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MGL Forex Review - is it scam or safe?

MGL Forex Review - Is mglforex.mn scam or good forex broker?

RATING: 1.9 / 1 REVIEWS ForexBrokerz MGL Forex
MGL Forex is an offshore broker. Your money is not safe.

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MGL Forex is a Mongolian forex and CFD broker, offering three different account types on the MetaTrader4 platform with a diverse choice of trading instruments, including crypto currencies and futures. If you are considering trading with them be sure to read this review first.

 

Account type Min. deposit Max. leverage Spreads
Standard Account $50 1:200 1,1 flexible
Pro Account $5000 1:200 n/a
Institutional Account n/a n/a n/a

 

MGL Forex Advantages:

 

Diverse account types

  

MGL Forex offers a commission free Standard Account, a STP (straight-through process) Pro Account, with 7 USD commission for the forex and spot metal CFDs and 3 USD for all other CFDs including oil and finally we have the Institutional Account, for which you can negotiate your trading conditions with the broker. The minimum trading size for the Standard and the Pro Account is 0,01 lot or 1000 base currency units, but for the Pro Account you have a minimum monthly trading volume of 20 million USD. 

 

Competitive spreads

 

Spreads with the Standard Account are advertised to start form 1,1 pips, while with the Pro Account they should be lower, but you have to calculate in the 7 USD commission per lot for your forex and spot metal trade and the 3 USD for all other CFDs, including oil. A commission of 7 USD per standard lot equals 0,7 pips increase of the spread, while a commission of 3 USD equals 0,3 pips.

 

When tested with a Demo account the EURUSD spread was between 1,1 and 1,2 pips and no commission was taken for the trade. The offered spreads are well in line with what traders usually expect with a basic account, given that the Demo account mirrors the trading conditions of the Standard account. And while spreads between 1 pip and 1,5 pips are considered good for a standard account, still you may want to check our list with brokers offering even tighter spreads:

 

>> Lowest spread forex brokers<<

 

Various trading instruments, including CFDs on crypto currencies and stocks

 

MGL Forex offers 54 forex pairs, including Danish Krone, Hungarian Forint, Mexican Peso, Norwegian Krone, Polish Zloti, Swedish Krone, Turkish Lira, South African Rand, Singapore Dollar,  Chinese Yuan, Hong Kong Dollar and Russian Rubla. Along the currency pairs you can trade also CFDs on spot metals, stocks, oil and crypto currencies - Bitcoin, Ethereum, Lite Coin and Ripple - as well as futures contracts on indices, oil and copper.

 

Relatively low minimum deposit requirement for the Standard Account

 

With MGL Forex you can open a Standard account with just 50 USD, which is in line with the best practice on the market. To open a Pro Account however, you will have to invest at least 5000 USD. Here we should note that there are brokers like FXTM and XM with which you can open an account with just 5 USD.

 

Reasonable maximum leverage

 

The maximum leverage offered by MGL Forex for the Standard and the Pro accounts is 1:200, which is more or less enough to fit all trading styles. Still you may want to check our list with brokers, offering maximum leverage of up to 1:500 and above. Do not forget however that higher leverage means higher risk.

 

>> Brokers offering at least 1:500 in leverage <<

 

MetaTrader4 available

 

Another plus for MGL Forex is that they offer the MetaTrader4, which is definitely the most popular trading platform around the world. It includes a built-in editor and compiler with access to a user contributed free library of software, articles and help and utilizes a proprietary scripting language, MQL4/MQL5, which allows traders to develop Expert Advisors, custom indicators and scripts. MetaTrader's popularity largely stems from its support of algorithmic trading. Here you can check our list of brokers, which also provide the MT4 platform:

 

>>Find other MT4 brokers here<<

 

MGL Forex Disadvantages:

 

No regulation

 

MGL Forex is based and registered in Mongolia. Оn its website тhe broker does not mention if it is regulated in any way and that is clearly a set back. We have tried to check the company in the register of the Mongolian Financial Regulatory Commission, but we were not able to find it there.

 

Unregulated brokers are not legally bound by any fiscal or ethical rules. 

 

On the other hand brokers licensed by one of the well established international regulators have to abide by a strict code of conduct. 

 

Brokers, regulated by the CySEC in Cyprus, the Financial Conduct Authority (FCA) in the UK or the Australian Securities and Investment Commission (ASIC) have to maintain at all times a minimum operational capital, as well as to keep their clients capital in a segregated account. 

 

FCA and CySEC also force their brokers to participate in clients money insurance schemes, under which traders can receive part of their capital back in case the broker goes insolvent. Under the scheme FCA brokers can be compensated with up to 50 000 GBP, while CySEC brokers can receive back up to 20 000 EUR. Here you can check our list of FCA regulated brokers:

 

>>Find FCA regulated Brokers here<<

 

Scarce information about the payment methods

 

On its website MGL Forex mentions as a payment method only bank wire transfer and that might prove inconvenient for many traders. Most brokers offer a wide variety of payment methods, including credit or debit cards and e-wallets, such as PayPal, Skrill and Neteller. Here you can check our list of brokers offering Skrill as a payment method:

 

>>Skrill Forex brokers<<

 

Conclusion

 

MGL Forex is Mongolian broker that offers relatively tight spreads and has a reasonable minimum deposit requirement for opening a standard account. And although for the Mongolian market the broker might seem legit, the fact that it is not regulated by a respected international financial authority is clearly a setback.

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Traders` reviews for MGL Forex

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