bmfn.com in short
BMFN is a trading name of BMFN Limited, which is authorized and regulated by the Vanuatu Financial Services Commission (VFSC). It is an international company, which is headquartered in Republic of Vanuatu. Customers can trade more than 100 CFDs on currency pairs, indices, commodities, and stocks through the MetaTrader 4 (MT4) platform, which currently is the standard in the industry. BMFN claims to provide Direct Market Access (DMA) trading conditionsThe leverage can be up to 1:400 and you can start trading by investing USD50.
Regulation
One of the important things to check before anything else is the regulation of the company. BMFN Limited is authorized and regulated by the Vanuatu Financial Services Commission (VFSC) holding Vanuatu Securities Dealers License number 40202. The company claims that client money is segregated from its own funds.
Account Types
There are two types of live accounts depending on the instruments available for trading and their spread. The minimum required for all account deposits is USD50. However, there is not any detailed information on the webpage. Only the F.A.Q. section informs about the account types. According to it you can open:
MT4 account where the instruments have a fixed spread. You can only trade currency pairs.
MT4 account where instruments have a floating spread. You can trade CFDs on commodities, indices, and shares.
How the Company Executes Client Orders
The only document related to the execution of the orders that we found on the webpage was the Client Agreement. It informs that CFDs are not traded on a regulated market. Instead, CFDs are traded in the over-the-counter dealer market. BMFN Limited is a dealer in CFDs and, as such, may be a counterparty to your transactions. No matter what the company claims, the documents show that it is a counterparty to all client orders. Therefore, the company is a market maker. Being a market maker involves a conflict of interest because when the company executes orders, it keeps the risk to itself. Every loss for customers is a profit for the company.
Client Agreement also warns that placing stop loss orders that are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it may also be difficult or impossible to liquidate a position without incurring substantial losses. Client acknowledges and understands that BMFN does not guarantee the execution of orders at specific prices, including conditional orders such as stops and/or limits This means that all orders are subject to slippage and stop loss orders are not guaranteed and will be filled at the next available market price.
The same document explains that investments in leveraged and non-leveraged transactions are speculative, involve a high degree of risk, and are appropriate only for persons who can assume risk of loss more than their margin deposit to carry CFD positions and may result in significant losses that substantially exceed client’s investment and margin deposit. In other words, clients are not covered by the Negative Balance Protection policy and in the end, you can owe money to this company.
In addition, the company warns that clients must not enter into transactions for purposes of scalping or arbitrage. BMFN defines scalping as any transaction which remains open for a period of less than three minutes in duration. BMFN is then authorized to reclaim any trading profits that a client obtains through the entering of transactions for purposes of scalping, arbitrage or intentional exploitation of inaccuracies of rates/ pricing offered by BMFN.
Fees
In addition to the usual fees such as spread, swap, etc., there is also an inactivity fee. Funded trading accounts which remain inactive (no successful login and/or no deposit or withdrawal transactions) for a period of one calendar month will be charged a monthly fee of USD/EUR/CHF20. Trading accounts with balance up to USD5,000, which remain inactive for a period of one year, will be charged an inactive account fee and technical administration fee for the amount of the entire account’s current balance. Trading accounts with balance over USD5,000, which remain inactive for a period of two years, will be charged an inactive account fee and technical administration fee for the amount of the entire account’s current balance.
So, be careful how long your account will be inactive, or you can lose all your money.
Deposits and Withdrawals
Deposits can be accomplished by credit or debit cards, bank transfers, Skrill, Neteller, and CashU. The minimum deposit amount is USD50. The company claims not to charge any fees on deposits. However, the third-party bank fees may be applied, and they will be covered by the customer.
Withdrawals are requested from the Private Cabinet portal and are processed to the same account as previously used to fund the trading account. Funds deposited by credit card are not available for withdrawal for a period of 30 calendar days. There is no minimum withdrawal amount. The company claims not to charge any withdrawal fees. Any third-party fee will be covered by customers. However, there is a bank wire commission of USD50 per transaction.
Withdrawal/Deposit are processed within one business day, but it may take up to 5 business days to be returned to the customer’s bank account.
Trading Platforms
MetaTrader 4 (MT4) is an award-winning platform designed to handle trades with many financial instruments. It provides traders with the ability to use technical analysis and automated trading. There are more than 50 built-in indicators and tools that help you with automation of the trading, analyses of trends, forecast, and defining the right entry and exit points. The platform is available as a desktop version for Windows based PCs and MAC, and as a mobile application for iOS and Android phones and tablets.
Assets
Currency pairs – 23 major and minor currency pairs can be traded. Spreads are fixed and the leverage for can be up to 1:400.
Indices – You can trade 9 of the major indices across North America, Europe, and Asia, such as DAX30, Nikkei225, UK100, etc. Spreads are floating and the leverage is 1:33.
Commodities – CFDs on Gold, Silver, Crude Oil (spot and futures) are available for trading. Spreads are floating and the leverage is 1:33.
Shares – Nearly 70 CFDs on US Shares are available for trading.
Summary
BMFN is a VFSC-regulated company, which acts as a market maker; therefore, the main conflict of interest exists. Customers can trade currency pairs, commodities, indices, and shares through the MT4 terminal, which can be downloaded for PC or MAC machines and as a mobile app. Clients can top up their accounts by bank transfers, debit, or credit cards, and some e-wallets. Live trading can be started by investing USD50. Please be careful, there is no protection against a negative balance, and you may lose more than your initial deposit. There is a possibility of losing your money due to inactivity. Scalpers are not welcome here.
