What is Magic Compass?
Magic Compass is a regulated financial services company that offers trading and investment solutions, regulated by the Cyprus Securities and Exchange Commission (CySEC). It provides essential information and data to traders, such as economic calendars and real-time quotes, to assist in making informed trading decisions. Additionally, Magic Compass emphasizes client security through measures like Negative Balance Protection, which safeguards clients from losing more money than they have deposited.
Pros & Cons
Pros of Magic Compass
- Regulated by CySEC: Magic Compass is regulated by the Cyprus Securities and Exchange Commission (CySEC), a reputable financial regulator. This means that clients' funds are protected and that the broker must comply with a strict set of rules and regulations.
- Competitive spreads: Magic Compass offers competitive spreads on a wide range of trading instruments. This means that traders can keep more of their profits.
- Wide range of tradable assets: Magic Compass offers a wide range of tradable assets, including CFDs on Forex, Metals, Energy, and Indices. This gives traders plenty of options to choose from.
- Demo account available: Magic Compass offers a demo account, which allows traders to practice trading with virtual funds before risking any real money. This is a great way for new traders to learn the ropes and for experienced traders to test new strategies.
Cons of Magic Compass
- Maximum leverage of 1:20: Magic Compass offers a maximum leverage of 1:20. This is lower than some other brokers, which offer leverage of up to 1:500. However, it is important to note that high leverage can lead to large losses, so it is important to use it responsibly.
- Customer support is not available 24/7: Magic Compass customer support is not available 24/7. This can be a problem for traders who need help outside of regular business hours.
- Regional Restrictions: Magic Compass does not provide services for citizens/residents of certain jurisdiction, such as Canada, Cuba, Iran, Iraq, Japan, Myanmar, North Korea, Sudan, Syria, Turkey, and the United States.
Is Magic Compass Legit?
Magic Compass is a legitimate financial services provider, operating under the stringent regulatory framework of the Cyprus Securities and Exchange Commission (CySEC) with a license number 299/16. CySEC is well-regarded in the financial industry for enforcing strict compliance standards that ensure transparency, fairness, and security for investors' funds. The regulation by such a reputable authority indicates that Magic Compass adheres to high regulatory standards and practices required within the European Union.
Additionally, the provision of Negative Balance Protection is a significant feature that safeguards clients from losing more money than they have deposited, further enhancing investor protection and underscoring Magic Compass's commitment to client safety and ethical financial practices. These regulatory and protective measures provide a solid foundation for trusting in the services offered by Magic Compass.
Market Instruments
Magic Compass offers 90+ tradable assets, including over 20 Forex Pairs, Metals such as Gold and Silver, Energy contracts like Oil and Natural Gas, and Spot Indices.
However, popular cryptocurrency trading are not supported on this platform.
Account Types
Magic Compass provides different account types to cater to different types of traders: Silver Account, Raw Spread Account, and Gold Account.
The Silver Account is designed for those who are starting or who prefer a low-risk trading environment. It has an initial minimum deposit of $100. The account offers leverages of 1:5, 1:10, 1:20, and does not require any additional margin to open a lock position, provided the Margin Level is greater than 100%. It offers market execution with no requotes and allows for trading CFDs on Forex, Metal, Energy, and Spot Indices. This account comes with support for MetaTrader 4 and mobile trading on both iOS and Android platforms. It offers floating spreads and does not allow the use of Expert Advisors. The Silver Account does not charge any commission and no swap-free account option is available.
The Raw Spread Account is meant for more experienced traders. The initial deposit requirement is $5000. It comes with the same benefits as the Silver Account, but with a couple of notable additions. Expert Advisors are allowed and execution type is provided. This account charges a commission, but it offers more tight spreads, which are desirable for many advanced traders.
The Gold Account is ideal for professional traders with its initial minimum deposit of $2500. It comes with the same benefits and features as the Raw Spread Account, including support for Expert Advisors, providing an execution type, and floating spreads. However, unlike the Raw Spread Account, there's no commission charged in Gold Account.
All account types offer negative balance protection, a margin call at 80%, a stop out level at 50%, and unlimited maximum positions. Please note that for all accounts, minimum and maximum trade size vary according to the specific trading instrument selected. Also, each account executes the 'triple swap day' on Wednesday, and every Friday from 21:00 - 23:30, margin call and stop out levels are set at 80% and 50% respectively.
Leverage
Magic Compass Ltd offers varying levels of maximum leverage based on the account type, with options ranging from 1:5, 1:10, to 1:20. This means that for every unit of currency (euro, in this case) a trader has in their account, they can control a trade worth 5, 10, or 20 units, depending on the chosen leverage. However, it's critical to understand that leverage, while it can significantly increase potential profits, can also magnify losses, so it should be used with careful consideration and proper risk management.
Spreads & Commissions
Magic Compass Ltd offers floating spreads that start from as low as 0.1 pips. Floating spreads adjust in real-time according to the market's volatility, so they can be narrower or wider depending on market conditions.
As for commissions, it varies based on the account type chosen. For example, the Silver and Gold Account does not charge any commission, while the Raw Spread Account does. The specific commission amount for the Raw Spread Account isn't specified and could depend on factors like the trading volume.
Trading Platforms
Magic Compass offers two main trading platforms:
The MetaTrader 4 platform caters to desktop users. This platform is renowned for its powerful features and flexible customization options. On MetaTrader 4, traders can access three different chart types and nine time frames, enabling them to analyze the market comprehensively. It comes with over fifty pre-installed technical indicators. This makes it easier for traders to predict future market movements and to develop a trading strategy that fits their risk tolerance and trading goals. Moreover, MetaTrader 4 has a highly customizable interface that allows traders to tailor the platform's layout and functionalities to their trading needs.
The MCtrader is available for mobile users. With the MCtrader app, traders can enjoy the functionalities of a fully-fledged trading platform on their iOS or Android devices. This platform allows for seamless trading anytime and anywhere, providing the flexibility that modern traders require. Whether you're on the move or away from your desktop, with the MCtrader app, the financial markets are always just a few taps away. The app retains many of the powerful features found on the MetaTrader 4 platform, ensuring that traders do not miss any trading opportunities when they are not at their desktops. This way, Magic Compass Ltd ensures that its clients can trade conveniently, irrespective of their preferred devices.
Trading Tools
Magic Compass equips its traders with essential trading tools designed to enhance their trading experience and improve decision-making. Among these tools, the economic calendar is a standout feature, providing traders with timely updates on important economic events and indicators that can influence market movements. This strategic tool helps traders anticipate volatility and plan their trades accordingly.
Additionally, Magic Compass offers real-time quotes, enabling traders to see live market prices without delay. This feature is crucial for effective trading, as it allows traders to react swiftly to market changes and capitalize on opportunities as they arise.
Deposit & Withdrawal
Magic Compass offers a streamlined and efficient process for handling deposits and withdrawals, ensuring that clients can manage their funds with ease. The firm accepts bank wire transfers for both deposits and withdrawals, supporting major currencies such as CHF, USD, and EUR.
Importantly, service charges for these transactions vary depending on the amount moved, which allows for flexibility based on the client's needs. Typically, deposit and withdrawal requests are processed swiftly within 1-2 working days. However, it is noted that deposits might take up to 5 business days if delays occur due to verification processes or slow receipt of funds into Magic Compass accounts.
For withdrawals, a minimum amount of EUR 50 is set, and a fee of 3.5% is applied, which covers fixed fees and helps recuperate some charges incurred during deposit transactions. Moreover, if all required documentation is provided promptly by the client, withdrawal requests can be processed on the same day during standard business hours from 08:00 to 18:00 (GMT+2), adjusting to GMT+3 during Daylight Saving Time.
Customer Support
Clients can easily reach the support team through various communication channels including a dedicated contact form, by phone at +357 25023880, or via email at info@magiccompass.com. The headquarters of Magic Compass is strategically located at Sarlo 9, Ayios Athanasios, 4106 Limassol, Cyprus, anchoring its presence in a key financial hub.
Additionally, the company offers a detailed FAQ section on its website, which addresses a range of topics from safety and privacy concerns to account management and trading queries.
Conclusion
To provide a summary, traders in the present era have flexible options when it comes to trading and investing with Magic Compass. High degree of security is ensured by its regulation under CySEC in Crypus. Economic calendars, real-time quotes, and Negative Balance Protection all contribute to better trading by providing market information and financial stability. Besides, Magic Compass's customer service and FAQs section show how customer satisfaction is their first priority. All things considered, Magic Compass seems to be an ideal broker for most traders.
FAQs
What is Magic Compass?
Magic Compass is a regulated trading platform that offers access to a wide range of financial markets, including Forex, indices, commodities, and cryptocurrencies.
What trading platforms does Magic Compass offer?
Magic Compass offers two trading platforms: MetaTrader 4 (MT4) and MCtrader. MT4 is a popular trading platform that is known for its user-friendly interface and wide range of features. MCtrader is a proprietary mobile trading platform that is designed for traders on the go.
DoesMagic Compass offer swap-free accounts?
No, swap-free accounts are not supported here.
Are there any regional restrictions?
Yes. Magic Compass does not provide services for citizens/residents of certain jurisdiction, such as Canada, Cuba, Iran, Iraq, Japan, Myanmar, North Korea, Sudan, Syria, Turkey, and the United States.
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