Magic Compass Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this Magic Compass Review.
Magic Compass Review
Magic Compass offers its clients a single commission-free account with variable spreads, default leverage of 1:100 and micro tradeable lots.
Judging by the information on the trading conditions provided on its website, Magic Compass’ product portfolio is limited to less than 10 currency pairs, while most brokers offer more than 30 FX pairs and various CFDs.
The Company. Security of Funds
Magic Compass Ltd.
Although Magic Compass got its license back in April 2016, its website still seems unfinished and much relevant information is missing. This is a brand of Magic Compass Ltd.., a Cypriot Investment Firm (CIF), licensed by Cyprus Securities and Exchange Commission (CySEC).
CySEC requires Cyprus Investment Firms (CIFs) to hold at least €730,000, to keep customer funds in segregated accounts, separated from the company’s operating funds, and to report transactions on a regular basis.
Furthermore, all CySEC-regulated brokers are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR per client, if a regulated company is becomes insolvent.
Besides, every CIF is also MiFID-compliant and therefore entitled to offer cross-border services within the EU under the MiFID Passporting Regime.
Minimum Initial Deposit
We could not find information about the initial investment required by Magic Compass from its clients. Most brokers require $100 or $200 as a start. Yet, some Cyprus-based brokers require less. For instance, FXTM demands just $5 from its clients as a start.
Spreads & Commissions
Magic Compass offers floating spreads, averaged 1.1 pips on EUR/USD, which is a good pricing. By comparison, FXTM’s average spreads on ECN accounts amount to 0.5 pips on EUR/USD and involve a commission $4 per standard lot (round-trip).
For further information, you may look up real-time spreads of more than 10 major brokers here.
The default leverage provided by Magic Compass is 1:100, while the maximum reaches 1:500. Although this is a high ratio, many Cyprus-based brokers offer similar leverage rates – for example, FXTM provides leverage up to 1:1000.
Like most brokers, Magic Compass has made MetaTrader4 (MT4) its trading platform of choice. Unfortunately, we could not open a demo account with this broker and test its services.
The MT4 is easy to use and yet professional software that is extremely popular in the forex industry. It offers numerous built-in technical indicators and tools, top notch charting package, wide range of Expert Advisors (EAs) and extensive back-testing options for them.
You may check out more brokers using the MT4 here.
Methods of Payment
Magic Compass offers its clients only bank wire transfer as a payment method.
Magic Compass is a well-regulated forex broker that offers competitive spreads on the standard MT4 platform. Yet, relevant information such as initial deposit required seem to be missing, and we could not open a demo account.
The Broker is not a safe forex broker, Instead you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
Magic Compass Review Conclusion
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