Magic Compass Forex Broker

Magic Compass Forex Broker - Complete Information Guide

1. Broker Overview

Magic Compass Ltd., established in 2016, is a financial services company headquartered in Limassol, Cyprus. The firm operates as a private entity and is primarily focused on providing trading services to retail clients and institutional investors. The company has carved a niche in the forex and CFD trading markets, catering to a diverse clientele that includes both novice and experienced traders.

Since its inception, Magic Compass has achieved significant milestones, including obtaining its regulatory license from the Cyprus Securities and Exchange Commission (CySEC), which allows it to operate within the European Union under the MiFID regulations. This regulatory framework ensures that the broker adheres to stringent financial standards aimed at protecting investors and maintaining market integrity.

Magic Compass operates under a market-making model, offering a range of trading instruments that include forex pairs, commodities, and indices. The broker's business model is designed to facilitate seamless trading experiences, leveraging advanced trading technologies and platforms.

2. Regulation and Compliance Information

Magic Compass is regulated by the Cyprus Securities and Exchange Commission (CySEC), holding the license number 299/16. This license is valid for the provision of investment services across the European Union, ensuring that Magic Compass complies with both local and EU regulations.

The regulatory framework mandates that Magic Compass maintains a minimum capital requirement of €730,000 and keeps client funds in segregated accounts. This separation of funds ensures that clients investments are protected even in the event of the broker's insolvency. Moreover, Magic Compass is a member of the Investor Compensation Fund (ICF), which provides compensation of up to €20,000 per client if the broker fails to meet its financial obligations.

In terms of compliance, Magic Compass adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which require the broker to verify the identity of its clients and monitor transactions for suspicious activity. This commitment to regulatory compliance enhances the overall safety and reliability of the trading environment provided by Magic Compass.

3. Trading Products and Services

Magic Compass offers a limited but competitive range of trading products. The broker provides access to less than 10 currency pairs, which is relatively modest compared to other brokers that typically offer over 30 pairs. The primary currency pairs available include major currencies like EUR/USD and GBP/USD.

In addition to forex trading, Magic Compass offers Contracts for Difference (CFDs) on various assets, including indices, commodities, and precious metals. Notably, the broker does not currently support cryptocurrency trading, which may limit options for clients interested in digital assets.

The product offerings are updated periodically, and clients can expect new instruments to be introduced as market demand evolves. Magic Compass primarily focuses on retail trading services, providing individual traders with the tools and resources needed to engage in the financial markets.

4. Trading Platforms and Technology

Magic Compass has adopted MetaTrader 4 (MT4) as its primary trading platform, which is widely recognized for its user-friendly interface and robust features. MT4 supports a range of technical indicators, charting tools, and automated trading capabilities through Expert Advisors (EAs). This platform is available for desktop and mobile devices, allowing traders to access their accounts from anywhere.

In addition to MT4, Magic Compass offers the MC Trader mobile application, which is designed for traders who prefer to trade on the go. This app retains many of the powerful features found on the MT4 platform, ensuring that clients do not miss trading opportunities while away from their desktops.

The broker employs a Market Making execution model, which allows for quick order execution and competitive spreads. The technical infrastructure supporting Magic Compass is robust, with servers strategically located to enhance trading performance and minimize latency.

Magic Compass also provides API access for clients interested in automated trading solutions, enabling them to integrate their trading strategies with the broker's platform seamlessly.

5. Account Types and Trading Conditions

Magic Compass offers three distinct account types to cater to various trading preferences:

• Silver Account: This account type is designed for beginners and has a minimum deposit requirement of $100. It offers floating spreads and does not charge any commission. The leverage available is up to 1:20, with a minimum trade size of 0.01 lots.

• Gold Account: Aimed at more experienced traders, this account requires a minimum deposit of $2,500. It provides similar benefits to the Silver Account but allows for more advanced trading strategies, including the use of EAs.

• Raw Spread Account: This account type is tailored for professional traders with a minimum deposit of $5,000. It offers tighter spreads but charges a commission based on trading volume.

All account types come with negative balance protection, ensuring that clients cannot lose more than their deposited funds. The broker's overnight fees and margin requirements are clearly outlined, allowing traders to manage their risk effectively.

6. Fund Management

Magic Compass supports several deposit and withdrawal methods, including bank wire transfers and credit/debit cards. The minimum deposit requirements vary by account type, with the Silver Account requiring $100, the Gold Account $2,500, and the Raw Spread Account $5,000.

Deposits are typically processed within two hours, and there are no fees associated with deposits. Withdrawals are also processed promptly, usually on the same business day, with no withdrawal fees charged by the broker. However, clients should be aware that their banks may impose fees for certain transactions.

The broker's fund management policies emphasize security and efficiency, ensuring that clients can manage their trading capital with ease.

7. Customer Support and Educational Resources

Magic Compass provides customer support through multiple channels, including phone, email, and live chat. The support team is available during business hours, operating within the GMT +2 time zone. The broker offers support in English, catering to a broad range of clients.

In addition to customer support, Magic Compass is committed to educating its clients. The broker offers a variety of educational resources, including webinars, trading tutorials, and market analysis. These resources are designed to help traders improve their skills and make informed trading decisions.

Clients can access daily market analysis, news, and research reports, which provide insights into market movements and potential trading opportunities. The availability of trading tools, such as calculators and economic calendars, further enhances the trading experience for clients.

8. Regional Coverage and Restrictions

Magic Compass primarily serves clients within the European Union and other regions where it is licensed to operate. The broker's services are available to a wide audience, and it has established a strong presence in the Cypriot and EU markets.

However, Magic Compass does impose certain restrictions and does not accept clients from specific countries, including the United States, Canada, and regions where regulatory compliance is not feasible. This ensures that the broker adheres to local laws and regulations, maintaining a compliant trading environment.

In summary, Magic Compass stands as a regulated broker offering a range of forex and CFD trading services. With its competitive trading conditions, robust technology, and commitment to client education, it aims to provide a reliable trading experience for clients, although potential traders should be aware of the limitations in product offerings and account types. As the magic.compass broker continues to evolve, it remains focused on meeting the needs of its diverse clientele while ensuring compliance with regulatory standards.