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Magic Compass Review - is it scam or safe?

Magic Compass Review - is magiccompass.com scam or good forex broker?

RATING: 2.2 / 0 REVIEWS Magic Compass
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Trading Accounts

 

Account type  Minimum deposit  Minimum trade size Maximum leverage Average Spreads
Standard Undisclosed 0.01 1:500 1.1 pips

 

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

 

Company

Country

Regulation

Magic Compass Ltd.

Cyprus

CySEC

 

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.

 

Trading Conditions

 

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.

 

Maximum Leverage

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.

 

Trading Platform

 

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.

 

Conclusion

 

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. To sum up the above, here are the advantages and drawbacks with regards to this broker:

                                            

Pros Cons
Well-regulated Incomplete information on website
Competitive spreads Limited product portfolio
MT4 available No demo accounts?
No commission fees  

Latest news about Magic Compass
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Traders` reviews for Magic Compass

Spread

Pros

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Slippage

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Cons

 

 

Requotes

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Cons

 

 

Price feed

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Cons

 

 

Platform

Pros

Cons

 

 

Deposit/Withdraw

Pros

Cons

 

 

Customer service

Pros

Cons

 

 

Summary

Pros

Cons

 

 

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