MY FOREX FUNDS REVIEW: IS IT RELIABLE FOR PROPRIETARY TRADING?

Founded in 2020, My Forex Funds was one of the best proprietary trading firms that allowed people to trade forex using the firm’s capital. It was starting to gain traction among forex traders due to its favorable trading terms.

To everyone’s shock, My Forex Funds (myforexfunds.com) was recently shut down, and its operator, Murtuza Kazmi, was accused of running a $300 million fraud against retail traders by U.S. and Canadian regulators.

With so many prop firms popping up in the market, it’s vital to know the warning signs of a broker running an unsustainable business. We’ll take a look at My Forex Funds to see if we can spot where the red flags might have been.

My Forex Funds

CASE BACKGROUND

The complaint alleges that individuals operating under the guise of “My Forex Funds” enticed retail customers by offering the possibility of becoming “professional traders.” Capital from Traders Global would be used to trade with third-party liquidity providers, with the trading profits shared with these customers.

The company reassured investors with slogans like, “Your success is our business” and “We only make money when you do.”

However, the actual situation was very different: Traders Global became the opposing party in many trades instead of third-party liquidity providers.

Furthermore, the complaint alleges that Traders Global employed strategies to reduce the chances of customers achieving profitable trading outcomes.

As part of this, several excuses were used to terminate customer accounts, commissions were assessed in a misleading manner that reduced customer equity, orders were executed at lower prices than customers perceived them to be at the time of purchase using covert software, and the few successful customers were intentionally handicapped to maximize their losses and minimize profits.

According to the complaint, over 135,000 customers have enrolled in Traders Global’s trading program since November 2021, resulting in over $310 million in fees. The suspect running the scheme, Murtuza Kazmi, has been accused of diverting tens of millions of dollars from these fraudulent activities to his accounts, including buying luxurious properties and vehicles.

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RELATED INTERNATIONAL ACTION

On August 29th, the Ontario Securities Commission of Canada issued a temporary cease trade order emphasizing the widespread effects of this financial fraud. The order prohibits trading securities linked to Traders Global Group Inc. and Murtuza Kazmi.

CFTC expressed gratitude for the Ontario Securities Commission’s assistance and collaboration.

CFTC FRAUD ADVISORIES

The CFTC emphasizes the importance of public vigilance and awareness of possible financial scams following this prominent case. The CFTC has released several customer protection fraud advisory articles to equip individuals with the knowledge to identify, avoid, and report fraudulent actions within the financial markets.

The forthcoming hearing holds the potential to provide additional insights into the “My Forex Funds” case, presenting a crucial chance to gather further details and potentially unveil the complete scope of the alleged fraudulent actions. Keep an eye out for updates as this substantial legal battle develops.

MY FOREX FUNDS BEFORE THE CFTC CASE

Before the CFTC case intervened, the information below constituted how My Forex Funds operated. Perhaps it will become operational again if the broker addresses and resolves the issue in an upcoming hearing in court.

PROS

• Using the scaling program, you can take your funded trading account up to $2,020,000
• It is possible to split the profits around 85%
• If you complete the evaluation process, you will receive a refund in full.
• You can open trades during weekends on the Evaluation account
• Each program has affordable access prices with multiple options to choose from
• When you opt for the Accelerated program, you can earn money without the evaluation process
• The Rapid program offers leverage as high as 500:1
• In addition to bi-weekly and weekly payouts, cryptocurrency payouts are available.

CONS

• Measuring success within a short operational period.
• The scaling program is more complicated than other prop firms because it has many rules.
• From Monday through Friday, online support is available through chat or email. There is usually a long queue when it comes to online support.

MY FOREX FUNDS – WHAT IS IT?

My Forex Funds was a prop trading company since July 2020. The firm offered its capital to professional forex traders through three financing plans, including an accelerated program that provided a live account on the subscription payment day.

Clients could utilize the capital received to trade various instruments: currency pairs, metals, oil, stock indices, and cryptocurrencies — all in CFD format.

My Forex Fund – what is it?

The broker operated on the MT4 and MT5 platforms, allowing traders to trade with leverage and narrow spreads.

IS MYFOREXFUNDS RELIABLE?

Since My Forex Funds obtained its capital directly from traders and is not a broker or financial agent, it does not need regulation (according to them). Traders should conduct a thorough review of any broker that is unregulated before deciding to invest their assets.

Its young age, combined with the fact that it has only been in business for two years, should arouse suspicion.

My Forex Funds reliability 

This has not stopped the brutal growth it had from 2022 and continuing on into 2023.

We can confirm from the opinions of some users and the payment proofs shown by some past customers that, at least for now, it does not seem to be a crooked prop trading firm that charges for the evaluations without paying the profits.

In light of the above, we recommend proceeding with extreme caution if My Forex Funds becomes available again. The dishonesty of user account terminations, delayed or canceled payouts, diversion of funds, and manipulation of order executions does not indicate a broker that is safe to trade with.

These issues would need to be thoroughly addressed before traders could place their trust in this broker again.

HOW DOES IT WORK?

Let’s take a look at the trading conditions that existed on My Forex Funds when it was operational.

Traders could choose from 3 different trading programs based on their experience level.

How does it work

1. RAPID

My Forex Funds claimed you could earn real profits through bonuses ranging from $10,000 to $100,000 if you were new to the trading market and chose the Rapid program.

Rapid on MyForexFunds.com

2. EVALUATION

This program was recommended to profitable traders still learning to trade. The funded capital ranged between $10,000 and $300,000. You had 30 days to complete the evaluation.

Evaluation on MyForexFunds.com

3. ACCELERATED

This level catered to the most experienced traders. The accelerated program allowed you to skip the evaluation process and start with a balance between $2,000 and $50,000. However, My Forex Funds claimed that funds be grown to as much as $2,020,000.

Conventional Accelerated myforexfunds

Emphatic Accelerated myforexfunds

PROFIT SPLIT

My Forex Funds claimed you got 12% of the profits on rapid accounts.

For evaluation accounts, you got an alleged 75% after completing the first month, 80% in the second month, and 85% for the remaining time.

You were supposed to get 50% of the profits earned for accelerated accounts.

MY FOREX FUNDS RULES

To maintain your account, you had to comply with some rules established by the firm. Failure to comply with any of them could result in a permanent suspension.

TRADING FREQUENCY

The rule stated that you must execute at least one trade daily, three times weekly, to receive payments.

CONSISTENCY AND BEHAVIOR IN TRADING

The company would not pay you if it detects signs that you are using your account for gambling or changing your behavior erratically, such as significantly increasing your lot size, daily trades, or trade risk.

The My Forex Funds rule stipulated that a maximum deviation of 2 is allowed to ensure this. For example, suppose you trade ten lots and ten trades per week in the first week. In that case, you could increase that number to 20 the following week or decrease it to 5, as deviations greater or lesser than that constitute a consistency violation.

Trading behaviors such as Meta Trader inefficiencies, latency arbitrage, long and short arbitrage, reverse arbitrage, and opposite account trading would result in account termination according to another trading behavior rule.

USE OF EXPERT ADVISORS (EAS)

There was no restriction on using Expert Advisors, but you needed to submit the source code to the firms first to confirm that it you could use it.

COVERED POSITIONS

You could only hedge two positions simultaneously in forex at any given time.

MANAGEMENT OF RISKS

A maximum daily withdrawal of 5% could not exceed the account size, regardless of the account size.

The Emphatic account model allowed a maximum of 10% in one modality (specific to the Accelerated account).

You could not withdraw more than 12% from your account during a single pay period.

Trades were impossible during the weekend, except for those on the Evaluation account.

My Forex Funds’ official website has all the information about the rules: http://myforexfunds.com.

FINANCIAL INSTRUMENTS AVAILABLE

My Forex Funds offered three trading programs where you could trade forex, CFDs on indices, and commodities such as oil and metals.

On the other hand, stock and cryptocurrency trading was prohibited on the other two types of funded accounts, so only Rapid accounts gave you access to all the instruments available on the MT 4/5 platform.

You might find these prop firms more suitable if you trade stocks. If you trade futures, these prop firms may work better for you.

As a result of changes in margin, leverage, liquidity, and other factors, the company regularly updated the list of available instruments.

Traders who were having trouble passing this instrument’s evaluation phase may have some removed.

LEVERAGE

You could leverage your account on My Forex Funds based on the following factors:

• Rapid accounts: 1:500
• Evaluation accounts are 1:100
• Accelerated conventional accounts were 1:50, while emphatic accounts were 1:100.

Accelerated Conventional accounts vs. emphatic accounts

MINIMUM & MAXIMUM DEPOSIT

The minimum deposit for My Forex Funds was $49, and the maximum deposit is $4,900.

MINIMUM ORDER & LOT SIZE

For My Forex Funds, the minimum order size was 0.01 lots, and the maximum order size was ten lots.

VERIFICATION PROCESS & DOCUMENTS REQUIRED

You needed the following documents to open an account with My Forex Funds:

• A government-issued photo ID (e.g., passport, driver’s license)
• Bank statement or utility bill
• Funds verification

Sign-up for My Forex Funds

FIAT AND CRYPTOCURRENCY SUPPORT

Here is a list of the fiat currencies that My Forex Funds supported at the time of its operation:

• USD
• EUR
• GBP
• AUD
• CAD

Additionally, the broker supported the following cryptocurrencies:

• Bitcoin (BTC)
• Ethereum (ETH)
• Litecoin (LTC)
• Bitcoin Cash (BCH)
• Tether (USDT)

PLATFORM FEATURES

Only two trading platforms were available at My Forex Funds: MetaTrader 4 and 5.

Platform Features

As we are talking about the most popular trading platform of all time, we should not have a problem since it provides enough tools and features for professionals.

MYFOREXFUNDS MOBILE APP

The prop firm did not provide any mobile app to its users. However, the website also has an interactive interface suitable for mobile browsers.

DEPOSIT & WITHDRAWAL METHODS

Each account type had its profit payouts.

After the first month, you would be able to withdraw profits on a bi-weekly basis in both the Rapid and Evaluation programs.

Accelerated accounts allowed withdrawals weekly if your account was over five days old.

You could generally request your winnings through bank transfer, cryptocurrencies, Transferwise, or PayPal.

Despite no limit on winnings, there was a limit on withdrawals, which could not exceed 12% of the account balance.

Despite all the above info, there were many traders who claimed that the company had denied their payout. The dissidents filed complaints to CFTC and acted as black swans.

MYFOREXFUNDS TOOLS AND EDUCATIONAL MATERIAL:

Educational resources on My Forex Funds were almost nonexistent — just a blog with a few posts. This prop trading firm also interviewed some of its most successful traders through its funded account program.

MY FOREX FUNDS CUSTOMER SUPPORT

Customers at My Forex Funds generally rated customer service positively, but some users cited a long waiting queue as being a negative experience.

My Forex Funds Customer Support

My Forex Funds offered the following channels for contacting support:

• Discord server
• Live chat

MY FOREX FUNDS COMMISSIONS & FEES

We estimated that the minimum spread was one pip, and the fee for each transaction was $3 per lot. Depending on the financing plan, My Forex Funds charged a subscription fee that ranges from $49 to $4,900. Banks and payment systems may charge additional fees for withdrawals.

BOTTOM LINE

Our community must remember that the legal process is ongoing as we navigate these serious allegations against “My Forex Funds.” Our society must exercise patience and restraint to allow the court to evaluate the evidence and arguments presented thoroughly.

The forthcoming hearing represents a crucial step in this journey, and we encourage everyone to stay calm and informed, as it is only after the court’s deliberations that we will gain a clearer perspective on this matter. Lastly, watch the Prop News section for ongoing updates regarding My Forex Funds.