MagnumFX Review 2023: Is This Broker Worth My Time?

MagnumFX is a trading brand for the company Magnum FX Ltd. They offer to trade on both forex and also CFDs. The broker is Cyprus-based, and they have registered with CySEC, the financial regulator there. The company operates a second broker as well, ETFinance. Magnum FX Ltd and its brokers have run into some serious trouble with regulators.

FCA Takes UnheardOf Action Against MagnumFX

The most significant finding of our MagnumFX review is their ban from the FCA. Magnum FX Ltd was one of four companies that lost their passporting rights to offer services to UK residents on June 1st, 2020. The FCA banned the companies due to their use of fake celebrity endorsements to advertise their services and other CFD trading issues. This was just the first step for the FCA, banning many more Cyprus-based CFD brokers after MagnumFX and ETFinance.

CySEC Follows Up With Temporary Suspension

While banned in the UK, the broker would have still been able to offer their services elsewhere. This would have been the case if CySEC didn’t initiate a temporary suspension for MagnumFX after evaluating the issues that the FCA had raised. Along with the other UK-banned brokers, MagnumFXcould not take on new clients or advertise any of their services for the month of the suspension.

Trading With MagnumFX

The broker has over 50 currency pairs to trade. Their CFD offerings are less symmetrical than most similar brokers, with only a few cryptocurrency and commodities available but over 150 indices and stocks to choose from. Their spreads are higher than most traders would want, with the EUR/USD spread sitting about 2 pips. While this doesn’t mean that some of their spreads could be better, this pair generally predicts how the overall offerings stand.

Trading Platform and Conditions

Trading with this broker is through the standard MetaTrader 4 platform. Most traders already know about its suite of advanced trading features and charting tools. There’s a seven-day demo account for traders to try them out before putting down the $250 minimum deposit. A lot of their former clients claim that their representativesare very aggressive and try to get new traders to put down much more than the minimum requirement.

Start Your Chargeback Today

Brokers can engage in dishonest advertising for a long time before a regulator takes action. Those who trade with them at that time stand to lose a lot of money. If you’ve lost your deposit with a dishonest broker and feel you deserve a refund, contact us today to evaluate your chargeback options.