BMFN Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this BMFN Review.
BMFN stands for Boston Merchant Financial. This is a forex broker, which offers its services through a single account type. One of the more unique things about this broker is the vast number of different websites under its umbrella. Some of them may be Introducing Brokers, while others may simply be the same company targeting different language bases via different websites.
The Company. Security of Funds
Company Country Regulation
BMFN EAD Bulgaria FSC
BMFN Pty. Australia ASIC
BMFN’s legal situation is rather unusual. The company claims to be headquartered in Russia, while it has offices and regulation in other places. As a start they have a license with the Bulgarian Financial Supervision Commission, which is MiFID-compliant . Furthermore they are regulated by the Australian Securities and Investments Commission (ASIC).
Financial regulation is key when it comes to the safety of the funds you deposit with them. The Australian Securities and Investments Commission, which BMFN is regulate under, imposes strict rules on the companies under it oversees. One of them is the mandatory implementation of segregated accounts, a mechanism which forces brokers to separate company funds from the clients’ investments. In effect this prevents the most basic form of fraud – the firm simply stealing your money, or “borrowing” it for temporary expenses. Furthermore the Australian watchdog requires a company to have a minimum of AUD 1 mln in order to receive the license. This is done to ensure capital adequacy and long-term vision.
As we mentioned in the beginning of the review, BMFN operates lots of websites. On the other hand, there are some complaints about the company in popular online forums. The combination of these two factors leads us to believe it is possible there are multiple companies under this brand, with some of them operating legitimately, while others are shady. If you plan on opening an account with this broker, do verify who your counterparty will be exactly.
Minimum Initial Deposit
The minimum initial deposit at BMFN is $50. This is relatively lower than what most other brokers demand. That being said these minimum levels should only be a factor for newer, less experienced traders who are willing to feel what real money trading feels like.
When it comes to finding a middle ground between a demo trading and real solid trading, cent accounts often come to mind. They allow a small investment to appear as a serious balance, hence giving you the feeling of operating with a lot of capital (with smaller risk). The minimum deposit for such an account at FXTM is $5, which will be displayed at $500 in the trading platform.
Average spreads & Commissions
Spreads at BMFN are variable, with the broker targeting 1.4 pips. This is a relatively noble goal, although our testing revealed the spread on EUR/USD ranging between 1.5 and 1.7 pips in the early New York session, one of the most liquid times of the day. This offer is ever so slightly worse than current offerings by other brokers. If you want to check what these offers are, in real time, you can do so by clicking here.
BMFN offers a maximum leverage of 1:400. However this can only be attained after contacting the support team, while the default level is set at 1:200. Both levels are more than enough for a decent trading strategy.
You may be under a different impression, given the current offers by some brokers, but higher leverage ratios are not good for most traders. The effect of higher leverage is that you can take more (and/or bigger) positions with smaller capital in your trading account. This may sound great, if you happen to get on board a winning trade, but is definitely not the case when you are in a loosing streak.
BMFN offers two trading platforms to its clients – MetaTrader4(MT4), as well as their custom UniTrader. Lets start wit MT4, the world’s most popular currency trading platform. It has gained popularity due to the fact its developers allow relatively easy access to it, while some brokers prefer using a solid solution, instead of crating their own software. The platform’s status, combined with the relatively easy to learn programing language have led to the creation of many custom tools: from custom indicators, to automated trading systems and even external plugins. Furthermore there are mobile versions of the platform available for both Android and iOS.
When it comes to the other offering – UniTrader, we can say it feels very intuitive. This, of course, implies there aren’t that many unique solutions (not that the problem we are talking about is that complicated). The platform has multiple asset classes, listed in a view similar to MetaTrader’s. In almost feels like a mix between MT4 and SaxoBank’s desktop platform. Here is a screenshot from the company’s website:
Methods of Payment
BMFN offers lots of payment methods. They include Bank Transfer, Credit/Debit Cards, Skrill, CahsU, China Union Pay and presumably “more”, according to the company’s website.
BMFN (of Boston Merchant Financial) is a forex broker, which is regulated under multiple agencies. The company is operating out of Russia, but strangely enough is not regulated by the local Central Bank. Even more unusual is the number of complaints posted on the forums given the company’s regulatory status. Trading conditions at BMFN are nothing special. The company offers its own proprietary platform, which allows trading CFDs on multiple asset classes. Overall, we have mixed feelings about this broker.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
BMFN Review Conclusion
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