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 scalpers first and foremost.
This detailed MyFx Markets review provides an accurate picture of what you can expect from this broker and its crypto CFDs.
In addition to that, we have also put together a guide on how to actually trade MyFx Markets’ crypto CFDs.
What is MyFx Markets?
MyFx Markets is a brokerage dealing in FX and CFDs, covering a rather impressive range of tradable assets. Among these assets – at least as far as we are concerned – cryptocurrencies take up a prominent spot.
The operation was launched in 2013, and it was initially based in New Zealand. It later moved to the Republic of Mauritius.
As far as the reputation of the brokerage goes, not much information is available. One will encounter a couple of trader complaints regarding some withdrawal issues, but that is about it.
While its current regulatory position is not exactly impressive, MyFx Markets’ record is a clean one. At no point in time was the brokerage blacklisted by any regulatory entity anywhere in the world.
It also has to be noted however that it’s trading volumes and overall activity has not attracted much attention, to begin with.
TheBenefits of MyFx Markets
- The broker supports EAs. Since cryptocurrency 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. Cryptocurrencies offer plenty of opportunities in this regard. Do understand however that EAs are rather limited in what they can accomplish profits-wise on their own. They require your constant attention and input. This is doubly true for the crypto market, where massive swings happen literally within minutes.
- 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.
- 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.
- The company behind the MyFx Markets brand is a registered financial service company.
Who is MyFx Markets?
The corporate side of the MyFx Markets brokerage is represented by a company called Milson’s Fintech. The company is registered with the local authorities as a Category 1 Global Business operation. Its registration number is C118023066.
Milson’s Fintech is apparently licensed and regulated by the FSC (Financial Services Commission) of the Republic of Mauritius.
Apparently, the address of the operation is Level 2 Maxcity, Building, Remy Ollier Street, Port Louis.
According to opencorporates.com, the company was incorporated on May 3, 2018.
While no entity (including the FSC website and the official MyFx Markets site) provides any sort of details on Milsons Fintech, a Google search will reveal a company by the same name registered in the UK.
Incorporated on August 10, 2018 and registered as an information technology consultant, Milsons Fintech Ltd. may be the UK-based bridgehead of the brokerage.
The UK company number of this corporate entity is 11510891. Its registered address is 20-22 Wenlock Road, London, England, N1 7GU.
The personnel file of the company lists two directors: Jie Bai and Jason William Gibson. The address of the former is 3/1, Boronia Street, Wollstonecraft, NSW 2065, Australia. His is nationality is listed as Chinese.
The information does indeed seem to add up.
Exactly where the broker can legally peddle its services based on its Mauritius license is unclear.
As mentioned, the focus of the operation seems to be on Australia (where one of its directors is apparently based). To legally operate there however, MyFx Markets would need an ASIC license.
The US and the EU are likewise jurisdictions where the legal status of the operation is unclear.
MyFx Markets’ website only focuses on Europe, Asia, and Africa. It is, therefore, safe to assume that US traders are not accepted.
Things to Consider
- Despite the fact that the broker lists cryptocurrencies separately from the other CFDs at its website, they can indeed only be traded through CFDs.
- 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 not the least bit generous in regards to providing information on its inner workings. While it does not state it anywhere, it may in fact act as a market maker for these CFDs. In this case, you would effectively trade against the broker.
- According to its regulatory obligations, the broker keeps trader monies in segregated bank accounts. That said, it bears pointing out that Mauritius’ regulatory environment is a rather lax one. It does not require operators to submit detailed reports on all the trades they execute, for instance.
- As mentioned, US traders cannot make use of the services provided by MyFx Markets.
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.
That obviously does not apply to crypto CFDs. Leverages of 1:2 are much more common for that asset-class.
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.
CFD-based trades do not incur any costs. The broker uses the spread to scoop up its share of the action. On MyFx Markets you can trade Bitcoin, Bitcoin Cash, Litecoin, Ethereum or XRP CFDs.
Crypto CFD Risks
That said, the existence of the spread is one of the major drawbacks of crypto CFDs. Traders pay spreads on every entry and exit, cutting into their profitability. This saps a lot of value out of scalping and short-term trading.
Furthermore, holding CFDs over longer time frames is not viable. Each day a trader holds a long position, he/she incurs additional rollover costs.
CFD trading is not strictly regulated. When using such a product, the trader always relies on the broker’s credibility and integrity. This is obviously another major risk.
MyFx Markets’ reputation is great among traders however, so in this instance, this risk factor does not exist.
Due to their very nature, CFDs are always speculative. Crypto purists may therefore not like them…
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.
As mentioned, the broker keeps its clients’ funds in a segregated bank account. The regulatory coverage of the operation is very “light-touch” however.
MyFx Markets is a very attractive destination for crypto CFD traders. It is a no-nonsense operation, featuring a solid trading platform and a decent selection of tradable crypto assets.
Due to its regulatory standing, it can even offer promotions, like a New Year’s bonus and a Referral Bonus.