HFM (formerly HotForex): Features and benefits of the zero cut system Conditions for activation in FX


The zero cut system is a system that is almost always installed in Forex companies that are expanding worldwide. This means that traders are not at risk of going into debt, which is a huge boon. What exactly is the zero cut system?

What is a zero cut system?

The zero cut system is a service that offsets the negative balance and returns the account balance to 0 when the loss cut is executed. This is when the market moves significantly when important economic indicators, bank interest rate policy announcements, and even major political decisions are announced. At that time, the loss amount will be more than the principal amount, but if the balance becomes negative, the system is such that the Forex company will bear the burden instead of the trader. Therefore, Forex traders will not chase losses beyond the amount deposited in the account.

HF Markets

HF markets use this zero cut system. It is also written on the official website, and you can see that it is officially adopted. This is specified on the following pages. Therefore, it can be said that it is a very friendly Forex company for traders. The target of zero cut is not only FX but also all currency pairs including CFD and virtual currency. All negative balances will be reset, so you can trade with confidence. With negative balance protection, there is no risk of incurring debt even during market volatility when margin calls and stop-outs do not work properly.

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All accounts support zero cut

There are various account types in HF markets, but the zero cut system and rules are adopted for all real account types. If you have a demo account type, it will be a virtual trade. The server is stable, and you can start copy trading directly as soon as you understand the test content when applying. You can follow established traders in the market. Many people trade foreign exchange such as USD, EUR, JPY, GBP, and AUD.

high leverage trade

Traders can trade with high leverage as there is no risk of incurring debt. Since there are many companies with high maximum leverage, companies that use zero cut allow you to trade with greater risk. It offers a wide range of financial products and has loose leverage restrictions, so you have a lot of freedom. The management support is also highly rated. You can start trading immediately after activating your account.

both sides

In HF markets, the zero cut system may not be applied depending on the method of trading. For example, if you try to do both with the aim of getting a zero cut, it will be seen as malicious and may be a violation of the rules. Furthermore, the same thing can happen if you intentionally trade at the indicator time. Avoid trading by abusing charts, rates, and market time periods. Buy and sell settlement speeds are typically faster than in the industry, and operations are excellent and comfortable. Small transactions are also possible.

Terms and conditions

Trading conditions and spreads range from wide to narrow. Compared to overseas FX brokers such as xm, easymarkets, fxgt, axiory, iforex, exness, etc., HFM offers premium accounts, points, cashback, bonuses, and campaigns, and the procedures are easy. Funds are managed in a wallet, and there is a wide variety of products such as currency pairs, commodities, precious metals, energy, and virtual currencies that are recommended.

maximum leverage is high

The maximum leverage is 2000x in the foreign exchange market. Furthermore, there are stop-loss cuts and leverage limits, so even if something happens, it is regulated. Zero cut system also occurs without margin call. Swap points will also be generated if the date is crossed. If you are unsure, try trading with a cent account or micro account first. We also offer a free VPS service for automatic trading. We have also obtained a financial license, making us a reliable FX broker.

trading platform

The platform uses MT4 and MT5, and scalping and automated trading tools (EA) can also be operated. Profit calculation tools for lots, position holding, pips, etc. are available on the official website and can be used for free. It is safe even for those who do not have sufficient investment experience. There are no withdrawal restrictions, no slippage, and no contract rejections. If you have any questions or contact basic support, they will give you a solid answer. Major currencies such as the dollar and euro can also be traded.

Zero cut system flow

In HF markets that have adopted the zero cut system, when this system is actually activated, the balance in the trading account such as MT4, MT5 will remain negative. Therefore, looking at this alone, it seems that nothing has been adopted, but the balance will be corrected to 0 within 24 hours. After the zero cut system is adopted, traders can do nothing but make additional deposits and start trading again.

Countries that cannot adopt the zero cut system

As mentioned above, the zero cut system is a system that clearly has only benefits for traders. However, depending on the country, there are countries where the zero cut system cannot be adopted due to legal restrictions, so please be careful about the location of the Forex company you use. Japan is very famous as a country where this system cannot be adopted. The Financial Instruments and Exchange Law established by the Japanese Financial Services Agency prohibits compensation for losses by zero cut, so zero cut cannot be adopted. It is very dangerous to trade with a Japanese Forex company, so be careful. Please refer to the following articles as well.

Advantages of zero cut system

The benefits of the zero cut system are as follows.

No debt risk

The advantage of the zero cut system is that there is no debt risk. If your trading account balance becomes negative due to some mistake, HFM will compensate and reduce it to 0. Therefore, traders will never be in debt no matter how they trade.

high leverage trading

Along with the above, there is no debt risk, so high leverage trades are possible for traders. High lever trading has the chance to make a lot of money, but please be careful as there is also a risk of making a big loss.

Disadvantages of zero cut system

The disadvantages of the zero cut system include:

Trades that exploit the zero cut system

There are users who trade by abusing the zero cut system. The existence of this user is also a nuisance for brokers. Please note that users who engage in malicious trading may have their accounts frozen as a violation of the terms of use.

Difference between zero cut and loss cut

There is a word called “loss cut” which is similar to “zero cut”. Zero cut is a system that compensates for losses exceeding the margin, and stop-loss cut is a compulsory liquidation procedure to prevent further losses. Therefore, the meanings are different in the first place, and the situations in which they are applied are also completely different, so please be careful.

Situations where the zero cut system is applied

So in what situations will zero cut be applied?

Important economic indicators, political events

When Russia invades Ukraine, or when US policy interest rates and unemployment rates are announced, the market will move horribly. Due to extremely volatile price fluctuations, account balances often become negative before the system can catch up. In these cases zero cut is adopted.

System error

If an error occurs due to some problem or glitch in the FX broker’s system and payment cannot be made, the account balance may become negative. In these cases zero cut is adopted.

server down

If the FX broker’s system server stops operating due to some problem or malfunction, and payments cannot be made, the account balance may become negative. In these cases zero cut is adopted.


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