As traders, our primary concern is to conserve our trading capital and grow it without taking any significant risks in the market. In reality, the FX market is all about high-volume trading and substantial volatility, which carries risks of heavy losses, alongside providing plenty of opportunities for retail traders to earn a considerable profit. In this regard, a Forex bonus can be a massively attractive proposition, where brokers give out free trading credits to supplement the trading capital.
One of the significant risks of bonuses in the market is its availability and its inverse relationship with regulation. We do find plenty of brokers online that offer handsome bonuses to its traders, but their regulatory status may be questionable. On the contrary, HYCM is a highly regulated broker that offers only a small bonus and a few trading benefits, in order to satisfy the demands of its customers.
With regulatory licensed issued from the FCA of the UK (reference number: 186171), the CySEC, the DFSA of Dubai, the CIMA of Cayman Islands, and the IBC of the SVG, HYCM is often the pick of the lot for serious traders. However, on the flipside, HYCM bonuses are a bit low when compared to other bonus programs in the market.
Our HYCM review will help you to understand the numerous trading benefits that are associated with depositing funds into the HYCM Forex brokerage account. While there aren’t many rewards to look forward to, the existing HYCM offers do provide a useful environment that should suit the average trader. These programs are especially convenient for traders who are serious about trading the Forex market the way it is supposed to be traded.
We want to stress that HYCM is not a bonus-oriented broker, but one that follows all the regulatory requirements that are imposed by some of the most influential regulators in the market. As a result, the broker only offers a bonus to clients that sign up with their brokerage located in the Cayman Islands. Therefore, if you wish to sign up for a bonus, you must sign up for an account at HYCM Limited, which is regulated by the CIMA. The broker’s European and UK divisions don’t offer any promotions as of now, but we will keep you updated if there are any changes to the company’s policies down the line.
The broker’s deposit bonus program offers a flat 10% trading credit on all deposits that are worth at least $100. The maximum bonus offered through this program is $5000, which means that deposit amounts of up to $50,000 are eligible for this promotion. Such an offer is only offered to new clients, but traders can redeem the offer for any number of deposits, provided their total bonus amount stays within the $5000 limit. The 10% HYCM deposit bonus may not be considered as substantial, but it is an advantage when we consider the regulatory restrictions faced by the company.
You have to abide by the several terms and conditions that are associated with the credits program. For starters, you must verify your account within a specific deadline, or you risk losing access to your account. Then there is a minimum trading requirement for the bonus, which is 30 standard lots for every $1000 obtained as a bonus.
For a smaller bonus figure, the minimum trading requirement is calculated proportionally, but regardless of the amount, you must complete the minimum trading requirement within 60 days. If you are unable to transact the minimum required lots within 60 days, the broker reserves the right to reverse the bonus. HYCM urges its users to read through its promotions T&C and never to accept the bonus if you do not agree to the terms of business.
The company has decided to waive the fees of transactions for most of its payment methods, with, of course, certain strings attached. For deposits, the broker does not charge any fees for all of its payment modes, with the minimum deposit being $20. However, there is a minimum threshold for bank wire, as the broker waives charges for deposits above $250. Any deposit amount below the minimum limits may incur fees and transaction costs.
Withdrawals are also mostly free of any transaction costs, but the minimum amount for bank wire goes up to $300. It means that the broker does not charge any withdrawal fees for withdrawal amounts that are greater than $300, but you may still face any bank transaction charges, currency conversion fees, or any other costs that are incurred by the bank. Also, if you are withdrawing over $5000 through Skrill or NETELLER, the broker may charge an additional 1% processing fee of the entire transaction amount. Regardless, the absence of fees for the average transaction should provide an incentive for traders to save some serious cash while depositing or withdrawing funds.
The Invite Friends program is similar to a refer-a-friend scheme, which most brokers, such as FBS, AVATrade and FXTM, offer, where traders can refer friends, family, and acquaintances to HYCM for a cool $200 payment per referral. All you have to do is invite your friend to join HYCM, ask them to verify their account, deposit $500, and trade a minimum of 3 standard lots. Once these parameters are verified, the broker will pay the $200 cash bonus per invite directly to the referrer’s account by 15th of the month following the month for which it is due.
The bonus lies on the referrer to have a valid trading account themselves, avoid any instances of bonus abuse, and ensure that the traders are not from countries that are restricted by the company. The Invite Friends program is different from the IB, Affiliate, and the White Label programs, as the latter is all about commercializing the referral program for an unlimited income stream. Hence, if you are looking at the referral program as a main income stream, then you must choose the dedicated referral program such as the IB, Affiliate, and White Label, and not the Invite Friends bonus.
HYCM is not supportive of a bonus-oriented Forex brokerage. Although regulation plays a crucial part in this decision, the company is also aware of the broker-trader conflicts that are a part of the numerous promotional programs that are available in the market. From HYCM’s perspective, here are some T&C that you must keep in mind:
In a market that is saturated with excellent promotions, rewards, and offers, Henyep’s group of Forex brokerages may not make much sense from a free money perspective. However, what does stand in its favor is the legacy, the decades of proven reliability, regulatory protection, and safety of funds, which is paramount for any trader. While there is a promotional program through its Cayman operation, it may be sufficient for most traders. Still, professional traders may not prefer being tied down with any trading conditions that are typically associated with several offers. Therefore, despite the low HYCM bonus offering, the broker does make sense from a trader’s perspective.