I’m looking at HFM’s different account options and trying to figure out which one actually reduces my costs the most once rebates are factored in.
I see they have different account types with different spread structures, and some might charge commissions. I’m trying to understand if a lower-spread account that charges commission is actually cheaper than a standard account when I factor in rebates over time.
Has anyone actually switched between HFM account types and noticed a real difference in total cost after rebates? I want to make sure I’m on the account type that minimizes my true trading cost.
This depends on your trading volume. HFM typically offers three account types: standard, raw spread, and potentially a premium tier. Standard has wider spreads, no commission. Raw spread has tighter spreads but charges commission per lot.
Rebates apply to both, but they work differently. On a standard account, you’re paying more spread but getting rebate on that spread. On a raw account, you pay commission plus tighter spread, and rebate applies to the commission and spread. Calculate: for 100 lots per month, standard might cost you $50 net after rebates; raw might cost $45. The break-even is usually around 80-100 lots monthly. Below that, standard wins. Above that, raw often wins. Test both for a month and compare actual costs.
I trade about 60-80 lots per month on average, so I’m in that middle zone.
I started on a standard HFM account and the spreads were annoying me. I switched to their raw spread account and the commission per lot seemed expensive at first. But after factoring in GlobeGain rebates on both the spread and commission, my monthly cost dropped about 8-10%.
For me it was worth the switch because I like tighter spreads for scalping. But if you’re a swing trader taking fewer positions, the standard account probably keeps you ahead since you’re not paying commission on every trade.
Standard account cheaper for low volume. Raw spread better for active traders.
The account type matters but it’s not a huge difference if you’re optimizing with rebates either way.
I’d say test whichever feels more comfortable for your trading style. If you like tight spreads and trade often, raw spread works. If you like simplicity and trade less frequently, standard is fine.
Raw spread better for high volume traders only.
Standard cheaper for beginners and casual traders.
Calculate your monthly cost on both accounts with your average volume to decide.