Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
MagnumFX is new forex and CFD broker that has obtained their license form the Cyprus Securities and Exchange Commission (CySEC) in early June. Their web site is not yet fully operational but services are expected to be launched soon.
MagnumFX trading conditions
As we noted, the MagnumFX platform is not yet open for traders, so we are not able to access their trading conditions. However, as soon as the service is launched, we will revisit their website and will update our review.
Just for the record, in the beginning of August the European Securities and Markets Authority (ESMA) caped the maximum leverage allowed with forex transactions on the European market at 30:1, in an effort to reduce investment risks. As MagnumFX is regulated by CySEC in Cyprus, they will have to abide by this new rule, although higher leverage might be available for professional traders.
As far as spreads are concerned, we should note that starting spreads are considered attractive below 1,5 pips.
MagnumFX trading platforms
There are various trading platforms on the market and yet the most popular is probably the MetaTrader4, which has both a web based and a downloadable version. The platform is light and intuitive, with user friendly interface, excellent charting package and the option to run automated trading sessions.
MagnumFX regulation & safety of funds
As we already mentioned MagnumFX has a license by the Cyprus Securities and Exchange Commission (CySEC) – one of the most reliable and popular regulators in the industry, along with he Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC).
MagnumFX is owned and operated by Magnum FX (Cyprus) Ltd, which also operates another brand name – ETFinance.
According to their license, the company may provide investment services, including reception and transmission of orders in relation to one or more financial instruments and execution of orders on behalf of clients.
MagnumFX is also a member of the Investor Compensation Fund for Customers of Cyprus Investment Firms – an insurance mechanism that guarantees traders up to 20 000 EUR of their capital in case their broker is unable to pay.
The regulatory regime, enforced by CySEC is strict and yet balanced, providing both security to traders and operational flexibility to brokers.
Among others, all CySEC regulated brokers have to file regular reports, to allow external audits, to maintain a minimum operational capital in the amount of 730 000 EUR and to keep all clients money in a segregated, protected form creditors account.
CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law.
MagnumFX deposit/withdrawal methods and fees
As we noted, MagnumFX is still not open for business and we are not sure what their minimum deposit requirement to open a trading account will be.
Still, have in mind that with most brokers you can start trading with about 250 USD or so, while payment methods usually include major credit and debit cards like VISA and MasterCard, bank wire and e-wallets like Neteller, Skrill and PayPal.