The online broker HFM (formerly HotForex) now offers its clients the possibility of investing in physical shares of the main stock markets directly and not only through CFDs (Contracts For Difference) of shares, as it has traditionally done.
Through this new service, HFM clients can build more complete portfolios and access a greater variety of markets. In addition, they will be able to earn dividends on the shares they have purchased so that they will receive passive income on a regular basis.
More information about the HFM broker and its online brokerage services for multiple markets in the following review: HFM online broker review
With this, HFM joins the family of online Forex and CFD brokers that have started offering physical stocks to their clients, meaning that this is now a true multi-asset broker with access to multiple global markets.
Advantages of investing in physical shares in the HFM broker
The main advantages that HFM offers to stock investors are:
- Possibility of investing in more than 2000 shares.
- Buy fractional shares with a minimum of $5.
- Shareholders will be able to receive dividends directly into their accounts.
- Zero commissions on buy and sell transactions (closing long positions) of shares. There are also no exchange fees.
- Direct access to the most important shares of market leaders such as Apple, Tesla, Alphabet, Meta, and many others.
- Direct access to the most important stock exchanges worldwide with market prices in real-time.
- Physical stock buy trades are executed on the Metatrader 5 platform, the successor of Metatrader 4, a very complete multi-asset application that allows the application of trading robots.
In addition, HFM also provides market sentiment data that the trader may find useful:
Physical stocks in HFM
When trading physical stocks on Metatrader 5, the trader gets real-time quotes on their preferred stocks from major global stock exchanges. This allows you to invest in the shares of leading companies from around the world. Since buying shares gives the trader ownership of the underlying asset, you can receive dividends that are paid directly into their HFM account.
All stocks have a set price that depends on the company’s fundamentals, including earnings, revenue and future growth prospects. Other aspects that influence the share price are macroeconomic factors such as interest rate policies and GDP growth and global market sentiment.
By investing in stocks from different companies and sectors, the investor can create a portfolio that is more diversified and balanced. In addition, it offers protection against complex market conditions and maximizes the trader’s potential profits.
As we already indicated, at HFM we can invest in more than 2000 shares without commissions, through the Metatrader 5 platform.
Based on your capital, you also have the ability to buy fractional shares. This allows the trader to buy only a number of dollars in shares, depending on the amount of money he wants to invest.
Physical Stock Contract Specifications
The specifications for share contracts are as follows:
Trading conditions for physical shares at HFM
|Trading instruments||More than 2000 physical shares|
|Acquisition of the underlying shares||Yes|
|Access to stock dividends||Yes|
|Trading platform||Metatrader 5|
|Trading hours||Horarios reales de las bolsas de valores|
|Negative Balance Protection||No|
- Real stock trading at HFM is unleveraged. If you are interested in trading with leverage, you can use stock CFDs offered by this broker that offer leverage of up to 1:5.
- The trader can buy up to 1000 shares each month without paying commissions.
- It is not possible to open short positions on physical shares at HFM. To short trade shares use HFM Stock CFDs which allow you to open both long and short positions.
- Types of orders that we can use: For the purchase of shares we can use market orders. HFM also offers stop orders.
- Payment of dividends: HFM will pay dividends directly to the trader’s account in proportion to the number of shares owned.
- At the moment, HFM does not offer the option to move your open positions to another broker.
You can obtain more information about the HFM stock investment service, open a demo account or a real account on the company’s website using the following link: