MagnetFX Review – The Real Truth About magnetfx.co.id

MagnetFX Regulations and Safety of Funds

MagnetFX, an Indonesian forex broker, is fully regulated and supervised by the BAPPEBTI local financial regulator. Keep in mind that the entire website is in Indonesian and there is no option to change to English. This could make it difficult for those who don’t know the language.

This broker provides the standard MetaTrader 5 and standard payment methods for the country. However, there are some issues with its trading conditions.
MagnetFX claims that its registered address is in Jakarta, Indonesia. It also lists a phone number and email. MagnetFX also claims that it is fully licensed and has posted several legal documents to prove this.

You should be aware that any broker located in Indonesia must have a license from the local trading regulator, BAPPEBTI. We checked the records of this watchdog, and MagnetFX was found to be licensed and regulated. You can also find the same address, trade name, and website in the registers of this watchdog. Take a look at:

This shows that the broker has been authorized to practice as per Indonesia’s rules. However, the Indonesian regulatory system is not the most stringent. There are no guidelines for financial service providers in Indonesia. However, you shouldn’t expect high client protection or guaranteed funds if a broker goes under. Such perks are only available to UK-regulated firms.

Every day new scam brokers and trading bots appear on the web with only one goal – to steal your money. We have already exposed some of them, for example – Millennium Operations, Acer Finance, Focus Markets.

MagnetFX: Terms Of Trade

MagnetFX advertises that it offers a limited number of trading instruments, including forex, silver and gold as well as oil and indices. To be honest, this doesn’t sound all that impressive. You can also choose from 20 forex pairs which is an average size.

MagnetFX claims it offers three types of account – Magneto Electro, Elastico and Electro. However, there is not much information about these three accounts. A broker claims that spreads are low and provides an example of three forex pairs. Spreads for EURUSD are said to start at 0.5 pip, GBPUSD from 0.5 pip and USDJPY from 0.5.

However, the trading software was quite different after we opened it. Spreads were as low as 2 pips in EURUSD, GBPUSD at 2.2 pips and USDJPY at 2.1 pips. You can see that there is a substantial discrepancy between the spreads and its promises. This does not speak well of the firm’s reliability, so be cautious. A spread greater than 2 pip will result in higher trading costs, which will be very disadvantageous.

MagnetFX also mentions “low commissions”, but doesn’t give exact figures. It could be that, in the end, you trade with high spreads and that there will be additional commissions.

The broker’s leverage is 1:400. Although there are no leverage restrictions in Indonesia this amount is still quite risky. Retail traders are not advised to use leverage because of the potential for failure. Many countries that regulate forex brokerage activities have decided to limit leverage, for example, 1:30 in the UK or the EU and 1:10 in the US.

Choose only trustworthy and reliable brokers. You can read about the best ones in our article Best online brokers in 2023.

Withdrawal Methods

The deposit methods with MagnetFX are the traditional for this country’s local bank transfers. After we registered there was a BCA bank payment method available.

This broker claims that there are no fees for deposits and withdrawals. It also mentions that the deposit takes approximately 10 minutes.

In its Frequently Asked Questions however we stumbled upon some additional information which seemed quite curious. Here’s what this broker has to say regarding its transaction commissions – “We charge a transaction commission at the close of each order, deducting it from your equity. The value starts from $3 per lot, depending on the account type and the exact amount will be calculated in proportion to the order volume”. All in all keep your eyes open and look out for any unexpected fees and taxes!

MagnetFX: Video

You can also write a comment under the video on our YouTube channel to tell other traders about your experience. But if you’ve already been a victim, contact us for a free consultation by filling out the form at the top of the page.
Below you will find a short video about MagnetFX. Watch it so you don’t miss anything important. In a few minutes you’ll learn the whole truth about MagnetFX!