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MGL Forex: A Review of Mongolia's Forex Broker

MGL Forex: A Review of Mongolia's Forex Broker

Introduction: Unraveling MGL Forex

MGL Forex, hailing from Mongolia, offers a maximum leverage ratio of 1:200. With a commission rate of 7 USD per lot for forex and spot metal trades, this Ulaanbaatar-based company doesn’t provide educational resources on its site and holds a modest rating of 5/10. Below, we take an in-depth look at MGL Forex, helping you gauge whether it's the right platform for your trading endeavors.

Overview: A Snapshot of MGL Forex

Situated in Mongolia's capital city, Ulaanbaatar, MGL Forex has been a noteworthy player in the forex trading industry since its inception in 2016. With headquarters in khoroo, in the chingeltei district, MGL Forex has successfully diversified its trading instruments, and competitive spreads have fueled its growth.

By initiating a crowdfunding project in 2018, MGL Forex developed an all-in-one platform and expanded into the realm of cryptocurrencies. By year's end, the company had made its mark on global markets.

Account Types: Tailoring Options for Traders

📍 MGL Forex offers three distinct account choices, catering to varying skill levels: ➡️ Standard Account – Designed for new traders, requiring a minimum deposit of 50 USD, offering spreads ranging from 0.7pips to 0.3pips, and leveraging up to 1:200 ➡️ STP Pro Account – Targeted at experienced traders, this option demands a 5000 USD minimum deposit and offers maximum leverage up to 1:200 ➡️ Institutional Account – Intended for larger entities like banks or insurance companies, this isn’t a personal account.

Payment Process: Deposits and Withdrawals

Bank transfer remains the sole method for both depositing and withdrawing funds with MGL Forex. This uniform approach might limit flexibility for some traders.

Understanding MGL Forex Fees

A pip symbolizes the minimal fluctuation an exchange rate can exhibit. With MGL Forex, this is 0.01 for currency pairs with JPY and 0.0001 for all other pairs. Margin is calculated based on the current price, position size, and leverage.

Commissions vary among brokers and depend on various factors, such as services, accounts, and trades. Execution-only brokers charge less, leaving traders to manage their market navigation.

With MGL Forex, you'll incur a 7 USD commission fee per lot for forex and metal trades, and a 3 USD fee for other CFDs including oil.

Trading Instruments and Cautions

MGL Forex offers 54 forex currency pairs, CFDs on spot metals, Stocks, Oil, Cryptocurrencies, Indices, and Copper. The firm warns of the high risks involved in Forex and CFDs trading and advises traders to assess their financial situation and risk tolerance.

Leveraged accounts demand caution to sustain positions, as the use of excessive leverage can lead to significant losses or gains.

Educational Initiatives

Recently, MGL Forex has introduced a beginners' course on their website. This series of educational videos is designed to teach the basics of trading, and more advanced traders can sign up for in-depth learning.

Online Trading Risks

MGL Forex emphasizes that online trading doesn't eliminate risks linked to currency trading. Though efforts are made to fulfill trade at the requested price, the terms and conditions specified in the Client Agreement, available on their website, apply.

Conclusion: Weighing the Pros and Cons

MGL Forex offers an array of features to appeal to both beginner and seasoned traders. However, the limited options for deposits and withdrawals, coupled with high commission fees, may deter some investors. Their recent venture into educational resources is a positive step, but traders must carefully consider all aspects before investing. MGL Forex is more than just a forex broker; it's a platform that requires a strategic and well-thought-out approach.

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