HFM(formerly HotForex)does not prohibit scalping. The "HFM?" page on their official website clearly states that "EAs, scalping, and hedging are possible," and scalping using automated trading (EAs) is also permitted (as of October 13, 2026).

However, the terms of service prohibit trading methods such as "arbitrage" and "picking/sniping," as well as trading that aims for risk-free profits by combining opposing orders at the timing of economic indicator announcements or gaps in market openings. Whether or not it constitutes a violation of the terms of service depends not on scalping itself, but on the specific trading strategy employed .

This article summarizesHFM'sprohibited scalping practices, actual costs for each account type and recommended accounts, leverage and lot size restrictions, and how to select instruments and trading methods,published on their official website and blog, as of October 13, 2026.

*This article was created by the MoneyCharger editorial team in accordance with their content creation policy , based on informationHFMpublished on October 13, 2026,HFM, trading account comparison, individual account pages, trading product pages, VPS hosting), and official blog (scalping, second-by-second scalping, hedging, leverage, KATANA account). Quotes from the terms are Japanese translations by our editorial team from the original English text; the original text takes precedence for official content. Trading conditions may change, so please check the latest information on the official website before trading. For precautions regarding the use of overseas FX brokers, please also refer to information published by including 's terms of service (Terms of Business February 2026 edition, Account Opening Agreement March 2026 edition), official website (Reasons to choose the Financial Services Agency , and for investment-related solicitation troubles, please refer to information published by the Consumer Affairs Agency

HFMallows scalping | EA and second-by-second scalping are not prohibited

HFM's official website lists "EA, scalping, and hedging are allowed" as features of its trading conditions. The official blog also states that "AtHFM, scalping using EAs and scalping trading that takes advantage of high leverage are possible," and regarding scalping that settles trades in seconds to minutes, it says that "scalping and scalping using EAs (automated trading) are not prohibited at all."

transaction	Possibility	basis
Scalping (discretionary trading)	○	Official website: "EA, scalping, and hedging are possible."
EA (Expert Advisor) scalping/second-by-second scalping	○	Official Blog (Scalping/Secondary Scalping)
Hedging within the same account	○ (Excluding those that aim for risk-free profits during periods of rapid fluctuation)	Official Blog (Hedging) / Account Opening Documents Article 26
Arbitrage (trading that takes advantage of delays and price differences)	×	Terms of Business Articles 7 and 8
Lockpicking/Sniping	×	Terms of Business Article 8, Account Opening Documents Article 26
Trading strategies that aim for risk-free profits by placing opposing orders during economic indicator announcements and gap openings	×	Account Opening Documents, Article 26
Hedging across multiple accounts and between different companies	×	Official blog (hedging)

On the other hand, the official blog's explanation of hedging also states that "trading that targets sudden price fluctuations or puts a heavy load on the server, such as high-speed scalping that is impossible to execute without using a program, is likely to be subject to penalties." While scalping itself is not prohibited, it is safer to avoid trading that targets only moments of sudden price fluctuations, such as during economic indicator announcements or gap openings . The details of prohibited trading will be explained in the " Prohibited Items " section later, along with the original terms and conditions.

Recommended account types for scalping with HFM

Because scalping involves small price movements per trade and a high number of trades, the most important factor when choosing an account isHFM's six account types, three are suitable for scalping: the KATANA account, the Pro account, and the Zero account. Comparing the spreads listed for each account on the official trading product page, the results are as follows: the actual cost, which includes spreads and transaction fees . Of

Account type	USD/JPY	Euro/Dollar	Pound-dollar	GBP/JPY	gold	Minimum deposit amount
KATANA account	0.4 pips	0.5 pips	0.6 pips	1.3 pips	$0.08	$500 (approx. $500.00)
ProDrive	1.1 pips	0.6 pips	0.6 pips	0.6 pips	$0.16	$100 (approx. $81.25)
Zero account(fees included)	1.3 pips (0.4 + 0.9)	0.6 pips (0.0 + 0.6)	0.6 pips（0.0＋0.6）	0.9 pips (0.0 + 0.9)	$0.16 (0.06 + 0.10)	No setting required (the FAQ on the same page states $25)
Premium Account	1.8 pips	1.4 pips	1.6 pips	2.2 pips	$0.32	No settings
Cent account	1.8 pips	1.4 pips	1.6 pips	2.2 pips	$0.32	No settings
Top-up bonus account	1.9 pips	1.6 pips	2.2 pips	3.9 pips	$0.35	No settings

For USD/JPY, EUR/USD, and gold, the KATANA account offers the lowest spreads, while for cross-currency pairs like GBP/JPY, the Pro account offers the lowest spreads. Although the Zero account has the narrowest spreads, when fees are added, it becomes the same as the Pro account for EUR/USD, GBP/USD, and gold, and higher than the Pro account for USD/JPY and GBP/JPY. The key is to choose the account based on the instruments you trade

If you're mainly interested in USD/JPY, EUR/USD, and gold, then the "KATANA account" is for you

The KATANA account, launched in April 2026, offers the lowest effective costs among the six accounts, with no commission fees and rates of 0.4 pips for USD/JPY, 0.5 pips for EUR/USD, and $0.08 for gold. Trading is possible without margin requirements as long as the specified lot size (5 lots for FX, precious metals, indices, and energy) is within the specified lot size, and the stop-loss level is 0%

However, the initial minimum deposit is $500 (approximately $500.00), and only one account can be opened per person. Also, leverage on new positions is restricted from 15 minutes before to 5 minutes after the release of economic indicators, and for one hour before and after the date change (00:00) (official blog). Trading is limited to major instruments: 30 FX currency pairs, metals, major stock indices, crude oil, and 3 crypto assets

If you want to trade cross-currency pairs and a wide range of other instruments, choose the "Pro Account"

The Pro account has no commissions, and the trading margins for EUR/USD, GBP/USD, GBP/JPY, etc., are 0.6 pips. Cross-yen pairs such as GBP/JPY and EUR/JPY have narrower margins than the KATANA account, making it the lowest cost among the six accounts. The minimum deposit is $100 (approximately $81.25), and you can trade all products, including stock CFDs and cryptocurrencies, and there is no one-account-per-person restriction like with the KATANA account. The official blog states that you can further reduce effective trading costs by accumulating points (TRP) in the loyalty program

If you want to manage your fees at a fixed amount, choose a "zero account"

The Zero account offers the narrowest spreads but incurs a $6 round-trip commission per lot of a currency pair. The official blog recommends the Zero account because of its narrow spreads and stop levels. Its key feature is that the cost is divided into "spread + fixed commission," making it easy to calculate the cost per trade. There is no minimum deposit requirement

Premium and Cent accounts have spreads that are approximately 1.6 to 3.7 times wider than those of the Pro account for the five instruments listed in the table. The Cent account, with 1 lot = 1,000 currency units, results in profits and losses that are 1/100th of those in the standard account, making it suitable for testing scalping techniques with small amounts. The Top-Up Bonus account, which offers deposit bonuses, has the widest spreads among the six accounts for all five instruments listed in the table. For detailed differences between each account, please see " HFMAccount Type Comparison "

The advantages of scalping with HFM

The advantages of scalping with HFMinclude high leverage, low-cost accounts, zero-cut policy (no margin calls), low stop-loss levels, and a supportive environment for EAs and VPS

item	HFMconditions	Impact on scalping
Maximum leverage	KATANA account: Unlimited (within specified lot size) / 2,000x leverage	You can open the required number of lots with a small amount of margin
Actual cost	USD/JPY KATANA 0.4 pips, EUR/USD KATANA 0.5 pips	The more transactions you make, the greater the difference becomes
Zero Cut	Yes (all accounts)	No margin call even if the balance goes negative
Stop-loss level	Margin maintenance ratio: 20% (0% for KATANA accounts)	Less likely to be forced to close positions due to short-term adverse price movements
EA/VPS	EA (Expert Advisor) allowed; VPS free if conditions are met	Automated trading can run stably 24 hours a day

You can trade with a maximum leverage of 2,000 times (unlimited leverage for KATANA accounts)

The five account types other than the KATANA account offer a maximum leverage of 2,000x for the Premium Pro Zero Cent account and 1,000x for the Top-Up Bonus account. The KATANA account allows trading without margin requirements as long as the number of lots is within the specified limit. The official blog estimates that with an effective margin of approximately $625.00 and a USD/JPY exchange rate of approximately $0.94, you can enter a trade of about 0.16 lots with a 25x leverage, and about 13.33 lots with a 2,000x leverage

When trading 1 lot (100,000 units) of USD/JPY at approximately $0.94, the required margin is approximately $46.88 at 2,000x leverage and approximately $93.75 at 1,000x leverage (calculated by our editorial team). While higher leverage allows you to establish a position with less capital, it also increases the potential profit or loss for the same price movement. Therefore, it is important to determine the lot size by working backward from your stop-loss level. Details of the restrictions are explained in " HFMLeverage "

You can choose an account with a narrow spread

For all three KATANA, Pro, and Zero accounts, the lowest cost account is less than half that of the Premium account for the five instruments listed in the table (USD/JPY, EUR/USD, GBP/USD, GBP/JPY, and Gold). For example, if you trade EUR/USD 20 times a day (1 lot), the difference between the Premium account (1.4 pips) and the KATANA account (0.5 pips) is 0.9 pips per trade = $9, or $180 per day (calculated by our editorial team). Spreads by account and instrument can be found in the " HFMSpread List "

With the zero-cut system, there are no margin calls

HFMemploys a zero-cut system for all accounts (official blog), meaning that even if your account balance goes negative due to sudden fluctuations, you will not be charged for the negative amount. Even with scalping, which often involves trading large lot sizes, losses are limited to the funds deposited into your account. The zero-cut mechanism is explained in " Overseas FX Zero-Cut System "

The stop-loss level is 20% (0% for KATANA accounts)

HFM's stop-loss level is a margin maintenance ratio of 20% (margin call at 50%), while KATANA accounts have a level of 0% (margin call at 20%). According to calculations on the official blog, if you hold 10 lots with an effective margin of approximately $312.50 and USD/JPY at approximately $0.94, the margin maintenance ratio will be approximately 66%, and with a stop-loss level of 20%, forced liquidation will not occur until the effective margin falls to approximately $93.75

EA is available, and VPS is free if certain conditions are met

HFMallows you to use EAs with MT4 and MT5. For running EAs 24/7, the most basic VPS plan is free if you have made a net deposit of over $400 in the past 30 days and traded at least 2 standard lots in the past month. If you do not meet these conditions, there are paid plans starting from $25 per month (see the official website "VPS Hosting"). For information on how to choose an EA, please see " Introduction to Automated Trading (EA) in Overseas Forex "

Disadvantages and precautions of scalping with HFM

When scalping with HFM, there are five things to be aware of: zero account fees, leverage restrictions based on balance and time of day, lot size and position size limits, times when spreads widen, and stop levels for each instrument

Points to note	Content	countermeasure
Zero account fees	One lot of a currency pair costs $6 round trip	Compare accounts based on their actual cost, including fees
Leverage restrictions	With an effective margin of $5,000 or more, the leverage is 1,000x, and 300x before and after economic indicator announcements	Allow sufficient margin in the required deposit
Maximum number of lots/positions	60 lots per position, maximum 500 positions	Large orders should be split into smaller orders
Spread widening	Early morning (6-8 AM Japan time) and around the time of economic indicator releases	Avoid trading during the specified time period
Stop level	Major currency pairs and gold: 0 pips; Australian dollar and New Zealand dollar pairs: 2-6 pips depending on the account	Check the official details page for the stock you want to trade

Zero accounts incur transaction fees

The Zero account charges a commission of $6 round trip per lot for currency pair trades ($0.06 for 1,000 units of currency) and $10 round trip per 100 ounces for gold. If you trade 20 times a day with 1 lot, the commission will be $120, which is equivalent to adding a spread of 0.9 pips (calculated by our editorial team) to the USD/JPY spread. Please compare the commission-free KATANA account and Pro account with the actual costs of the instruments you trade before making your choice

Leverage is restricted depending on the amount of margin and the time of day

According to the official blog, the maximum leverage for the Premium Pro Zero Top-Up Bonus account decreases as follows depending on the effective margin (balance + unrealized profit/loss). The Top-Up Bonus account does not have a 2,000x tier as its original limit is 1,000x, and the Cent account is determined in cents and starts at 1,000x from the equivalent of 50,000 cents (equivalent to $500)

Effective margin	Maximum leverage
Up to $4,999.99	2,000 times
Equivalent to $5,000 to $39,999.99	1,000 times
Equivalent to $40,000 to $99,999.99	500 times
Over $100,000 worth	200 times

The official blog states that "even if leverage restrictions are applied, existing positions will not be forcibly liquidated," and the restrictions only apply to newly opened positions. In addition, leverage is restricted to 300x from 15 minutes before to 5 minutes before the release of important economic indicators, and to 500x around the time of rollover (6-8 AM Japan time, 5-7 AM during daylight saving time). Note that if your profits increase and your effective margin exceeds the equivalent of $5,000, the required margin will double even for the same lot size

There are limits on the number of lots per order and the number of open positions

According to the official trading account comparison, the maximum trade size per position is 60 lots (1,000 cents for cent accounts and 6,000 cents for the entire account), and the maximum number of open positions is 500 (300 for cent accounts). According to the official blog, some instruments have lower limits, such as 10 lots per position for USDCNH and 5 lots for USDSGD. If your order fails even though the lot size is below the limit, please check if the total of your positions, including other positions, has reached the limit

There are times when the spread widens

The official blog lists early mornings (6-8 AM Japan time), before and after the release of important economic indicators, and the year-end/New Year and Christmas holidays as times when spreads tend to widen. In the scalping explanation, it states that during important indicator releases and statements by key figures, "spreads can widen to tens of times the normal size." In scalping, where the goal is to profit from a few pips, a widening spread directly impacts profits and losses, so it is essential to check the economic calendar for release times and refrain from trading during those times

Stop levels vary depending on the instrument and account

A stop level is a restriction that prevents limit and stop orders from being placed within a certain distance from the current price.HFMofficial website's stock details page lists the "limit and stop order levels (displayed in points)" for each account type (as of October 13, 2026)

Brand	Premium Scent Top-Up KATANA	Zero Pro
USD/JPY, EUR/USD, GBP/USD, EUR/JPY, GBP/JPY, Gold	0	0
AUD/JPY, AUD/USD	40 points (4.0 pips)	20 points (2.0 pips)
NZD/JPY	50 points (5.0 pips)	20 points (2.0 pips)
British Pound, New Zealand Dollar	60 points (6.0 pips)	40 points (4.0 pips)

Major currency pairs such as USD/JPY and EUR/USD, as well as gold, have a stop level of 0 in all accounts, allowing you to place profit targets and stop losses within a few pips. For AUD/NZD-related currency pairs, there are limits of 2 to 6 pips depending on the account, with Zero and Pro accounts having narrower limits. This is why the official blog recommends the Zero account due to its narrower spreads and stop levels. You can check the price of the instrument you are trading on the details page, which appears when you click on the instrument name on the official trading product page

Prohibited practices in HFMscalping

HFM's prohibited trading practices are outlined in Sections 7-9 of the "Terms of Business" and Section 26 of the "Account Opening Agreement." While scalping is not prohibited, the following trading practices violate the terms and conditions

Arbitrage (trading that takes advantage of price delays and price differences between brokers)

Article 7.1 of the Terms of Business stipulates that, regarding situations where the price on the trading screen deviates from the market price due to delays in internet connections or price feeds, "we do not permit arbitrage on the trading platform" and "trades that rely on arbitrage opportunities due to price delays may be canceled without prior notice" (translation by our editorial department). This includes latency arbitrage, where orders are placed at the delayedHFMprice after looking at the prices fed by other companies, and trades that involve offsetting trades based on price differences between brokers

Furthermore, Article 9.1 states that trades executed at prices that do not exist in the market or at outdated prices (latency trades) can be invalidated or canceled. If an abnormal price is displayed due to a system malfunction, no profit will be recognized even if a trade is executed at that price. Arbitrage in general is explained in " Arbitrage in Overseas Forex ."

Lockpicking/Sniping

Section 8.1 of the Terms of Business states thatHFM's services do not conform to trading methods known as "arbitrage trading" or "picking/sniping," and defines sniping as "a situation in which a customer prematurely buys or sells near a predetermined price" (translation by our editorial team). The official blog explains picking as "short-term trading that targets only specific price ranges and timings," and warns that it is easily applicable to scalping

Trading that aims for risk-free profits from sharp fluctuations caused by economic indicator announcements and gap openings

Article 26.1 of the account opening documents prohibits arbitrage, picking/sniping, the use of "certain automated trading systems or EAs," and "trading that aims to profit from risk-free trades by placing opposing orders in the same or a different account during times of sudden market changes, news announcements, or gaps at the start of trading" (translation by our editorial team).While hedging within the same account is permitted, please note that trading that aims to profit from risk-free trades by combining opposing orders at the time of sudden market fluctuations is prohibited, even within the same account.

The terms and conditions prohibit "certain" automated trading systems, while EAs themselves are "permitted" on the official website. The official blog also lists the aforementioned prohibited trades using automated trading (EAs) as prohibited. The official blog also states that trading at the time of important economic indicators is not immediately a problem if it is done "once or twice," but prohibits "trading that targets only times when the market is likely to fluctuate significantly." When using an EA, avoid settings that target only the moment of indicator announcements or logic that combines opposing orders

Hedging across multiple accounts and between different companies

According to their official blog,HFMallows only hedging within the same account ;HFMbetween multipleHFMand other companies' accounts, and between acquaintances is prohibited. Hedging that attempts to eliminate losses on one side and profit on the other using zero-cut or bonuses is also prohibited. If you are running an EA on multiple accounts, make sure the settings prevent opposing positions from being opened across accounts. The concept of hedging is hedging accounts, between accounts explained in " Hedging in Overseas Forex ."

Using AI analysis software and cashback arbitrage

Section 8.4 of the Terms of Business "completely prohibits" the use of software that applies artificial intelligence (AI) analysis toHFM's systems and trading platforms (our editorial team's translation). When installing EAs or tools, please ensure that they do not have functions to analyzeHFM's servers or provided prices

Furthermore, Article 22.4 of the account opening documents states that if there are signs or suspicions of "cashback arbitrage" in addition to arbitrage or fraudulent activity,HFMmay close or suspend all trading accounts, invalidate any bonuses already granted, and invalidate all trades, including profits and losses. Although the terms and conditions do not define this term, it generally refers to trades in which profits and losses are repeatedly offset with the sole purpose of obtaining cashback. Since cashback is received for normal trades, please avoid offsetting trades solely for the purpose of obtaining cashback

Measures taken in case of violation

Section 26.1 of the account opening documents states that ifHFMdetermines that a prohibited transaction has been conducted, it may take one or more of the following measures without prior notice (translated by our editorial team):

• Account Closure
• Account indefinite suspension
• Unlimited investigation of the account
• A penalty fee equal to or greater than the amount obtained through prohibited transactions will be charged
• The account will be closed, profits from prohibited transactions will be confiscated, and only the deposit amount will be refunded (if profits have already been withdrawn, the difference will be confiscated from the related account)

KATANA accounts have specific prohibited trading practices. The official blog lists hedging between multiple accounts withinHFMor with accounts at other companies, closing only one side of a hedged position immediately before or during economic indicator announcements or market openings and closings, and hedging for the purpose of eliminating market risk. It states that violations may result in the invalidation of trades or suspension of the account. The official blog states that there is no clear definition of cases that will be subject to penalties. The basic principle to avoid being judged as violating the terms is to perform normal scalping based on technical analysis, etc., without being biased towards specific prices or timings. If you are unsure about a trading method or EA, please check withHFMsupport before using it

Stocks suitable for scalping with HFM

In scalping, the basic principle is to choose instruments with narrow spreads and high trading volume. We have compiled a list of instruments with low effective costs atHFM, along with the lowest-cost accounts for each

Brand	The account with the lowest effective cost	KATANA/Pro/Zero (fees included)	Typical operating hours (Japan Standard Time)
USD/JPY	KATANA account	0.4/1.1/1.3 pips	Tokyo time (9am-3pm) / New York time (9pm onwards during daylight saving time)
Euro/Dollar (EUR/USD)	KATANA account	0.5/0.6/0.6 pips	London time (from 4 PM during daylight saving time) / New York time
British Pound/Dollar (GBP/USD)	All three accounts are the same	0.6/0.6/0.6 pips	London time / New York time
British Pound/Japanese Yen (GBP/JPY)	ProDrive	1.3/0.6/0.9 pips	London time
Gold (XAU/USD)	KATANA account	$0.08 / $0.16 / $0.16	NY time

USD/JPY | 0.4 pips with KATANA account

The USD/JPY pair is easy to trade during Japanese trading hours, and news is readily available in Japanese. AtHFM, the KATANA account has the lowest commission at 0.4 pips, the commission-free Pro account is 1.1 pips, and the Zero account is equivalent to 1.3 pips including commissions. If you primarily trade USD/JPY, even if the KATANA account is unavailable, the Pro account will still be more cost-effective than the Zero account

Euro/Dollar (EUR/USD) | All 3 accounts traded less than 0.6 pips

The EUR/USD is the most traded currency pair in the world, andHFM's spreads are low across all three account types: 0.5 pips for the KATANA account and 0.6 pips for the Pro and Zero accounts. Price movements tend to be more pronounced during the overlap of London and New York trading hours, making it suitable for those who trade at night

British Pound/Dollar (GBP/USD) | Large price fluctuations, but the cost is the same for all three accounts

The GBP/USD pair tends to have larger price movements than the EUR/USD pair, making it easier to profit from short-term price swings, but also increasing the risk of larger losses when the market moves against you. AtHFM, all three accounts—KATANA, Pro, and Zero—have a profit margin equivalent to 0.6 pips. Please trade with a moderate lot size and set a stop-loss order

Gold (XAU/USD) | KATANA account offers the lowest cost

Gold is a popular instrument for scalping due to its volatile price movements.HFM's spreads are $0.08 per ounce for KATANA accounts, $0.16 for Pro accounts, and $0.16 including commission for Zero accounts. It is the only instrument other than FX that can be traded even with a cent account, so you can try it with a small amount. Note that spreads tend to widen before and after the release of US economic indicators. Gold trading methods are explained in " FX Gold Scalping Methods "

GBP/JPY | Cross-yen pairs are cheapest with a Pro account

The GBP/JPY pair is one of the most volatile currency pairs among the major currency pairs. AtHFM, the Pro account has the lowest commission at 0.6 pips, the KATANA account is 1.3 pips, and the Zero account is equivalent to 0.9 pips including commission. If you mainly trade cross-yen pairs such as GBP/JPY and EUR/JPY, the Pro account is suitable. Because of its rapid price movements, losses can also be substantial, so it is a pair that should only be handled after you have gained experience in trading

Practical Techniques for HFMScalping

From here, we will introduce three representative scalping techniques used on 1-minute to 5-minute charts. Bollinger Bands and RSI are standard features in MT4 and MT5, while RCI is used by adding a custom indicator. The effectiveness of these techniques varies depending on market conditions, so please test them with a small amount on a demo account or cent account before using them

1-minute chart × Bollinger Bands × RSI counter-trend strategy

This is a counter-trend trading strategy that combines the ±2σ of Bollinger Bands with the overbought/oversold indicators of the RSI to target reversals in range-bound markets. Consider selling when the price reaches +2σ and the RSI is above 70, and buying when it reaches -2σ and the RSI is below 30. Profit-taking is based on the middle line (moving average) or the opposite band, while stop-loss is set when the price clearly breaks through the bands. This strategy is not used when there is a strong trend, as the price will continue to move along the bands

A method that targets the reversal timing of the RCI

This method displays three RCI (Rank Correlation Index) lines: short-term (9 periods), medium-term (26 periods), and long-term (52 ​​periods), and enters trades only in the direction of the trend on the higher timeframe. The trend is confirmed on the 1-hour chart, and a trade is entered when the short-term RCI on the 5-minute chart crosses the ±80% level in the direction of the trend (buy on dips, sell on rallies). There is also a method of entering a trade in the direction of the trend when all three RCIs cross ±80%. Stop losses are placed at the most recent high or low

Utilizing price action (pin bar thrust)

Price action is a method of interpreting market participants' psychology from the shape of candlestick charts. In scalping, pin bars, which signal reversals, and thrusts, which indicate the continuation of a trend, are commonly used

Pin bar

A pin bar is a candlestick with a small body and a long wick on one side. The long wick indicates that the price moved in that direction and then was strongly pushed back. Pin bars that appear near support or resistance levels are used as a signal for a reversal

Thrust (thrust up, thrust down)

A thrust up occurs when the closing price of a candlestick exceeds the high of the previous candle, indicating that the upward momentum will continue. Conversely, when the closing price falls below the low of the previous candle, it is called a thrust down. When a high or low breakout occurs simultaneously, it provides a basis for entering a trade in the direction of the trend. Scalping techniques in general are also explained in " Scalping Techniques in Overseas Forex ."

Tips for winning with HFMscalping

Decide on stop-loss and take-profit rules before entering a trade

In scalping, the basic principle is to place profit-taking and stop-loss orders simultaneously with entry and close the positions according to the rules. For example, if your profit target is 5 pips and your stop-loss is 3 pips, you would gain +30 pips if you win 6 out of 10 trades, and -12 pips if you lose 4, for a total of +18 pips (excluding spreads and fees). You should calculate the required win rate in advance based on the ratio of your profit target to your stop-loss level

Determine the lot size by limiting the loss per trade to a certain percentage of the capital

The lot size is calculated not from the leverage limit, but from the amount you are willing to lose in a single stop-loss. For example, if you have approximately $625.00 in capital and want to limit your losses to 2% (approximately $12.50) per trade, then with a stop-loss of 5 pips on USD/JPY, the maximum lot size would be 0.4 lots (1 pip = approximately $2.50) (calculated by our editorial team).HFMallows you to open large lot sizes with leverage up to 2,000 times, but you should avoid trading with full leverage

Avoid trading before and after economic indicator announcements and in the early morning

Spreads widen before and after the release of important economic indicators, andHFMlimits maximum leverage to 300x. Spreads tend to widen in the early morning hours, from 6 to 8 AM Japan time. Check the release times onHFM's economic calendar and refrain from making new entries during those times. Indicator trading, which targets only the moment of indicator release, is a type of trading that is likely to cause problems under the terms and conditions

Keep a record of your trades and reduce your lot size when you experience a losing streak

Because scalping involves a high number of trades, emotional trading can easily lead to significant losses. Recording your entry reasons and results, and establishing rules such as reducing your lot size or stopping trading for the day if you experience a losing streak, can help prevent losses from escalating

Frequently Asked Questions about HFMScalping

Is scalping prohibited in HFM?

It is not prohibited.HFMofficial website's "Why ChooseHFM" page clearly states that "EAs, scalping, and hedging are permitted" (as of October 13, 2026). What is prohibited is arbitrage (trading that takes advantage of delays in price feeds or price differences between brokers), picking/sniping, trading that aims for risk-free profits by combining opposing orders during economic indicator announcements or sudden price gaps, and hedging across multiple accounts or between different brokers

Is it possible to do scalping in seconds using HFM?

Yes, it is possible. The official blog states that "scalping and second-by-second scalping using EAs (automated trading systems) are not prohibited at all." On the other hand, the official blog's explanation of hedging states that trades that aim for rapid price fluctuations or trades that put a heavy load on the server, such as "high-speed scalping that would be impossible to execute without using a program," are likely to be subject to penalties. Avoid using it to target only the moment of economic indicator announcements

Which HFMaccount is recommended for scalping?

If you mainly trade USD/JPY, EUR/USD, and gold, the KATANA account (USD/JPY 0.4 pips, EUR/USD 0.5 pips, minimum deposit $500) is recommended. If you also trade cross-currency pairs such as GBP/JPY and stock CFDs, the Pro account (GBP/JPY 0.6 pips, minimum deposit $100) is recommended. With the commission ($6 round trip per lot), the Zero account comes out to the same 0.6 pips for EUR/USD as the Pro account and 1.3 pips for USD/JPY (calculated by our editorial team based on official account-specific spreads)

Can I use HFMfor scalping with an EA (Expert Advisor/automated trading system)?

Yes, you can. Scalping using EAs is possible onHFM's MT4 and MT5. However, Article 26.1 of the account opening documents lists the use of "certain automated trading systems and EAs" as prohibited trading practices, in addition to arbitrage and picking/sniping. Do not use EAs that aim to exploit delays in price feeds or EAs that open opposing positions across accounts

Is HFM's VPS free to use?

It's free if you meet the conditions. According to the official website, it's free if you have made a net deposit of $400 or more in the past 30 days and have traded at least 2 standard lots in the past month. If you don't meet the conditions, there are paid plans of $25, $50, or $80 per month. You can apply through myHF (member page)

Is hedging prohibited in HFM?

Hedging within the same account is permitted. However, Article 26.1 of the account opening documents prohibits trading that aims for risk-free profits by placing opposing orders during sudden market changes, economic indicator announcements, or gap openings, even within the same account. Furthermore, according to the official blog,HFMbetween multipleHFMand other companies, between acquaintances, and hedging using zero-cut bonuses is prohibited. Note that positions that are fully hedged within the same account will have zero margin requirement (official blog). The number of swaps and swap-free days when holding positions overnight hedging accounts, between are explained in " HFMSwaps "

What are the minimum and maximum lot sizes that can be ordered when scalping?

The minimum lot size is 0.01 lots (1,000 units of currency for non-cent accounts, and 10 units of currency for cent accounts). The maximum is 60 lots per position (1,000 cent lots for cent accounts, and 6,000 cent lots for the entire account), and the maximum number of positions that can be held is 500 (300 for cent accounts) (official "Trading Account Comparison"). Some instruments have lower limits, such as 10 lots for USDCNH and 5 lots for USDSGD (official blog)

What percentage is the stop-loss level for HFM?

A margin maintenance ratio of 20% triggers a stop-loss (margin call at 50%). Only the KATANA account has a stop-loss level of 0% (margin call at 20%) (official "Trading Account Comparison"). A zero-cut system is used for all accounts, so there are no additional margin calls even if the balance goes negative (official blog)

Summary:HFMscalping is possible. What is prohibited is the "targeting method"

This article summarizes information about scalping at HFM(formerly HotForex) based on their terms of service, official website, and blog. Here's a breakdown of the key points

• Scalping, EAs, second-by-second scalping, and hedging within the same account are permitted(see official website: "EAs, scalping, and hedging are permitted"). However, trading that aims for risk-free profits by placing opposing orders during rapid price fluctuations is prohibited, even within the same account.
• Prohibited practices include arbitrage, picking/sniping, risk-free counter-orders during rapid price fluctuations, and hedging across multiple accounts or with different brokers. Violators may face measures such as account closure and forfeiture of profits.
• For USD/JPY, EUR/USD, and gold, the KATANA account offers the lowest costs, while for cross-currency pairs, the Pro account is the mostcost-effective. The Zero account has the same or higher costs than the Pro account, including fees.
• Leverages are 1,000x for effective margin of $5,000 or more, and 300x before and after economic indicator announcements. 60 lots per position, maximum 500 positions. Spreads tend to widen in the early morning and before and after economic indicator announcements.

If you use MoneyChat, the more trades you make with scalping, the more cashback you accumulate

Our website, "Money Charger (Manecha),"HFMis an official IB partner ofOpening an account through Manecha will earn you cashback with every trade. Trading conditions such as spreads and fees are the same as when opening an account directly through the official website, and the more frequent your trading (scalping), the greater the effect of the cashback in reducing your actual costs.

Account type	BTC/USD	Gold (XAU/USD)
Top-up / Premium	$16.00/lot	$12.00/lot
Pro/Zero	$6.40/lot	$5.60/lot
KATANA	$2.80/lot	$2.40/lot
Saint	$1.60/lot	$0.12/lot

*Cashback rates may vary. For a list of cashback amounts by account type, how to receive it, and whether you can switch existing accounts, please see "How to Receive HFMCashback ". The procedure for opening an account is explained in " HFMHow to Open an Account ", andHFMthe safety and reputation of are explained in " HFMReviews and Testimonials "

＼ The terms and conditions are the same as the official site, and you get cash back with every transaction! ／

*Trading conditions, prohibited actions, and spreads are subject to change. The information in this article is based onHFMTerms of Service, official website, and official blog as of October 13, 2026. Please check the official website and myHF for the latest conditions. Overseas FX trading involves exchange rate fluctuation risk, and the higher the leverage, the greater the potential for significant losses in a short period of time. Investment decisions should be made at your own risk