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 offer distinct pricing structures for their forex trading services. Interactive Brokers stands out with a remarkably competitive pricing approach, earning a 5-star rating for commissions and fees. The company does not publish its average forex spreads, but data from Q3 2024 show average spreads for the EUR/USD at 0.19 pips, amounting to an effective all-in spread of 0.59 pips after applying commission. Interactive Brokers implements a unique commission structure starting at 0.00002 of the U.S. dollar trade value, with a minimum of $2 per order. For high-volume traders, commissions can drop significantly, making it an attractive choice for those with substantial trading activity.
HFM, on the other hand, is rated with 4 stars for its commission and fee schedule, placing it at #31 out of 62 brokers in this category. Trading costs at HFM are slightly higher than the industry average, with standard account spreads around 1.2 pips, without a specific date range provided. Their Zero account offers a spread of about 0.7 pips after including commission fees, although no average is reported. In comparison, Interactive Brokers ranks #2 for commissions and fees, due to its low commissions and agency execution method, which aggregates prices from 17 of the world's largest interbank forex dealers without marking up spreads.
For active and large-volume traders, Interactive Brokers presents a more favorable fee structure. Discounts become available when specific monthly trading volumes are achieved, potentially lowering the minimum charge to $1 per order. Conversely, HFM traders may not benefit from such a flexible commission structure. With consideration of these factors, Interactive Brokers is highly ranked, attracting those interested in reduced trading costs, while HFM might appeal more to traders who prioritize other features beyond just commission rates.
| 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.
Interactive Brokers and HFM both cater to forex enthusiasts, offering forex trading either as CFDs or spot contracts. Interactive Brokers shines with a vast selection of 8,500 tradeable symbols, making it a compelling choice for those seeking diversity beyond forex. Although it provides 90 tradeable forex pairs, fewer than HFM's 102, Interactive Brokers compensates with access to actual cryptocurrency transactions and derivatives. In contrast, HFM does not offer real cryptocurrency purchases but does support cryptocurrency derivatives and boasts copy trading features, which Interactive Brokers lacks.
Interactive Brokers further distinguishes itself by granting access to exchange-traded securities on U.S. and international markets, allowing investors to acquire stocks like Apple and Vodafone directly. HFM, however, focuses primarily on CFD trading and does not facilitate the purchase of exchange-traded securities. This comprehensive access to diverse investment opportunities has earned Interactive Brokers a 5-star rating and the top spot in the Range of Investments category, as ranked by ForexBrokers.com. Meanwhile, HFM, with a robust offering in forex pairs and copy trading, holds a 4-star rating and ranks 36th in the same category.
| 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 wide range of trading platforms and tools, catering to diverse trading preferences. They each provide simulated trading through a free virtual demo account, and boast proprietary, in-house developed platforms. Both brokers support Windows-based desktop platforms as well as web-based platforms for browser trading. While each provides essential trading features, there are notable differences in the tools and services they offer. Interactive Brokers, rated 5 stars for its trading platforms and tools, does not include copy trading options or support for MetaTrader 4 (MT4) and MetaTrader 5 (MT5), unlike HFM. However, Interactive Brokers impressively offers 659 fields for watch lists and 85 drawing tools, significantly more than HFM’s 7 fields and 30 drawing tools.
In terms of charting and analysis, both brokers allow trades directly from stock charts, ensuring a streamlined trading experience. Despite both lacking support for DupliTrade and ZuluTrade, Interactive Brokers stands out with a higher industry ranking, placing 3rd out of 62 brokers on ForexBrokers.com for its trading platforms and tools category, compared to HFM’s 42nd position. With these features in mind, those seeking extensive chart customization and comprehensive watchlist capabilities may lean towards Interactive Brokers. In contrast, traders who prioritize functionalities like copy trading and access to widely used trading platforms such as MT4 and MT5 may 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.
Interactive Brokers and HFM both provide comprehensive trading apps for iPhone and Android devices, making them accessible choices for on-the-go traders. They offer traders the ability to receive stock or forex price alerts and to draw trendlines on charts, supporting technical analysis. However, Interactive Brokers sets itself apart with 97 technical studies for its charting features, compared to HFM's 30. This can be beneficial for traders who rely heavily on detailed technical indicators. Additionally, Interactive Brokers allows watchlist symbol syncing across devices, which HFM does not support, giving it an edge for users who want seamless access to their watchlists across platforms.
When it comes to tailored charting experiences, both apps allow users to view multiple time frames, but HFM scores with its auto-saving feature for chart drawings. For creating watchlists with real-time quotes, both apps perform equally well. User ratings and rankings reflect these differences: Interactive Brokers receives a top rating of 5 stars for its mobile trading app and is ranked 4th out of 62 brokers by ForexBrokers.com. In comparison, HFM garners 4 stars and is ranked 39th, revealing a preference among users for Interactive Brokers when considering app performance and functionality. This comparison indicates that while both apps provide solid trading features, Interactive Brokers might be better suited for those seeking more extensive charting tools and syncing capabilities.
| 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.
When comparing Interactive Brokers and HFM for market research capabilities, both platforms offer daily market commentary and access to forex news from top-tier sources like Bloomberg and Reuters. However, they differ in their technical analysis tools and additional resources. Interactive Brokers provides tools from Trading Central and offers unique market research from TipRanks and Acuity Trading, whereas HFM leverages Autochartist for its technical analysis insights. Additionally, Interactive Brokers and HFM both offer a sentiment-based trading tool and an economic calendar to stay updated on global events.
In terms of overall ratings, Interactive Brokers excels with a perfect 5-star rating for research, ranking third out of 62 brokers according to ForexBrokers.com. In contrast, HFM holds a 4-star rating, coming in at the 20th spot. This difference in rankings highlights Interactive Brokers' broader and more comprehensive suite of research tools, making it a preferred choice for those seeking in-depth market analysis.
| 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.
When comparing the educational resources for beginners offered by Interactive Brokers and HFM, both platforms provide a substantial amount of learning materials to help newcomers grasp forex and CFDs trading. Interactive Brokers and HFM each offer more than ten educational pieces such as articles, videos, and archived webinars dedicated to these financial instruments. Both firms conduct monthly webinars and maintain an easily accessible archive of recorded sessions. Additionally, each platform offers a good selection of beginner-friendly videos and comprehensive investment dictionaries with over 50 crucial terms defined.
Despite both brokers offering a broad array of educational tools, there is a noticeable difference in their overall quality and rankings. Interactive Brokers shines with an impressive 5-star rating for its educational offerings and ranks third among 62 brokers according to ForexBrokers.com. Meanwhile, HFM receives a 4-star rating, placing it at the 37th position. These ratings suggest that Interactive Brokers might be a more savvy choice for beginners seeking top-tier educational support in navigating the world of online trading.
| 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 62 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
|
|---|---|---|
| Overall Rating |
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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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