MF Global Review – Unbiased Pros & Cons Revealed

WHO IS MF GLOBAL?

According to research in South Africa MF Global is a forex and CFD broker headquartered in New York City in the United States.

The company, formerly known as Man financial was founded back in 2007 and rose to have a global client base and offices all over the world, including in Chicago, Dubai, Geneva, Hong Kong, London, Mumbai, New York, Paris, Singapore, Sydney, Taipei, Tokyo and Toronto.

Overall Rating

• 3.0/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 1000

Regulators

CSA

Trading Platform

MT4, TT, GL Trade, Bloomberg, Broker tech, eMidas

Crypto

No

Total Pairs

0

Islamic Account

No

Trading Fees

Low

Account Activation

24 Hours

SAFE OR SCAM?

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

MF Global is regulated by the CSA (Canadian Securities Administrators).

PROS AND CONS

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.

MF Global offers a maximum leverage ratio of 1:30.

ACCOUNTS

A forex account at MF Global 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.

MF Global offers the following types of accounts:

• MF Global Micro Account – this account type has a minimum deposit requirement of 1000 USD and variable spreads from 0-3pips, the maximum leverage is 1:30
• MF Global Mini Account – this account type has a minimum deposit requirement of 2500 USD and variable spreads from 0-3pip, the maximum leverage is 1:30

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.

MF Global offers the following of the above:

• Forex currencies
• Futures
• Commodities
• Stocks

FEES

Cost depends on different factors, like spread and margins, and MF Global 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.

MF Global offers variable spreads on majors, from 0-3 pips.

DEPOSIT AND WITHDRAWAL

Accounts usually require 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 MF Global the following methods and minimum deposits are required:

• Visa
• Mastercard
• Bank Transfer

TRADING PLATFORMS

The forex trading platform provided by MF Global 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.

MF Global provides a wide selection of platforms to trade with, they give access to global markets for interest rate products with secure online access to their private trading information.

Clients can also view and print their information and create spreadsheets and other customized downloads.

The following platforms are available to MF Global clients:

• MetaTrader4
• TT
• GL Trade
• Bloomberg and Broker tech
• eMidas

HOW TO OPEN AN ACCOUNT

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

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

With MF Global the process entails logging onto their website and starting the application process by filling out your basic personal information.

You will then be required to answer a few financial questions and submit documentation such as your ID to get started. It may take a few days for your account to go live, remember you can always start with the demo account provided.

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 MF Global customers can reach the support team via live chat, email and telephone, the consultants are available 24hours a day, seven days a week.

EDUCATION

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

MF Global offers educational material for both beginners and experienced traders, there are articles and videos available for perusal on their website.

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 MF Global they have access to products that range from intra-day analyses to longer-term trends, much is spent in this department.

AWARDS

Although MF Global is acclaimed by customers, there is no indication of awards won on its homepage.

CONCLUSION

MF Global can be described as a company that is a forerunner in execution and clearing services for derivative products and non-derivative foreign exchange, equities and fixed income products in the cash market.

Its client-base is wide, comprising hedge funds, corporations, financial institutions, asset managers, professional traders and individuals.

However, MF Global ran into some trouble in 2011 when the company was found to be involved in a significant number of repurchase agreements.

Many of these repo agreements were conducted off their balance sheet. Also, MF Global made an investment of $6.3 billion on its own behalf in bonds of some of Europe’s most indebted nations.

The failure of those, and of other repo positions, is what contributed to the colossal liquidity crisis at the firm.

MF Global experienced a meltdown of its financial condition, caused by improper transfers of over $891 million from customer accounts to a MF broker-dealer account to cover losses that were created by trading losses.

DISCLAIMER

MF Global 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 MF Global, 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.

MF Global 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.

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

Overall Rating

• 3.0/5

Read Review

OPEN AN ACCOUNT

Min Deposit

USD 1000

Regulators

CSA

Trading Platform

MT4, TT, GL Trade, Bloomberg, Broker tech, eMidas

Crypto

No

Total Pairs

0

Islamic Account

No

Trading Fees

Low

Account Activation

24 Hours

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with MF Global?

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

• Forex currencies
• Futures
• Commodities
• Stocks

Which platforms are supported by MF Global?

MF Global provides the following popular trading platforms:

• MetaTrader4
• TT
• GL Trade
• Bloomberg and Broker tech
• eMidas

Does MF Global offer leverage?

Yes, MF Global offers a maximum leverage of 1:30

What spreads can I expect with MF Global?

MF Global offers variable spreads from 0-3pips

If details on the website is not comprehensive, more information can be obtained from the customer support service.

Does MF Global charge commission?

Yes, more information on commissions can be obtained from the customer support service.

Is MF Global regulated?

Yes, MF Global is regulated by the CSA (Canadian Securities Administrators)

Is MF Global a recommended forex trading broker for experts and beginners?

MF Global offers a fair-trading environment for all types of traders/beginners/experienced traders.

What is the overall rating out of 10 for MF Global?

6/10

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 MF Global 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 MF Global offer?

• MF Global Micro Account
• MF Global Mini Account

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

USD, EUR, GBP

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for MF Global?

1000 USD

How do you make a deposit and withdrawal with MF Global?

MF Global offers the following deposit and withdrawal methods:

• Visa
• Mastercard
• Bank Transfer

Withdrawals can be done via:

• Visa
• Mastercard
• Bank Transfer

Does MF Global charge withdrawal fees?

No, but fees from financial institution 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.