MahiFX Opinions

thanks, just wondering if it's possible to extend my demo account so i can fully learn how to use the webtrader before actually trading with real cash. i would hate to lose it due to lack of terminal knowledge.

just one more question, how do i predefine a standard stop loss and take profit per trade. any chance to do that or must i do this manually per trade?

Hi Jhehe,

We understand that an account manager has extended your demo platform trial period for you. We hope that will be of help to you. And please don’t hesitate to contact us for a personalised demo walk-through – we’d be delighted to have the opportunity of clarifying any questions you have about the platform and its functionality.

Regarding your last question on stop losses and take profits – there is a good brief explanation here: https://mahifx.com/support/faq/how-d...ofit-on-mahifx and a short video here on triggering Stop Losses and Take Profits: https://www.youtube.com/watch?v=SAZsb9FPzgI.
Let us know if you have any more questions on this or any other aspect of the platform.
Bonnie for MahiFX

http://forexmagnates.com/will-new-ze...and-investors/

damn, this just discouraged me. i'm really trying to stay away from usa brokers, but apparently that isn't going to be possible.

That thing about New Zealand not having deposit insurance does not have anything to do with MahiFX, as MahiFX keeps clients funds with NAB in Australia.
(Even with New Zealand banks, they aren't about to go bankrupt anyway, and deposit insurance is really a poor approach and New Zealand should be commended for a more rational solution that keeps responsibility with people who make investment decisions, rather than taxpayers, IMHO)

In light of what happened with MF Global, plus the recent Cyprus debacle, improving handling of client monies is an important area where brokers could and should look to differentiate themselves.

However, ASIC (MahiFX's Australian regulator) doesn't appear to have particularly strict requirements of brokers with respect to segregation of client funds. I am interested in trading with MahiFX, but would-be traders should read their "Product Disclosure Statement" and "Financial Services Guide".

As of today, Section 7.9 on "Customer Monies" states that the way MahiFX pools client funds together "does not afford you absolute protection and your funds might be at risk if another client defaults."

Are clients supposed to be willing to keep funds with a broker on such terms? A client should do their own due diligence regarding the bank in which their funds are to be kept, but it's not much comfort given we would be exposed to other clients of MahiFX which we have no knowledge of at all.

Maybe the MahiFX people might care to comment.

I haven't looked at other ASIC regulated brokers documents to see if they compare better.

Thank you for inviting us to respond.

MahiFX holds all client funds in segregated trust accounts (the Trust Accounts) with National Australia Bank Ltd (NAB). NAB is a AA rated bank that is regulated by the Australian Prudential Regulation Authority.

MahiFX's operates Trust Accounts in a number of currencies and the Trust Accounts are segregated from MahiFX's own bank accounts. However, MahiFX does not operate separate bank accounts for each and every client because doing so would be administratively burdensome and prohibitively expensive. Instead, client funds are pooled together in each respective currency in the Trust Accounts. The pooling of client funds in segregated trust accounts is common industry practice.

While the pooling of client funds in the Trust Accounts does theoretically expose clients to risk if another client defaults and significantly "overdraws" their Trust Account balance, this risk is negligible. MahiFX has sophisticated risk management technology to mitigate this risk and ensure that the MahiFX platform will automatically close all open positions of a client when their account balance falls below 50% of the required margin to protect both MahiFX and clients from the actions (and losses) of other clients.

In addition, The Australian Corporations Act 2001 (Cth) and MahiFX's Australia Financial Services Licence impose strict regulations and rigorous ongoing checks regarding:

 

1. the segregation of client funds;
2. the monitoring and administration of trust accounts; and
3. MahiFX's financial standing.

This regulation is overseen by the Australian Securities and Investments Commission (ASIC) which rightly takes the handling of client funds very seriously. MahiFX operates in strict regulatory compliance with all relevant laws and regulations relating to its licensing.

Thanks for the explanation. If pooling of funds is common industry practice that's reasonable, but it's still a bit of a worry. For example if some other client has a highly leveraged position heading into the weekend, but then due to weekend event risk gets wiped out immediately at the open on Monday. With a 50:1 leverage factor it requires only a 2% move to wipe out the entire funds. Not unthinkable due to weekend events (say the Cyprus shock for example). If this were to happen, then where do other clients stand?

I have another unrelated question, relating to the rates shown by MahiFX on the XAU/USD chart for March 18.
At the open the rate was 1705.33, and after hitting a high at 1705.83, the closing rate was 1605.60 next morning. There has been some gold volatility in recent days, but was this price action on March 18 for real? Anyone with a short XAU/USD position and a stop at 1,700 would have been taken out, would they not?
I do not recall see similar rates on other platforms.

Hi Hedgy,
The XAUUSD market closed at a mid of 1592.10 on Friday night the 15th of March. As the pricing algorithm primed itself on the Monday open it published some extremely wide indicative rates eg 1351.05 / 2060.60. You are looking at the mid when you are characterising our rate as being high. No stop loss would have been incorrectly filled as they are always triggered on the trailing side of the rate. Someone with a stop loss at 1700 would only be filled if the bid went above 1700. Which it never did.
We hope this helps to clarify the chart for you.
Kind Regards,
MahiFX

Ah I see now that I was looking at a chart of the "Mid" rate. (I usually only look at charts displayed in bid or offer rates, so I had missed that point.)

And now I see what you are saying about stops not being executed, it's the same as what is written here, right?
https://mahifx.com/support/faq/how-a...uted-on-mahifx

E.g., in this case had a buy stop order been set at 1,700.00, it wouldn't have been executed as the bid of the bid/offer of 1,262.00/2148.65 was below 1,700.00. And conversely, on the downside, 2148.65 would be above stops set at, say 1,300.00, and therefore those stops would not have been triggered either?

If this is the case then I am now clear. Thanks!

i'm not as worried about the fund deposits as the terminal itself. the webtrader platform constantly disconnects for me, which isn't mahifx's fault as i live half the globe away. however, it would nice to know that they have more than one server, hopefully in new york or somewhere near there.

Hi Hedgy, yes that’s absolutely right. Pleased that you are now confident with the process of how stop losses are executed.

Kind Regards,

^SC for MahiFX

Hi Jehe,
First of all please be assured that we do have a server in the northern hemisphere. The problem you experienced was not with the server itself but rather a temporary technical bug. Please be assured that the disconnection issue has now been fully resolved. Please accept our apologies for any inconvenience.
Kind Regards,
^MMF for MahiFX

Hi there, we thought you might be interested to know that we have launched a (very!) quick one questions survey as to whether traders want to access our tight pricing through MT4 in addition to through our proprietary platform. We'd be appreciative of your vote as we are committed to hearing and responding to the trading community.
Link is here: https://mahifx.com/mahifx-mt4

I don't care about MT4 myself, but MT4 does have an iPhone App, so MahiFX being accessible via the MT4 iPhone App would be a plus. (iPhone accessibility is my number one want.)

So then this is a good market maker I presume? Any insurance if it goes bust?

I see it's now possible to transfer funds between straight MahiFX and MahiFX+MT4 accounts. Very nice addition indeed. Will be using MahiFX more as a result, I think. Well done.