MyFX Markets is a global Forex broker that is based in Sydney, Australia. They also have offices in London and Dubai. They give their traders the ability to trade over 53 different currency pairs with leverage of up to 400:1.
When it comes to their cryptocurrency assets, MyFx Markets features some 5 cryptocurrency CFDs, based on BTC, BCH, LTC, ETH and XRP. With that, it covers the cream of the crop of the cryptocurrency industry. As a result, it definitely is a potential destination for crypto traders looking to cash in on the extreme volatility of the asset class.
Known for its EA-friendly nature, the broker is popular with crypto & forex scalpers first and foremost. They are also well known for their highly personal customer support function.
This detailed MyFx Markets review provides an accurate picture of what you can expect from this broker and its entire product offering.
In addition to that, we have also put together a guide on how to actually trade MyFx Markets. I will also give you some top tips that you need to consider when trading here.
What is MyFx Markets?
MyFx Markets is a brokerage dealing in FX and CFDs, covering a rather impressive range of tradable assets. These include a plethora of forex pairs, commodities, Indices and of course cryptocurrencies.
The operation was launched in 2013, and it was initially based in New Zealand. It later moved to Australia but has a regulatory licence in St Vincent and The Grenadines and in the UK through the FCA.
As far as the reputation of the brokerage goes, it appears to be pretty clean. There are no serious complaints on the numerous online forums that we frequent. They are also very transparent with their operations and have a dedicated phone line that one can call on a moment’s notice.
MyFX Markets is also an ECN broker. This means that they do not trade against their clients and they route all their orders through their network of liquidity providers. These include banks such as CitiBank, Goldman Sachs etc.
The Benefits of MyFx Markets
- The broker supports EAs. Since cryptocurrency & Forex scalping is so popular, it is safe to say this may just be a match made in heaven. EAs and auto traders, in general, are at their best when trading short-term, strong trends. They will trade the markets for you even if you are away from your desk. Many traders choose to set these EAs up on a VPS that they can then run 24/7.
- MyFx Markets boasts superb liquidity from the world’s top banking institutions and liquidity providers. These providers include JPMorganChase, Nomura, MorganStanley, Citibank and Bank of America, among others.
- For trade execution, MyFX Markets utilises the best enterprise grade hardware that is located in advanced data centres both in New York and Tokyo.
- Traders who hold balances in AUD at the broker earn interest on it. This makes it clear that the brokerage has maintained its Australian focus.
- The broker offers access to 24-hour support as well as to dedicated account managers. These account managers are available at a moment’s notice
- The company behind the MyFx Markets brand is a registered financial service company. This means that they will have been verified by the regulatory authorities and met a number of minimal criteria.
Who is MyFx Markets?
The corporate side of the MyFx Markets brokerage is represented by a company called AXIS INC. The company is registered with the local authorities as a Category 1 Global Business operation. Its registration number is 24078IBC2017.
AXIS INC is licensed and regulated by the Financial Services Authority of St Vincent.
The address for MyFX Markets is prominently listed on their website in the contact us section. It is located on the first floor of First St Vincent Bank Ltd Building James Street, Kingstown ST. You can also call them on the number listed for their operation which is +64 9 889 4022.
So, what does an FSA Licence mean for MyFX Markets?
Well, it means that the broker was required to meet a number of minimum criteria before it could begin operating. These include the following:
- Minimum capital requirements: The broker has to hold a certain minimal capital in a segregated bank account which will operate as a buffer against any unforeseen market moves.
- Background Checks: Both the company (AXIS Inc) and the directors will have had to have undergone background checks to make sure that everything was above board.
- Regular Reporting: It’s not just a matter of the company getting the licence. It has to be renewed on a yearly basis and they have to meet these same minimum criteria to maintain their license.
Given that AXIS Inc has got the FSA licence, it has met this minimum criteria. Apart from the comfort of knowing this, you also have the benefit of someone to turn to should you feel hard done by the broker. The FSA takes feedback from traders into account when they decide to renew the licence.
When it comes to coverage, the FSA licence allows MyFX Markets to take traders from a number of different jurisdictions. These include places such as Europe, the Middle East, Africa and the Asia Pacific region.
However, there are some regions where traders are not accepted and one of these is the United States.
Things to Consider
- When you are trading cryptocurrencies at MyFX markets, you are trading a CFD. A Contract For Difference is a derivative product that obtains its value from the movement in the price of the underlying asset.
- No, you will not be able to pick up any coins from the broker. When trading a CFD, you only trade a contract based on the price of a certain coin. More precisely, you trade the difference between the entry and exit value of your contract.
- CFDs are leveraged financial derivatives and as such, they carry certain advantages and risks. You have to be fully aware what these risks and advantages are. More on it below.
- MyFX Markets is an ECN broker. ECN stands for “Electronic Crossing Network” and this means that they will route your orders through to a liquidity provider. This is unlike an STP broker that will trade against you as the market maker.
- According to its regulatory obligations, the broker keeps trader monies in segregated bank accounts. What this means is that your funds are kept in a bank account that is seperate from those that the broker uses for its day-to-day operations. This means that in the event that MyFX Markets were to go under, the funds from the clients will never be impacted. They will remain secure from creditors.
- As mentioned, US traders cannot make use of the services provided by MyFx Markets. There are also a few other countries that are restricted. We encourage you to read their Legal disclaimer
CFD-based Crypto Trading
CFDs offer a number of advantages over actually gaining ownership of the traded asset. Purchasing cryptos is still a bit of an acrobatic financial exercise these days. It should not be that, but it certainly is.
Buying and holding (HODLing) cryptos could be one of the more inefficient ways to gain exposure to these markets.
CFDs offer exposure to this interesting asset class, without the hassle that comes with ownership. With CFDs, you can make money in bear markets. You can actually scalp short-term downtrends the same way you do up-trends. Please note that EAs are not ideal for this purpose.
CFDs offer leverage. Leverage on crypto CFDs may not be as generous as it is on other assets, but there is some of it available. At MyFx Markets, the maximum leverage is 1:400 on popular FX pairs. This basically means that your trading position is magnified by over 400 times.
This 1:400 leverage is more than I have seen at other brokers. That obviously does not apply to crypto CFDs which have a max leverage of 1:5. This is because crypto CFDs have that much more volatility and are hence harder to manage the risk on the broker side.
CFD trading is not bound by minimum capital requirements, or by daily limits on trade numbers. At MyFx Markets, traders can open an account for $200. That is certainly more than affordable for all comers.
When you are trading CFDs at MyFX Markets you will be charged based on the spread of the asset in question. They will add a small spread onto the price that is being brought onto their books by the liquidity provider. This spread will depend on the asset in question but it starts at about 0.1 pips.
On MyFx Markets you can trade Bitcoin, Bitcoin Cash, Litecoin, Ethereum or XRP CFDs.
Crypto CFD Risks
Of course, there are also risks that come with trading CFDs. Perhaps the most relevant of these is the fact that the leverage can also maximize your losses. If you are not careful and protect your position with Stop losses then you can wipe out your capital.
This is particularly true for cryptocurrencies which are such a volatile instrument. Sometimes the asset will gap out of nowhere overnight and you will have received numerous margin calls.
So, how do you reduce this risk?
Well, perhaps your best way to limit the risk that you face with CFDs of any kind is to use adequate stop losses. These are orders that you can place when opening a position which will limit your losses should the asset move against you.
You will want to make sure that these positions are well placed so as not to trigger from minor movements but also to stop any losses that could deteriorate your capital.
However, perhaps your best bet in order to limit your losses from CFD trading is to limit your risk with lower leverage. There is no reason that you have to enter a position with 400x leverage. You can start with lower leverage limits and ease your way into it.
How to Open a MyFx Markets Account?
Before you decide to make the move, you need to know what account type fits your needs best. As far as the trading platform is concerned, the broker only supports MT4. Your choice is easy in that regard.
There is a Multi-Account Management option offered. Rank and file traders probably do not care about this option. Those looking to use EAs on multiple MT4 accounts will, however, appreciate it.
You can download MT4 for free from the website of the broker.
MyFx Markets Account Types
The broker supports two account types: a Standard Account and a Pro one.
Of these, the Standard one is obviously the cheaper. It requires a minimum deposit of just $200.
Those who opt for this account type get average spreads of 1.5 pips. The maximum leverage is 1:400. Obviously, the best trading conditions are only valid for Fx pairs. Cryptos incur wider spreads and lower leverage.
The Pro Account requires a minimum deposit of $1,000. For that money, traders get spreads of just 0.5 pips. A commission of $7/lot round trip is charged however.
While the Pro account is more expensive than the Standard one, for serious traders it is always the better option.
Before signing up for a real money account, you might want to use the free Demo option to get a taste of what it is like to trade with MyFx Markets.
The sign-up process is extremely simple. All you really have to do is to provide a few personal details (like an email address and a phone number) and you are ready to download the platform.
Once installed, just run MT4. In the upper left corner, select File and then Open an Account.
Select the Demo server, and tick the newsletter box to proceed. You can also set the amount of virtual money for your Demo balance.
Once done, you are ready to trade away in Demo mode.
If you want to make a real money deposit, just click the Open an Account button again and select a real money server. Also, click the New Real Money Account radio button.
You will have to enter your real money login details and you are ready to go.
To open a real money account, you need to go back to the MyFx Markets homepage.
The registration process you have to complete is slightly longer than the Demo account one. It is however surprisingly quick and reasonable. It does require quite a bit of sensitive information though.
How to Buy and Sell at MyFx Markets?
Being the most popular and most ubiquitous trading platform, MT4 makes trading very easy.
One click trading is available straight off the chart, but you can also use the New Order button in the toolbar to get a more detailed view of your position. This is where you can set your order type, together with your SL and TP.
It has to be pointed out that the Demo Account does not offer access to the crypto CFD selection. Only Fx pairs can be traded through it. That said, crypto CFD trading works in exactly the same manner.
MT4 features scores of preinstalled technical indicators as well as a mind-boggling number of perks. There is a live news stream, various signal services, EAs, custom scripts etc.
The charting capabilities of the platform are unquestionable.
MyFx Markets Customer Support
You can contact the MyFx Markets support staff through live chat and email. The email address is email@example.com. There is an email form available on the Contact page, as well as a couple of phone numbers.
These are Australian and New Zealand numbers: +61 2 8006 8299 and +64 9 889 4022 respectively.
When you create an account at MyFX Markets, you will also be given an account manager at the broker. The role of this agent is to help you with any questions or queries that you may have with the broker. Depending on the level of service that you signed up with, this agent should be available 24 /5.
As mentioned, the broker keeps its clients’ funds in a segregated bank account so this means that your funds will be protected no matter what happens with MyFX Markets. Even if they were to suffer from a bankruptcy of any kind, the segregated portion ensures that your funds are out of reach of the creditors.
Then of course you have that regulatory licence. Although the FSA in St Vincent is not as well known as the likes of the FCA in the UK or ASIC in Australia, it is still a decent regulation. Moreover, MyFX Markets has been able to maintain this licence so you know that they have met all of the minimum requirements.
You also have to consider that MyFX Markets has some pretty strong risk management protections. They use the most advanced hardware at some of the best known datacentres in the world. This ensures that they have the best uptime for their markets as well as effective execution.
Finally, from a data security perspective, all of their communications are encrypted. They have full SSL which means that your password, credit card and personal data cannot be snooped on by anyone.
Time to round up my MyFX Market review with a few final thoughts.
Firslty, I have to note that MyFX Markets is quite transparent when it comes to their operations. They have phone numbers as well as office locations which can be rare in the broker industry.
I also like the fact that they have 1:400 leverage. This is more than I have seen at other brokerages so it gives traders more opportunity to take advantage of FX price swings.
Then I have to be quite complimentary of their customer service component. They are one of the few brokers that still provide our own personal account manager.
Of course, there are a few drawbacks that I should mention.
Firstly, there are not that many cryptocurrency CFDs that you can trade here. You only have the top 5 cryptocurrencies which is quite limited.
Moreover, it would have been great to see more selection when it comes to their stock assets. If you wanted to trade equities then you are pretty limited as you can only trade indices.
Either way, MyFX Markets provides a pretty favourable trading environment. If you are going to be trading with CFDs, make sure that you practice adequate risk management.