Beware! MSG Forex is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
MSG Forex is an offshore broker targeting Chinese-speaking clients. In preparing this review, we found a conspicuous lack of information regarding the terms offered by this website. If you are going to put your money on the line, it would be advisable to choose a more established investment intermediary.
MSG Forex Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.
Behind this broker is the company Master Select Group Limited based in the offshore zone of Vanuatu. Companies registered there do not have to meet any significant regulatory requirements.
If you have decided to invest in financial instruments, and especially if you are a novice trader, you should use the services of a licensed broker based in a jurisdiction with strong regulations.
Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds. In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK.
However, the likelihood of such a bankruptcy is low because regulators also have significant net capital requirements that companies must maintain – EUR 730 000 in UK and Cyprus, AUD 1000 000 in Australia and at least 20 million USD in the United States.
MSG Forex Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|MSG Forex||30+ indicators||✅||✅||❌|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
MSG Forex offers the popular Metatrader 4 (MT4) trading platform. At this point, most brokers use the newer version of the software, MetaTrader 5 (MT5).
These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
MSG Forex Trading instruments
MSG Forex offers trading in instruments of all asset classes – forex, commodities, equities, indices and cryptocurrencies. But this broker provides almost no information on the terms of this trade.
Established forex brokers offer a variety of trading account types tailored to the needs of clients with different capital and investment intentions. These brokers also provide clear and detailed information on trading parameters – leverage, spread, commissions, order execution method, etc.
MSG Forex Spreads and cost of trading
MSG Forex advertises an extremely low cost of trade, but in the MT4 platform we see the exact opposite – a spread of 2.2 pips, which is double the industry average. It is also unclear whether MSG Forex charges additional commissions.
MSG Forex Maximum leverage
|MSG Forex||Not specified||Not specified||Not specified||Not specified||Not specified|
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
We find no clear information on maximum leverage. Offshore brokers typically offer risky high levels of leverage that are not allowed to regulated companies.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
MSG Forex Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Bank wire||2-5 business days||2-5 business days||$25+|
|Credit card||Instant||24 hours||Not specified|
|Crypto||24 hours||24 hours||Fee depends on crypto|
The broker advertises that it allows deposits via cryptocurrencies, bank transactions and credit cards. However, we cannot confirm this because the dashboard is only available for verified accounts.
MSG Forex Minimum deposit
It will undoubtedly be a better choice to use the services of an established brand. Leading brokers offer Micro accounts with a very low initial deposit.
MSG Forex Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|MSG Forex||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
MSG Forex also does not provide basic information such as withdrawal fees and requirements. This is another reason to be suspicious of this broker.