What Makes My Forex Funds ‘Tick’?

BROADER UNDERSTANDING

Before we try to understand what makes My Forex Funds ‘tick’ let us briefly remind everyone what a proprietary firm is. Proprietary firms have existed and operated successfully for quite some time now but has only really just begun to become a buzz in recent years in the early days of retail trading there wasn‘t really much fuss about them but the business model has begun to flourish and attract a lot more traders since then, for those who don’t know what a “prop firm” is, its basically a company that, through a series of challenges, select traders that they feel confident enough to entrust their capital to and eventually, upon successful completion of these challenges, then fund the trader with their own capital on a profit share basis, in essence they are really just a means for traders to gain access to larger sums of capital that they otherwise can not acquire on their own and use their trading skills to turn a profit using said capital on a weekly or monthly basis.

MY FOREX FUNDS

Now that we‘ve got the just of what a proprietary firm is, let’s zoom in on a company called My Forex Funds/MFF and see for ourselves what makes so attractive or otherwise and ultimately establish if this is, in fact, the right choice for traders.

MFF, as mentioned, is one of the fairly newer players in the forex funding space, although still fairly new in the industry, the internet is quite a buzz with MFF on most peoples search histories, MFF has even earned the title of being the fastest growing prop firm, with over 40 000 traders recorded as takeling the challenge at least once in just a 2-year period, and according to some fellow forex platforms, this number is only growing daily. The firm was established in 2020 and is operating out of Canada, according to traders, My Forex Funds offers the best funding conditions in the industry and are quickly becoming market leaders with overall great trading conditions, while other traders express a very different opinion of MFF, experiencing issues with customer service, account suspensions, unregulated operations, zero refunds for internal sever errors, but with traders citing exactly the opposite experience with the same company, who do we believe？ To join or not to join？ What is the truth behind it all？ WikiFX plans to answer these questions and more.

MODUS OPERANDI AT MFF

My Forex Funds operates in pretty much the same fashion as most, if not all of its counterparts out there, the only difference being price, and some rules and requirements that are set in stone for each respective firm, at My forex Funds the rules are said to be a bit more relaxed than other prop firms, with the chance of acquiring the highest level of funding available to traders, making them the most obvious choice for today‘s traders, the newer generation of traders has a notorious reputation for wanting maximum results without much effort, and seeing that MFF offers packages for every level of trader, even the newest and a lot less experienced trader, but do the trading conditions cater to newer and alit less experienced traders？ I think not, but let’s find out together.

TWO PHASES UNTIL FUNDED

My Forex Funds has two phases that traders are required to pass before they are funded. Phase one or the establishment phase, aimed at revealing the type of trader you are, during phase one traders are held to strict risk management rules such as a maximum of 5% daily drawdown and 10% overall drawdown on account equity, yes equity not balance, aside from the drawdown rule, traders must also achieve an 8% profit target within a 39-calendar-day period, the drawdown rule is what is shrouded in the most controversy, many traders and even publications have called this rule ridiculous and designed to set traders up for failure, lets break it down and see. The most annoying element about the drawdown rule as mentioned before, is that it is based on your equity, meaning that of you are trading a 10k account and you take one trade, and your trade is now running at 5% profit and you hold your trade overnight into the next trading day, the 5% drawdown applies to your balance as well as your floating profit, and this, ladies and gentlemen are where the trader is at a huge disadvantage because if that trade suffers a deep correction before the continuation, your trade should nit retrace anything more then 5% or $525 or you will lose the challenge and have to pay another upfront fee to trade another demo account and try to pass another challenge, even with the discounted fee for a retry this can still become a huge waste of capital that could be invested elsewhere, so even with following the unwritten rule of risking between 2 to 3 percent per trade, traders will still fail the challenge if they suffer 2 to 3 consecutive losses, even just one stop hunt or liquidity grab could wipe out your 5% maximum drawdown and lose you the challenge, this is even worse because almost 90% of trades suffer some kind of drawdown before often respecting structure and trading into profit.

This rule is extremely hard to follow and of course this is how these types of companies make a lot of their money, let‘s do a math. According to MFF, they have reached over 40,000 clients worldwide who made the financial commitment, of those only 5 traders are still trading their live accounts, that’s less then a 1% pass rate, this is online with the notion that over 95% of retail traders fail but when you crunch the numbers, 40,000 traders at $84 a pop equates to $3, 360,000. 00 in upfront fees, provided that each trader only took the challenge once (this number could be much higher), while only 5 traders are still actively trading the live accounts, assuming that each trader is trading the maximum 200k account ($1, 000,000 total funding), MFF raked in more then $2, 360,000. 00 in gross profit for traders to trade a demo account, RIDICULOUS! Based on this drawdown rule this margin will only become greater as more and more traders fail due to this technicality.

This rule alone will be the main reason traders keep failing and even those who do move on to being funded will most probably violate this rule within the first 30 days of trading live, this beginning to feel like a trap.

TRADERS EXPERIENCE – YOUTUBE VS ONLINE REVIEWS

When doing research on MFF, you quickly find a lot of positive and a lot of negative reviews, with WikiFX users accusing people of posting fake positive reviews and posting fake negative reviews, it becomes increasingly more difficult to establish whether MFF is the prop firm to join.

· YouTube reviews

That being said, when looking a little deeper one will find YouTube videos with proof of price manipulation, unjustified account suspensions and terrible customer service, ones perception about MFF begins to shift, on the flip side you find one or two YouTube videos that claim the exact opposite, one trades on YouTube shares proof of a 100k live account with proof of receiving first payout, another shares his 1 years journey with MFF, suggesting that if MFF reliable enough for him to still be trading their capital for a full year since taking the challenge for the first time they will be as reliable for other traders as well, he also goes on to share he‘s tremendous challenges that he overcame to get this far in he’s journey, sharing stories of losing challenges, accounts being suspended then reinstated, only to ask for an extension and many other ups and downs, trying 3 show that it is not easy to achieve the one year milestone, again one is confused by the contradiction in traders experience based on the indifference between traders sharing their real life experiences with MFF.

· Online reviews

When taking a look at some websites, trusted or not, many positive reviews pour in on a certain review site almost every hour on the hour of every day, almost as of to try and drown out any negative reviews, now to me personally this seems a bit odd to say the least, I‘ve dealt with great companies in the past, globally recognized for great service and even then, their reviews don’t seem to roll in by the hour, I usually view this as coerced and one can't lie, but it does raise concern when most of the users are only a day or two old, on another review site you find a barrage of reviews expressing a very different perspective about MFF, I can see why traders do not trust review sites anymore, but we cannot ignore some of the older traders reviews on the negative experiences with MFF, the best way for anyone to find out would be to establish for themselves, but DO Not IGNORE SOME KEY RED FLAGS! Lets take a look at these red flags before we make a final decision.

KEY RED FLAGS

Drawdown rule

As mention before, the drawdown rule based on equity leaves very little room for traders to breathe, drawdown is probably the most common phenomena in trading, as many as 90% of trades placed by everyone, all over the world, at all levels of the profession suffer some kind of drawdown, it‘s just part of the game, every trader has at some point come across a setup that is sometimes affected by news and sometimes offers a n unfavorable spike I the opposite direction of our bias and then only continues in our favor, now in my opinion this becomes very dangerous when based on equity, simply because as previously stated if your trade is 5% in profit and then pulls back to your entry before the eventual move into profit, you will still fail the challenge even though your balance remains positive, now according to MFF, you can apply for a retake at a discount, but time is money and with this, you’ve already wasted 30 days and $84, not forgetting the tons of warning online about price manipulation.

Minimum racing days

Now as a day trader I must be honest l, there are absolutely good trading opportunities in the markets every single day, whether it be on currency pairs, indices, commodities or stocks, the big players like banking institutions, hedge funds, blue chips, stc, all have a daily agenda to move money from point A to point B, so this creates opportunities everyday but this doesn't mean you abandon your plan and take every single setup you see, at MFF traders are required to trade a minimum of 5 days, this is not all that bad but will definitely inspire over trading, even when your account doesnt warrant taking any more trades and lead to trading low probability setups and increasing the chance of failure, lets do some math, if the profit target is 8% for 30 days, and a trader has a system that provides a risk: reward of 1:2 or 1:3, the trader only needs to take a minimum of one trade per week to achieve this goal, provided the trader risks 1% to make 2% to 3% profit per Trade, which would equate to 8% and 12% profit respectively over 30 days, this rule can also largely contribute to the detriment of the trader, overtrading and taking trades out of desperation is never a good idea, and My Forex Funds tends to exploit traders by enforcing this rule, I say this because you could reach your profit target on the second or third trading day and then suffer 5% drawdown on the fourth or fifth day and lose the challenge. The odds begin stacking up against the trader.

Unregulated broker

According to MFF, they are a proud partner of Traders Global Group, let's delve into this brokerage and establish if it is in the traders best interest.

Traders Global Group is not only the preferred broker for MFF but actually owned by the same person/group of companies, something about this doesn't seem right, some might view this as a smart move but this actually gives MFF the power to manipulate trades if they so choose to, but also guarantees that MFF makes money on both sides of the trades, on the profit split as well as the spreads and commissions, not to mention perhaps taking the other side of the trade, in my opinion this is the biggest red flag, although spreads are fairly tight, commissions are said to be around $3 per lot, so MFF is making money in all different directions and seemingly not in it for the trader that much.

Traders Global Group is also an unregulated broker with zero formal registration in Canada or even the United States, remember something didnt seem right？ This is it! Trading with an unregulated broker, funded challenge or not is never a good idea, this opens you up to a plethora of problems with customer support, shady operations and ultimately loss, although a prop firm does not have to be regulated, the broker they use has to be regulated as a financial service provider, any company handling money as a third party must be licensed to do so and since the broker MFF uses to connect traders to the market is unregulated then you can be sure as the sky is blue that the business model is not in the best interest of the trader.

Conclusion

With all the controversy surrounding MFF, I feel that taking a look at the firms business model, how they operate and who they choose to operate with, I strongly feel that the negative reviews online seem to be well justified, the horror stories of price manipulation, bad service and unjustified account suspensions seem to be true, especially when considering the BIGGEST red flag, ZERO REGULATION! This fact alone should be enough to buckle down and build your own capital and trade your own money, the reward is that much sweeter, trust me.