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RECOMMENDED FOREX BROKERS
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JM Financial is a Kuwait based forex Broker, which claims to be more focused on institutional clients. In this article we will tell you 5 things you need to know if you are considering opening an account with them.
1.Will your funds be safe at JM Financial
As we have mentioned in our other reviews, regulation should be a key factor when choosing an FX Broker. JM Financial is regulated by the Ministry of Commerce in Kuwait. This is not particularly reassuring, since the Ministry is not a financially specific regulator. Effectively the license is necessary to open a company of any type, meaning no particular forex client protection rules are applied.
You may know that some jurisdictions require the implementation of segregated accounts, limiting the broker’s ability to operate with clients’ funds. Other rules include the so called compensation schemes – each broker sets aside a portion of his profits in a pool, guaranteeing clients’ investments in the off chance the broker goes bankrupt. A broker regulated in Cyprus (with the local CySEC), for instance guarantees up to EUR 20 000 per account. You will not gent any of these protections if you trade with JM Financial.
2. Account types matter
JM Financial offers two account types, based on the client’s initial deposit – Gold and Platinum. Gold is the basic one, wile in order to qualify for a Platinum account one must deposit over $25.000. The key difference between the two is the size of the commission – $11 per lot for Gold and $9 per lot for Platinum. This may not seem like a lot, but can add up over time.
Swap-free (Islamic) accounts are also offered.
3. What are the trading conditions?
Since we already started discussing account types, lets look at the trading conditions. The only offered instruments are Forex pairs, spot gold and spot silver. This may not suite all of your trading needs (if you like equity index CFDs, or other more complicated instruments), but most beginners will be satisfied.
Spreads on the JM Financial platform are low, but keep in mind there is a commission attached. The spread on EUR/USD ranges between 0.3 and 0.4 pips in the most liquid session, which means the total cost per trade would amount to 1.4-1.5 pips. This is in line with industry averages, although it is by no means amazing. Having a Platinum account would lower the costs slightly of course.
The maximum leverage offered is 1:200, although it varies a lot on a per pair basis.
4. Trading platform
JM Financial offers the well known MetaTrader4 platform to its clients. If you are more experienced you may already have an opinion on the platform, as it is an industry standard, offered by many brokers. Some traders like it, for its simplicity and ease with which it runs automated systems (Expert Advisors), while others dislike the lack of multiple-monitor capabilities.
Different app versions and the MT4 web interface are also supported of course, giving traders the option to check their positions on the go. The platform is perfectly suitable for the instruments provided by the broker.
5. How is the support?
JM Financial offers live chat support, e-mail and phone support. At the time of our review chat support was functional with a rather quick response. We had to ask them about some of the information required for this review, as it was not mentioned anywhere on the website. For instance – currently you can only deposit and withdraw via Bank Transfer.
JM Financial is a Kuwait based forex broker, which seems to be focused on the Middle East market. We would not recommend trading with JM financial due to the lack of regulation – being registered with the Ministry of Commerce is not the equivalent of being supervised by a financial watchdog. Their trading conditions seem in-line with expectations, although you may be able to find better ones.