MDF Forex Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this MDF Forex Review.
MDF Forex Review
MDF Forex offers four types of live trading accounts: Normal, Premium, VIP and Low Spread. There is also a free 30-day demo account for testing purposes. The broker also provides the MAM account option for money managers.
The broker’s portfolio includes over 40 forex pairs – major, minor and exotic. There are also CFDs on major global indices, spot metals and a few commodities.
MDF’s forex portfolio is comparable to that of other New Zealand brokers. Circle Markets, for example, offers 53 pairs. There are other brokers in the country like MahiFX who have a portfolio of over 100 pairs.
The broker also offers free VPS to clients with deposits of $1000 or more.
The Company. Security of Funds
Company Country Regulation
Market Direct Forex New Zealand FSPR
MDF Forex is a brand of the company Market Direct Forex, which is based in New Zealand. It is registered in the Financial Service Providers Register (FSPR) and should be regulated by the country’s Financial Markets Authority (FMA). The watchdog has a set of requirements for brokers, including to hold net tangible assets amounting to at least $1,000,000 and meet a set of standards for financial resources and professional indemnity insurance.
The company is also a member of the dispute resolution scheme Financial Services Complaints Limited. It provides independent and impartial dispute resolution service and is free to consumers. The members of the scheme include non-bank lenders and finance companies, credit unions, building societies, insurance companies, mortgage brokers, insurance brokers, financial advisers, trustees, fund managers, issuers of securities, transactional service providers, card issuers and many more.
Other brokers regulated in New Zealand are CMC Markets, Circle Markets, NoaFX, Land FX. Brokers regulated in other countries, like XM, accept clients from New Zealand.
Trading conditions
Minimum initial deposit
For some of its accounts MDF Forex has no requirement for a minimum initial deposit, while for the Premium and VIP accounts the sums are significant. Naturally, the no deposit requirement is nothing but a marketing gimmick for attracting clients, as are the very low requirements like the ones of IG with $1 or FXTM and XM with $5 or Grand Capital with $10. Realistically, such low sums do not go very far in forex trading, even with high leverage.
Spreads and commissions
The spreads offered by MDF Forex are within the industry average, even though we could not find specific information on the “Normal” account, which logically would attract the most retail traders. The demo account revealed that the spread on the most popular pair – EURUSD floats around 2 pips.
Leverage
MDF Forex offers a maximum leverage of 1:400, which is above the average for the standard, but not dangerously high. Circle Markets – another New Zealand broker – is offering up to 1:200, while FxPro offers 1:500. There are brokers like Grand Capital whose leverage can reach up to 1:2000.
Trading platforms
Not surprisingly, MDF Forex offers the most popular trading platform – MetaTrader 4 (MT4) in all its versions, except the web-based one.
The platform has been on the market for over 10 years and is preferred by brokers and traders alike for its ease of use, multiple options, various types of orders, charting and technical analysis tools and the wide selection third-party applications compatible with it. MT4 also allows automated trading with Expert Advisors and hedging.
Probably MT4’s popularity would eventually wane and it will be replaced by its successor MT5, but it looks like it will still be around for some time to come.
MT4 is offered by smaller and major brokers alike: IG, FXCM, FxPro, XM, TryMarkets, etc.
Methods of payment
MDF Forex accepts deposits through debit and credit cards, China Unionpay, wire trasnfer and the Wechat Pay service.
MDF Forex is based and regulated in New Zealand, which means that it is s fairly reliable forex broker. Judging by the language options on its site – Korean and Chinese – it is obviously targeting clients in the Chinese-speaking countries and South Korea. It seems that in Chinese the broker calls itself Mandianfu forex.
Overall, the broker’s trading conditions are average, except the minimum deposit requirements for Premium and VIP accounts, which are more comparable to those for institutional traders, rather than retail ones.
Instead of the forex broker you can use Plus500, XM, eToro, Fxpro or AvaTrade forex brokers.
MDF Forex Review Conclusion
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