut system with other major international FX brokers. While the “zero cut” system, which allows you to avoid margin call risk in international FX, is common to all brokers, the timing and features of application vary, so it’s important to compare and understand them. 👇 Recently, high leverage has become a popular option, allowing you to take advantage of major trends right away.
| ブローカー | ゼロカット適用 | 発動タイミング・特徴 | 補足 |
|---|---|---|---|
| HFM | あり | 自動リセット（数時間〜24時間以内が多い | マイナス残高が検出されると自動補填 ※手動対応もあり（稀） |
| XM Trading | あり | 自動（即時〜最大3営業日） | 自動リセットだが最大数日かかる可能性 |
| Exness | あり | 即時自動リセット | マイナス発生とほぼ同時に反映されやすい |
| AXIORY | あり | 24時間以内の自動執行 | リセットタイミングが比較的明確 |
| Titan FX | あり | 自動執行（比較的高速） | 1時間以内程度のケースあり |
| BigBoss / FXGT 等 | あり | 自動リセット（それぞれ若干違い） | タイミングは業者により異なる |
📌 Differences in Zero Cuts by Company (By Point)
We’ve selected some of the most well-known brokers in Japan. Of course, always check the source of information before making your selection. Take advantage of stable trading opportunities in Japan and avoid any disadvantages. You really can’t survive with debt every month. Below are some key factors to consider when choosing a trading broker.
✅ ① Speed of Execution
Exness: Tends to be immediately reset upon loss (instant execution)
HFM: Automatic reset, usually within 24 hours, but often processed within a few hours (automatic and manual processing available)
XM: Delays may occur, and processing may take up to a few business days.
👉 Overall, Exness offers greater speed, while HFM, AXIORY, and Titan FX tend to process within a few hours to 24 hours.
✅ ② Terms of Use and Restrictions
HFM, XM, AXIORY: Zero-cut is applied automatically, but bonuses may affect your balance (the processing order for bonus edits may vary).
Exness: No bonuses and instant processing are characteristic, and it is sometimes considered the simplest zero-cut behavior.
Titan FX: It is also known for its relatively high execution power and speed, which may reduce stress during zero-cut processing (actual speed may vary depending on the situation).
✅ ③ Impact on Trading Style
Quick zero-cut processing, like Exness, has the advantage of making it less likely to miss the next trading opportunity.
HFM offers an environment where re-entry after zero-cut is easy, making it easy to use in combination with bonus campaigns.
XM has reported cases where its activation timing is somewhat delayed, so it is generally recommended to refrain from additional trades while in a negative balance.
Frequently Asked Questions About the Zero Cut System
The following are some of the most frequently asked questions (FAQs) about HFM (HF Markets)’s zero cut system, summarized in an easy-to-understand format, based on actual usage scenarios. While you probably have some investment objectives, we recommend setting a tolerance and making bets. If you are forced to fall below your target and are unable to control it, we recommend acting with minimal capital as a precaution. If you are just starting out, avoid diversifying your trades.
Q1. What is zero cut?
A.
Even if your account balance goes negative due to a sudden market fluctuation,
👉 HFM will compensate for the negative balance and return it to zero.
No margin calls (additional payments)
You will not incur losses greater than your deposit.
Q2. Is zero cut applied automatically?
A. Yes, it is automatic.
In principle, no application or procedure is required; the HFM system will automatically adjust your negative balance after detecting it.
- If it takes time for the change to be reflected, please contact support.
Q3. When is zero cut applied?
A. It is not applied immediately, but rather “post-application.”
Typically, it will occur within a few hours to a few business days.
It may be delayed during sudden market fluctuations or at the beginning of a week.
👉 Even if a negative balance is displayed, it does not immediately indicate an abnormality.
Q4. Is it okay to deposit with a negative balance?
A. We do not recommend it.
The deposited amount may be used to cover the negative balance.
As a result, it may appear that the deposit has “disappeared.”
👉 It is safer to deposit after the zero-cut process is complete.
Q5. Does a bonus affect the zero-cut?
A. Yes, it does.
Bonuses are used as margin.
When a zero-cut occurs, the bonus typically expires first.
If your balance is still negative after that, the zero-cut will be applied.
👉 Just because you have a bonus does not mean you won’t go negative.
Q6. Can I trade immediately after a zero-cut?
A. Your balance will be set to zero, so you will not be able to trade.
A new deposit is required.
The account itself will remain open.
Q7. Can I use the zero cut feature multiple times?
A. In principle, there is no limit on the number of times.
However, if an obvious attempt to zero cut is detected,
a violation of the terms of service or fraudulent trading is confirmed,
👉 your account may be restricted or disabled.
Q8. Are there any cases in which the zero cut feature does not apply?
A. The following cases may be exempt:
A violation of the terms of service (arbitrage trading, fraudulent EAs, etc.)
Abnormal trading patterns
If system abuse is determined.
👉 Normal discretionary trading and EA use will rarely cause any issues.
Q9. Does the zero cut feature apply to all account types?
A. Yes, it applies to all HFM account types.
Cent Account
Standard Account
Premium Account
Pro Account
※ The same conditions apply
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