MBCFX stands for Multiple Banks Clearing, which is a mix of big words and supposedly a forex broker. A big portion of their website (including the account opening form) is not working properly, which leads us to believe the entire broker may not be. On the other hand this may simply be a temporary technical issue.
The Company. Security of Funds
Company Country Regulation
MBC Financial Services Ltd. British Virgin Islands N/A
The company behind MBCFX is MBC Financial Services Ltd., which is registered on the British Virgin Islands. This broker does nor claim affiliation with any financial regulatory agency. Generally, this is such a big issue for us, that we would not recommend dealing with the company in any way – off-shore registration and a lack of oversight is a deadly combination.
As we mention in all of our reviews, financial regulation is a key part of a broker’s identity. Depending on the company’s place of registration, forex brokers may be required to register with a certain government entity, known as a financial regulator. These institutions have the power to create and enforce rule, with the aim to provide a better market environment, better competition and to protect client’s interests. for instance in the United Kingdom the Financial Conduct Authority (FCA) is the watchdog. The agency has created multiple rules for forex brokers. One of them is the mandatory implementation of segregated accounts – basically client’s funds are kept separate from the company’s. This prevents the “accidental” spending of trader’s free money on company expenses. Another very significant ruling, enforced by the FCA, is the participation in the local compensation scheme. This is a mechanism, which guarantees trading accounts against the unlikely event of a forex broker going bankrupt. If you trade with an FCA-regulated broker, which happens to go under, your account balance with them would be covered, up to £50,000.
Despite the problems with their website and the lack of regulation, MBCFX claims to have offices in Tunisia, Egypt and Saudi Arabia. We can’t confirm, nor deny this.
Not much is known about the trading conditions at MBCFX. Again, we are not certain if the broker is even functional at this point in time. We will list what we do and do not know here:
Minimum Initial Deposit
No information on the minimum initial deposit at MBCFX is available. Other brokers use this, as an advertisement – “you can open a cent account with FXTM for as low as $5” – for instance.
Keep in mind, the minimum deposit is not a factor you should consider highly, when comparing forex brokers. That being said, it is useful to deposit as little as possible if you are only looking to test a company’s service.
Average spreads & Commissions
Spreads at MBCFX are fixed and start from 2 pips. This is at the high end of the current offers by other fixed spread brokers. As an example easyMarkets has a 1 pip fixed spread on EUR/USD, available to clients who deposit more than $250.
On the other hand floating spreads are often tighter than fixed ones. Feel free to check the real-time spread comparison, which we have set-up here.
No information regarding the leverage is provided by MBCFX. At this point in the industry’s development lots of brokers offer 1:500 or even more.
That being the case, you should know that higher leverage ratios are a double-edged sword. They can vastly amplify your profits, but the same goes for your loses. Be sure to fully understand the risks involved in forex and CFD trading, before participating in it.
MBCFX offers three trading platforms: the ever popular MetaTrader4(MT4), their own MBCFX CFD PRO and Currenex. Sadly, at the time of writing of this review, we couldn’t access any of them (as well as lots of other crucial information). We will give a brief overview of the platforms in general:
MetaTrader4 is a popular choice, among forex brokers. This is the world’s leading forex trading platform, by far. It feels easy enough for a new trader to learn, yet the charts are so good, experienced technical analysts love them. Furthermore the platform provides lots of user-created tools to be applied to it. The combination of a simple programing language and the number of traders using MT4 has logically led to an explosion in the number of newly developed technical indicators and automated trading robots. Other than that, the platform has mobile apps available on both major stores.
When it comes to MBCFX CFD PRO, we can’t give an informed opinion, as we have simply never seen the platform. Again, we may just be unlucky with our timing, but the MBCFX’s website has technical issues.
The third platform offered by this broker is Currenex This is a choice for the more experienced trader, as it provides access to the level2 order book of your liquidity provider. Whether or not this is a viable analytical approach for the decentralized forex market is another story. Furthermore it has a bit more complicated order placing algorithms and position sizing options. Some traders will love it, some will hate it. What surprises us, is that it is being offered by a broker, offering fixed spreads. This would indicate they are fixed only for the MT4 service.
Methods of Payment
The payment options at MBCFX are limited to the more traditional Bank Transfer and Credit/Debit Cards.This leaves out users of e-wallets, such as PayPal.
MBCFX (Multiple Bank Clearing FX) is supposedly a forex broker, registered on the British Virgin Islands. The company is not under any financial oversight. On the other hand, trading conditions are nothing special – spreads are fixed and at the high end of the current industry averages. Furthermore, a solid portion of the company’s website was down at the time of writing of this review, including the account creation page. This may be a temporary technical issue, or a sign of bigger trouble.
MBCFX Review Conclusion
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