MahiFX Review – Unbiased Pros & Cons Revealed

 

 

WHO IS MAHIFX?

According to research in South Africa MahiFX  was founded in 2010, and is a Forex market maker with offices in New Zealand and London.

They have skilled, knowledgeable people who are a dynamic team which is making them a multi-award winning broker plus they are enriching their clients’ lives.

MahiFX offers smart conditions for trading in a wide range of currency pairs and some precious metals through both its in-house web-based platform and the famous MT4. However, MahiFX does not offer CFDs and offers itself as a Market Maker.

SAFE OR SCAM?

One of the best benchmarks to measure the safety of a broker like Mahi FX, is to establish which regulating authorities are watchdogs over its actions.

MahiFX is regulated and authorized broker not only in New Zealand but also in the UK and Australia. Therefore, MahiFX holds three licenses from the FCA, ASIC and FMA.

 

PROS AND CONS

PROS	CONS
1.      Strong regulation	1.      Low maximum leverage
2.      Low Spreads	2.      No CFDs offered
3.      No deposit needed	3.      Inadequate payment methods
4.      Assortment of platforms offered	4.      Lack of educational tools for novice traders

 

LEVERAGE

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

For example, on a 1% margin a position of $1,000,000 will require a deposit of $10,000. The margin level in a trading account needs to be equal or more than 100% to be able to open new trades, otherwise your trading account will be fully hedged.

MahiFX offers a maximum leverage ratio of 1:100

 

ACCOUNTS

A forex account at MahiFX is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

MahiFX offers their clients one trading account type, a standard one. This account is commission-free and has no prerequisite for a minimum deposit, however you must have at least $1 in order to place a trade.

 

MARKET INSTRUMENTS

The most popular market instruments available from most brokers for trading include:

Forex

Forex trading describes the currency exchange market which refers to the global, decentralised marketplace where individuals, companies and financial institutions exchange currencies for one another at floating rates.

Commodities

Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and plays a major role in portfolio diversification and risk management.

Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.

Indices

Equity, or stock indices, are actual stock market indexes which measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies of a nation.

Precious metals

The trading of gold and other precious metals, along with crude oil, copper or petroleum, are hard commodities that play a major role in the commodities market and are contract-based tradable goods.

Energy

The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.

MahiFX offers the following of the above: Indices, Commodities, Stocks, Gold

 

FEES

Cost depends on different factors, like spread and margins, and MahiFX clients may also experience different fee structures according to their country or place of residence.

The spread of a currency pair is the difference between the bid and the ask rate. A pip represents the smallest increment that an exchange rate can move.

Margin is the amount of money required in your account in order to open a position. Margin is calculated based on the current price of the base currency against USD, the size (volume) of the position and the leverage applied to your trading account.

MahiFX does not charge clients any commissions. The transaction cost, which is how the broker earns its income, is through the spread. And as to what concerns spreads, MahiFX provides low variable spreads, the average ones on EUR/USD amount to 1.0 pips.

 

DEPOSIT AND WITHDRAWAL

Accounts usually requires a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done with the same ways, but sometimes differ.

In the case of MahiFX the following methods and minimum deposits are required: Deposits and withdrawals can only be done by credit or debit card or a bank wire.

 

TRADING PLATFORMS

The forex trading platform provided by Loyal Forex to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.

A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.

MahiFX provides MetaTrader 4 and Proprietary platform.

MetaTrader 4 platform is permitted through a MahiFX custom-built bridge. The technology links MahiFX’s award-winning trading engine to the MT4 platform, offering retail FX investors automated trading capabilities.

MahiFX also offers its own Proprietary platform with all the utensils necessary for Forex trading.

Trades can be placed as three diverse orders: market orders, limit orders and stop loss/take profit orders. Clients using this platform can select among several other options as well such as deciding the upper and lower limits of a trade.

 

HOW TO OPEN AN ACCOUNT

Similarly to a bank, to register a forex trading account with MahiFX for the first time, you will be required to go through a basic “know your customer” process.

This will allow MahiFX to ascertain that your submitted details and ensure the safety of your funds and account details.

 

CUSTOMER SUPPORT

Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.

In the case of MahiFX customers can reach the support team via their website by filling in a form, email and telephone to their New Zealand or their London office. MahiFX customer service is available 24 hours per day, five days per week.

 

EDUCATION

Before starting to trade, potential clients of MahiFX should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.

MahiFX offers an introduction video on their website. There is a lack of educational tools for novice traders.

However, they do offer a Trading Tips section which is a host of different features including segments on technical and fundamental analysis, support and resistance, risk management, forming a trading plan, placing trade orders, chart patterns, and leverage.

 

RESEARCH

To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they don’t lose money unnecessarily and trade as profitable as possible.

With MahiFX they have access to cutting edge technology. MFX Compass is for clients to form their own rate and manage their risk effectively. The MFX Echo gives real insight in real time for a trader and the MFX Vector gives a finely tuned algorithmic execution.

 

AWARDS

Being an awarded company instils extra confidence by traders.  MahiFX can show several awards accumulated during its years in business, including the following:

• The MahiFX trading platform was named the winner for 2013 Best Trading System at the 13th annual FStech Awards recognizing excellence and innovation in the field of information technology within the UK and EMEA financial services sector.
• MahiFX is also the winner of the UK Forex Award 2014.

 

CONCLUSION

MahiFX website is user-friendly and easy to navigate but does lack some information.  Their video is good and does introduce traders to MahiFX and trading.

They do offer technology solutions for their clients with their unique products.  They do have many advantages such as good costs and no deposit, but do lack enough tools for novice traders.

 

DISCLAIMER

MahiFX warns potential customers that Forex and CFDs trading always carries a high risk and may not be suitable for all investors.

Before deciding to trade with MahiFX, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

MahiFX warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable.

MahiFX cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with MahiFX?

You can trade several different instruments with MahiFX, which include the following:

• Indices
• Commodities
• Stocks
• Gold

Which platforms are supported by MahiFX?

MahiFX provides the following popular trading platforms:

• MetaTrader 4
• Proprietary platform

Does MahiFX offer leverage?

Yes, MahiFX offers a maximum leverage of 1: 00

What spreads can I expect with MahiFX?

MahiFX provides low variable spreads, the average ones on EUR/USD amount to 1.0 pips.

Does MahiFX charge commission?

No, more information on commissions can be obtained from the customer support service.

Is MahiFX regulated?

Yes, MahiFX is regulated by FCA, ASIC, FMA.

Is MahiFX a recommended forex trading broker for experts and beginners?

MahiFX offers a fair trading environment for mostly experienced traders.

What is the overall rating out of 10 for MahiFX?

8/10

 

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does MahiFX offer a demo account?

Yes

How long is the demo account valid?

The demo account can be used for 30 days.

Which live trading accounts does MahiFX offer?

• Standard Account

What are the available deposit currencies for a live trading account?

USD, EUR, GBP, JPY

 

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for MahiFX?

$ 1

How do you make a deposit and withdrawal with MahiFX?

MahiFX offers the following deposit and withdrawal methods:

• Credit Card
• Debit Card
• Bank Wire Transfer

Withdrawals can be done via:

• Credit Card
• Debit Card
• Bank Wire Transfer

Does MahiFX charge withdrawal fees?

No, but fees from other financial institutions may apply

How long does it take to make a withdrawal?

Depending on bank services it may take several days for the money to be available.

 

MAHIFX AT A GLANCE
Broker’s Name	MahiFX
Headquartered	New Zealand
Year Founded	2010
Regulating Authorities	FCA, ASIC, FMA
Countries not accepted for trade	US
Islamic Account (Swap Free)	No
Demo Account	Yes
Institutional Accounts	Yes
Managed Accounts	Yes
Maximum Leverage	1:100
Minimum Deposit	$1
Deposit Options	Credit/Debit Card, Wire Transfer
Withdrawal Options	Credit/Debit Card, Wire Transfer
Platform Types	MetaTrader 4, Proprietary platform
OS Compatibility	Mac, Web, iPhone, iPad
Tradable Assets	Indices, Commodities, Stocks, Gold
Languages supported on Website	English
Customer Support Languages	English
Customer Service Hours	24 /5