Written by ForexBrokers.com
In this head to head comparison of Interactive Brokers vs HFM, we will compare the trading platforms, mobile apps, range of investments, costs, market research, and more. Let's dive in.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers, founded in 1977, stands out as a highly trusted choice among online brokers, holding a remarkable Trust Score of 99 according to ForexBrokers.com. Its credibility is further reinforced by its 9 Tier-1 licenses, signaling a high level of trust, and 2 Tier-2 licenses. As a publicly traded company, Interactive Brokers is not a bank, yet it remains a top choice for investors seeking a well-regulated broker with a long-standing presence in the industry.
On the other hand, HFM, which has been around since 2010, provides a trustworthy option for traders with a solid Trust Score of 86. Although it doesn't match Interactive Brokers in Tier-1 licensing, holding 2 such licenses, it compensates with 3 Tier-2 licenses, making it a reliable choice. While not publicly traded, HFM maintains its reputation without operating as a bank, offering a trusted platform for those who value a well-regulated broker.
| Feature |
Interactive Brokers
|
HFM
|
|---|---|---|
| Year Founded | 1977 | 2010 |
| Publicly Traded (Listed) | Yes | No |
| Bank | No | No |
| Tier-1 Licenses | 9 | 2 |
| Tier-2 Licenses | 2 | 3 |
| Tier-3 Licenses | 0 | 0 |
| Tier-4 Licenses | 0 | 2 |
Interactive Brokers and HFM are two popular online brokers that cater to forex traders, but they differ significantly in their approach to commissions and fees. Interactive Brokers is known for its competitive pricing structure, where the commission starts at 0.2 basis points of the U.S. dollar trade value with a minimum of $2 per order, dropping to as low as 0.08 basis points for extremely active traders. For example, trading $100,000 worth of EUR/USD would add up to roughly 0.40 pips in commission on top of any existing spreads. Interactive Brokers charges a commission based on trade size rather than marking up spreads, offering a rate ranging from $16 to $40 per million round turn. With a ForexBrokers.com ranking of #2 and a five-star rating for commissions and fees, Interactive Brokers is a strong choice for those seeking low-cost trading options.
On the other hand, HFM provides spreads as a main component of its fee structure, offering spreads of 1.2 pips for standard trading accounts and an effective spread of 0.7 pips on its Zero account after commissions. However, these spreads may fluctuate as no average data range is provided. Unlike Interactive Brokers, which uses agency execution, HFM’s fees are bundled into the spread which might not always be the most transparent option for traders. Consequently, HFM receives a four-star rating and is ranked #31 for commissions and fees by ForexBrokers.com. Though still competitive, it tends to be slightly above the industry average in terms of trading costs.
Overall, Interactive Brokers stands out for its commission-based pricing and discounts catered to high-volume traders, while HFM opts for a more straightforward but potentially costly spread-based fee structure. The choice between them will largely depend on one’s trading volume and whether they prefer transparent commission trading or conventional spread-based costs.
| Feature |
Interactive Brokers
|
HFM
|
|---|---|---|
| Minimum Deposit | $0 | $0 |
| Average Spread EUR/USD - Standard | 0.59 | 1.2 |
| All-in Cost EUR/USD - Active | 0.59 | 0.7 |
| Active Trader or VIP Discounts | Yes | No |
| ACH or SEPA Transfers | Yes | No |
| PayPal (Deposit/Withdraw) | No | No |
| Skrill (Deposit/Withdraw) | No | Yes |
| Visa/Mastercard (Credit/Debit) | No | Yes |
| Bank Wire (Deposit/Withdraw) | Yes | Yes |
Dive deeper: Best Low Spread Forex Brokers.
When comparing Interactive Brokers to HFM, Interactive Brokers stands out with an extensive offering of 8,500 tradeable symbols, giving investors access to a broader selection of assets. While both brokers provide forex trading with similar options for CFDs or spot contracts, Interactive Brokers offers 90 tradeable forex pairs, slightly fewer than the 102 available through HFM. However, Interactive Brokers provides direct access to U.S. and international exchange-traded securities, allowing clients to buy well-known stocks like Apple and Vodafone, a feature not available with HFM. Additionally, Interactive Brokers supports the purchase of actual cryptocurrencies alongside derivatives, whereas HFM only offers cryptocurrency derivatives.
HFM, on the other hand, accommodates those interested in copy trading, which Interactive Brokers does not offer. Despite these differences, the expansive range of investment opportunities places Interactive Brokers at the top of ForexBrokers.com's rankings for range of investments, securing a 5-star rating. In contrast, HFM holds a 4-star rating and is ranked 36th out of 63 brokers reviewed. This makes Interactive Brokers particularly appealing to those seeking diverse investment options across multiple asset classes.
| Feature |
Interactive Brokers
|
HFM
|
|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes |
| Tradeable Symbols (Total) | 8500 | 500 |
| Forex Pairs (Total) | 90 | 102 |
| U.S. Stock Trading (Non CFD) | Yes | No |
| Int'l Stock Trading (Non CFD) | Yes | No |
| Social Trading / Copy Trading | No | Yes |
| Cryptocurrency (Physical) | Yes | No |
| Cryptocurrency (Derivative) | Yes | Yes |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
Dive deeper: Best Copy Trading Platforms.
Interactive Brokers and HFM both offer a range of advanced trading platforms and tools, but there are significant differences in their features. Both brokers provide free virtual demo accounts, allowing new traders to practice. They also develop their own platforms and offer Windows-based desktop platforms and web-based trading options. Despite these similarities, Interactive Brokers does not support copy trading or MetaTrader 4 and 5, which HFM offers, giving HFM an edge for traders interested in these features. However, Interactive Brokers shines with 85 drawing tools, a much wider array than HFM's 30, and offers 659 columns for watch lists compared to HFM's 7. Interactive Brokers also allows direct trading from stock charts, a feature mirrored by HFM.
In terms of overall platform and tool ratings, Interactive Brokers excels with a perfect 5-star rating, ranking as the third-best out of 63 brokers on ForexBrokers.com, which underscores its strong reputation in the industry. In contrast, HFM earns a respectable 4-star rating, placing them 42nd on the same list. This suggests that while HFM offers some features that may appeal to certain traders, Interactive Brokers is widely recognized for providing an advanced and comprehensive trading experience. Aspiring traders looking for extensive charting tools and customizable watch lists might find Interactive Brokers more appealing, while those seeking MetaTrader capabilities or copy trading might prefer HFM.
| Feature |
Interactive Brokers
|
HFM
|
|---|---|---|
| Virtual Trading (Demo) | Yes | Yes |
| Proprietary Platform | Yes | Yes |
| Desktop Platform (Windows) | Yes | Yes |
| Web Platform | Yes | Yes |
| Social Trading / Copy Trading | No | Yes |
| MetaTrader 4 (MT4) | No | Yes |
| MetaTrader 5 (MT5) | No | Yes |
| DupliTrade | No | No |
| ZuluTrade | No | No |
| Charting - Indicators / Studies (Total) | 155 | 15 |
| Charting - Drawing Tools (Total) | 85 | 30 |
| Charting - Trade From Chart | Yes | Yes |
| Watchlists - Total Fields | 659 | 7 |
Dive deeper: Best MetaTrader 4 Brokers, Best MetaTrader 5 Brokers.
When comparing the mobile trading apps of Interactive Brokers and HFM, both platforms offer iPhone and Android apps, complete with the ability to receive real-time stock or forex price alerts. Interactive Brokers stands out for its watchlist symbol syncing feature, allowing seamless updates between the mobile app and the user's online account. In contrast, HFM lacks this syncing capability. For those who enjoy technical analysis, Interactive Brokers provides a wealth of options with 97 technical studies available in its app, compared to just 30 offered by HFM. Additionally, both platforms allow users to draw trendlines and view different time frames on charts, but HFM’s app has the upper hand with auto-saving chart drawings.
In terms of real-time data, both Interactive Brokers and HFM allow users to create watchlists with real-time quotes. However, when it comes to user ratings, Interactive Brokers shines with a perfect 5-star rating for its mobile trading app, compared to HFM’s 4-star rating. According to ForexBrokers.com, Interactive Brokers also boasts an impressive ranking, coming in at #4 out of 63 brokers for mobile trading apps, whereas HFM trails behind at #39. These distinctions make Interactive Brokers a favored choice for those seeking a comprehensive and highly rated mobile trading experience.
| Feature |
Interactive Brokers
|
HFM
|
|---|---|---|
| Android App | Yes | Yes |
| Apple iOS App | Yes | Yes |
| Mobile Alerts - Basic Fields | Yes | Yes |
| Watchlist Syncing | Yes | No |
| Mobile Charting - Indicators / Studies | 97 | 30 |
| Mobile Charting - Draw Trendlines | Yes | Yes |
| Mobile Charting - Multiple Time Frames | Yes | Yes |
| Mobile Charting - Drawings Autosave | No | Yes |
| Mobile Watchlist | Yes | Yes |
Dive deeper: Best Forex Trading Apps.
Interactive Brokers and HFM both provide traders with daily market commentary and comprehensive forex news from top-tier sources such as Bloomberg and Reuters. However, when diving deeper into specific research tools, notable differences emerge. For instance, Interactive Brokers grants access to research tools from Trading Central, offering technical analytics that HFM does not. In contrast, HFM utilizes resources from Autochartist for technical analysis and fundamental research, which is not available with Interactive Brokers. Sentiment-based trading tools are a common feature for both brokers, providing traders insights into market positions. Additionally, while both platforms offer economic calendars, Interactive Brokers extends its research repertoire with tools from TipRanks and Acuity Trading, unavailable with HFM.
When rated for research capabilities, Interactive Brokers earns a stellar 5-star rating, reflecting its comprehensive market research services. HFM, meanwhile, holds a respectable 4-star rating, highlighting its competitive yet slightly less extensive offerings. On a broader scale, ForexBrokers.com ranks Interactive Brokers at a commendable third place out of 63 brokers, significantly ahead of HFM, which stands at the twentieth position. These rankings underscore the substantial research advantages that Interactive Brokers offers to its users.
| Feature |
Interactive Brokers
|
HFM
|
|---|---|---|
| Daily Market Commentary | Yes | Yes |
| Forex News (Top-Tier Sources) | Yes | Yes |
| Autochartist | No | Yes |
| Trading Central (Recognia) | Yes | No |
| Social Sentiment - Currency Pairs | Yes | Yes |
| TipRanks | Yes | No |
| Signal Centre (Acuity Trading) | Yes | No |
| Economic Calendar | Yes | Yes |
Dive deeper: Best Brokers for Forex Research.
For those new to the world of trading and eager to learn more, Interactive Brokers and HFM each offer comprehensive educational resources designed to help beginners. Both platforms provide a wealth of materials, including over ten educational pieces on forex or CFDs, ranging from articles and videos to archived webinars. They also host monthly webinars to keep traders updated and informed, with recordings available in a searchable archive for convenient access. Beginners can benefit from at least ten educational videos specifically tailored for novice traders, alongside a dictionary of over 50 investing terms to help explain essential concepts.
Advanced learners are not left behind; both Interactive Brokers and HFM provide at least ten videos dedicated to more experienced traders. However, when it comes to educational quality, Interactive Brokers leads slightly with a five-star rating, compared to HFM's four stars. This distinction is also noted in their rankings, with Interactive Brokers ranked third among 63 brokers by ForexBrokers.com for education, while HFM holds the 37th position. This makes Interactive Brokers a stronger contender for those prioritizing top-tier educational support in their trading journey.
| Feature |
Interactive Brokers
|
HFM
|
|---|---|---|
| Education (Forex or CFDs) | Yes | Yes |
| Client Webinars | Yes | Yes |
| Client Webinars (Archived) | Yes | Yes |
| Videos - Beginner Trading Videos | Yes | Yes |
| Videos - Advanced Trading Videos | Yes | Yes |
| Investor Dictionary (Glossary) | Yes | Yes |
Dive deeper: Best Forex Brokers for Beginners.
After testing 63 of the best forex brokers, our research and account testing finds that Interactive Brokers is better than HFM. Interactive Brokers finished with an overall rank of #2, while HFM finished with an overall rank of #30.
Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets. It delivers competitive fees and high-quality research and education, as well as a modern, institutional-grade trading platform suite.
| Feature |
Interactive Brokers
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HFM
|
|---|---|---|
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| Trust Score | 99 | 86 |
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Interactive Brokers allows investors to buy actual delivered cryptocurrencies and offers cryptocurrency derivatives, while HFM provides access only to cryptocurrency derivatives without the option to purchase actual cryptocurrencies.
Interactive Brokers provides ACH or SEPA transfers and bank wires for depositing or withdrawing funds, but does not support PayPal, Skrill, or card payments, whereas HFM facilitates Skrill, Visa or Mastercard, and bank wires, but lacks ACH or SEPA transfer and PayPal options.
Please note:
We review each broker’s overall global offering – a “Yes” checkmark in our Compare Tool does not guarantee the availability of any specific features in your country of residence. To verify the availability of any features within your country of residence, please contact the broker directly.
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0 of 5| Overall Rating | Interactive Brokers | HFM | |
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| Trust Score | 99 | 86 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | HFM Review |
| Broker Screenshots | Interactive Brokers | HFM | |
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| Regulation | Interactive Brokers | HFM | |
|---|---|---|---|
| Trust Score | 99 | 86 | |
| Year Founded | 1977 | 2010 | |
| Publicly Traded (Listed) | Yes | No | |
| Bank | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes | |
| Tier-1 Licenses | 9 | 2 | |
| Tier-2 Licenses | 2 | 3 | |
| Tier-3 Licenses | 0 | 0 | |
| Tier-4 Licenses | 0 | 2 |
| Tier-1 Licenses (Highly Trusted) | Interactive Brokers | HFM | |
|---|---|---|---|
| Australia (ASIC Authorised) | Yes | No | |
| Canada (CIRO Authorised) | Yes | No | |
| Hong Kong (SFC Authorised) | Yes | No | |
| Japan (SFC Authorised) | Yes | No | |
| Singapore (MAS Authorised) | Yes | No | |
| Switzerland (FINMA Authorised) | Yes | No | |
| United Kingdom (U.K.) (FCA Authorised) | Yes | Yes | |
| USA (CFTC Authorized) | Yes | No | |
| New Zealand (FMA Authorised) | No | No | |
| Regulated in one or more EU or EEA countries (MiFID). | Yes | Yes |
| Tier-2 Licenses (Trusted) | Interactive Brokers | HFM | |
|---|---|---|---|
| Kenya (CMA Authorised) | No | Yes | |
| Israel (ISA Authorised) | No | No | |
| South Africa (FSCA Authorised) | No | Yes | |
| UAE (DFSA/Central Bank Authorised) | Yes | Yes | |
| India (SEBI Authorised) | Yes | No | |
| Jordan (JSC Authorised) | No | No |
| Investments | Interactive Brokers | HFM | |
|---|---|---|---|
| Forex Trading (Spot or CFDs) | Yes | Yes | |
| Tradeable Symbols (Total) | 8500 | 500 | |
| Forex Pairs (Total) | 90 | 102 | |
| U.S. Stock Trading (Non CFD) | Yes | No | |
| Int'l Stock Trading (Non CFD) | Yes | No | |
| Social Trading / Copy Trading | No | Yes | |
| Cryptocurrency (Physical) | Yes | No | |
| Cryptocurrency (Derivative) | Yes | Yes | |
| Disclaimers | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). | Note: Crypto CFDs are not available to retail traders from any broker's U.K. entity, nor to U.K. residents (except to Professional clients). |
| Cost | Interactive Brokers | HFM | |
|---|---|---|---|
| Average Spread EUR/USD - Standard | 0.59 | 1.2 | |
| All-in Cost EUR/USD - Active | 0.59 | 0.7 | |
| Active Trader or VIP Discounts | Yes | No | |
| Inactivity Fee | No | Yes | |
| Execution: Agency Broker | Yes | No | |
| Execution: Market Maker | No | Yes |
| Funding | Interactive Brokers | HFM | |
|---|---|---|---|
| Minimum Deposit | $0 | $0 | |
| PayPal (Deposit/Withdraw) | No | No | |
| Skrill (Deposit/Withdraw) | No | Yes | |
| Visa/Mastercard (Credit/Debit) | No | Yes | |
| Bank Wire (Deposit/Withdraw) | Yes | Yes | |
| ACH or SEPA Transfers | Yes | No |
| Trading Platforms | Interactive Brokers | HFM | |
|---|---|---|---|
| Proprietary Platform | Yes | Yes | |
| Desktop Platform (Windows) | Yes | Yes | |
| Web Platform | Yes | Yes | |
| Social Trading / Copy Trading | No | Yes | |
| MetaTrader 4 (MT4) | No | Yes | |
| MetaTrader 5 (MT5) | No | Yes | |
| cTrader | No | No | |
| DupliTrade | No | No | |
| ZuluTrade | No | No |
| Trading Tools | Interactive Brokers | HFM | |
|---|---|---|---|
| Virtual Trading (Demo) | Yes | Yes | |
| Alerts - Basic Fields | Yes | Yes | |
| Watchlists - Total Fields | 659 | 7 | |
| Charting - Indicators / Studies (Total) | 155 | 15 | |
| Charting - Drawing Tools (Total) | 85 | 30 | |
| Charting - Trade From Chart | Yes | Yes | |
| Charts can be saved | Yes | Yes |
| Mobile Trading | Interactive Brokers | HFM | |
|---|---|---|---|
| Android App | Yes | Yes | |
| Apple iOS App | Yes | Yes | |
| Mobile Alerts - Basic Fields | Yes | Yes | |
| Mobile Watchlist | Yes | Yes | |
| Watchlist Syncing | Yes | No | |
| Mobile Charting - Indicators / Studies | 97 | 30 | |
| Mobile Charting - Draw Trendlines | Yes | Yes | |
| Mobile Charting - Multiple Time Frames | Yes | Yes | |
| Mobile Charting - Drawings Autosave | No | Yes | |
| Mobile Economic Calendar | Yes | Yes |
| Research | Interactive Brokers | HFM | |
|---|---|---|---|
| Daily Market Commentary | Yes | Yes | |
| Forex News (Top-Tier Sources) | Yes | Yes | |
| Autochartist | No | Yes | |
| Trading Central (Recognia) | Yes | No | |
| TipRanks | Yes | No | |
| Social Sentiment - Currency Pairs | Yes | Yes | |
| Economic Calendar | Yes | Yes |
| Education | Interactive Brokers | HFM | |
|---|---|---|---|
| Education (Forex or CFDs) | Yes | Yes | |
| Client Webinars | Yes | Yes | |
| Client Webinars (Archived) | Yes | Yes | |
| Videos - Beginner Trading Videos | Yes | Yes | |
| Videos - Advanced Trading Videos | Yes | Yes | |
| Investor Dictionary (Glossary) | Yes | Yes |
| Major Forex Pairs | Interactive Brokers | HFM | |
|---|---|---|---|
| GBP/USD | Yes | Yes | |
| USD/JPY | Yes | Yes | |
| EUR/USD | Yes | Yes | |
| USD/CHF | Yes | Yes | |
| USD/CAD | Yes | Yes | |
| NZD/USD | Yes | Yes | |
| AUD/USD | Yes | Yes | |
| Review | Interactive Brokers Review | HFM Review |
| Overall | Interactive Brokers | HFM | |
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| Trust Score | 99 | 86 | |
| Winner | check_circle | ||
| Review | Interactive Brokers Review | HFM Review |
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