BMFN is this a scam? Review and Customers Reviews

BMFN – is a product of the BMFN (Boston Merchant Financial) Limited company of the same name, which opened back in 1998 in Great Britain. Broker offers No Dealing Desk trading, as well as a variety of affiliate programs.

Is it profitable to cooperate with a provider? Is BMFN a scam or a decent way to make money on assets? Let’s try to find out in this review.

 

Terms of trading with BMFN

BMFN suggests starting forex trading with a small deposit of $50. You can open a trading account right away or try your hand at a training terminal (the time of free use is not limited, no real investments are required, all calculations are made with virtual currency units). In addition, legal entities are connected to the so-called clearing account, which mitigates risks by providing insurance.

Leverage is available. It is set according to the account type and can be floating (up to 1:400) and fixed – 1:200. The latter value is set by default. Spreads, according to the provider, an average of 1.4 points, which, in fact, not so little. Margin Call is set at 110%, Stop Out – 100%.

Types of accounts become available for viewing after registration. First, we need to choose what kind of account is required:

• individual (personal);
• corporate (for legal entities with several representatives);
• joint (say, when several family members or friends manage the account).

There are restrictions for some countries (they are simply not in the list of the questionnaire), but the Russian users have access to the platform BMFN. After that you can choose a real or demo (demo) account. There are no separate varieties, only a choice of platform. To open an account, you will need to verify your profile by providing information about your place of residence, screenshots of your passport, receipts with a visible registration address and a photo of your bank card/payment system account.

Interesting point: The user agreement is presented only in English and needs to be signed using a special form that creates an electronic signature. Then we choose a platform and move on to trading.

From training materials presented only a kind of knowledge base – Forex Education Center, the center contains articles about the strategies, terminology, features of terminals, etc. (Forex Trading Training).

Analytics is also the bare minimum: only the economic calendar and online exchange rates. Communication with support is by phone (there are several dedicated lines of offices in Russia, Australia, UK, Bulgaria and Canada), e-mail, online chat on the website bmfn.com. In addition, there is a FAQ section (“Frequently Asked Questions”) with basic information.

 

Platform bmfn.com

BMFN works with three platforms:

• MetaTrader 4. Popular terminals with an arsenal of 30+ technical indicators, 3 types of charts (line, bars, candlesticks), signals, alerts, trading advisors and automatic robots and many other options. Programs are available for downloading to PCs, smartphones and web-version.
• UniTrader. New platform with 100+ Forex and CFD instruments, built-in web-browser and server-side trader-stop function (moving stop-loss following the contract price with some lag). Mobile and computer version in web-format (without installing it on the device with the ability to work offline).
• WebTrader. The second most popular platform after MT4. It does not yet reaches the leader by the number of assets and trading instruments, but it works stably and generally satisfies the user’s needs. It is presented only by the web-version. For security purposes every user is verified by electronic signature and transactions are performed through the SSL-protected channels.

Broker quotes

BMFN offers more than 80 assets (of which only 23 currency pairs). It is difficult to assess the accuracy of quotes. On the one hand, the broker writes that it works on the NDD model, which excludes its intervention. On the other hand, the user agreement says that the company has the right to buy/sell currencies and contracts anywhere and at any price. And it has no financial interest in increasing your profits.

 

BMFN demo account

BMFN offers three demo accounts to choose from:

• DemoCFD (contract trading);
• DMAD Demo (forex and contracts);
• DemoFX (forex).

All of them are available in PC and mobile versions. However, you will need to register on the site bmfn.com. However, at this stage it is not yet necessary to verify your identity. There is no time limit on the use, and in the same account you can then open a trading account for real currency.

Important pointWhen trading in the demo-mode, the efficiency is always higher than in the market conditions, because the broker needs to get you interested and motivated to deposit the account. That’s why we recommend you to evaluate only your possibilities, but not the quotes and the peculiarities of the charts.

 

Mobile application

BMFN mobiles are portable versions (smartphones, tablets) from UniTrader and MT4. The first one is available only on Android, the second one on Android and iOS. The same functionality is offered as in the web version:

• View quotes, history and statistics.
• Order creation and asset trading.
• Technical analysis tools.
• Settings and support for the helpdesk.

The software is downloaded from the Google Play Market and App Store.

 

Bonuses at BMFN

The top-up bonuses, which have been active in BMFN for a short period of time, are not available at the moment. All that the client of the company can count on are rewards for participation in affiliate programs. There are quite a few of them:

• Referral program. You earn a percentage of transactions that came from your unique link to new customers of the service (link can be placed on your website, blog, chat, social network page and other legal resources).
• “Introducing Broker.”. You create a simple website for free, with which you attract a new audience to BMFN. You earn money from each trader, as in the referral program.
• White Label and Omnibus White Label (for legal entities). Sale of broker’s financial products and earnings on commission from them.
• Clearing account. Insurance of large assets of organizations.
• “Money Manager.”. You act as a trader to whom users entrust their assets (investments).

The details (premiums, agreements, etc.) are not specified for some reason, which is strange for such a serious organization, which BMFN positions itself to be. It is not possible to find out more only after verification (we remind you that you will have to upload a lot of documents and agree to the broker’s terms, using an electronic signature created in a special online service).

 

Deposit and withdrawal

As announced on the website bmfn.com, there are about 12 ways to deposit and withdraw currency: Mastercard, Neteller, Skrill, VISA, WebMoney, Bank Wire Transfer, China Union, etc., – which may be active/blocked based on your region. The minimum amount for deposit and withdrawal is the same – 50 U.S. dollars. Term of the deposit – 24 hours from the date of confirmation of the transaction, but with payments all much more difficult.

First, you will need to wait until it will be allowed to send a withdrawal request (for example, for bank cards it is at least 30 calendar days). Then pass re-verification and wait for the results of verification (no timeframe is specified). Methods of deposit and withdrawal must match, as well as details of the account owner. Fees of payment services you pay yourself. And if there are no fees for depositing uk. BMFN does not charge any fees, you will pay $50 for withdrawal.

 

Complaints about the BMFN

The reviews about BMFN are contradictory and do not always look true. So, there are users who loudly resent the deception on the part of the broker.

There are also stories about the allegedly gigantic profits with a reliable NFA license (an obvious deception – the broker himself on the homepage says that he is not regulated by this jurisdiction).

And only on one forum we found a discussion more or less similar to the truth. In it, traders evaluate the advantages and disadvantages of the provider: they talk about outdated software, “freezes” and low earnings. Claims about payments also exist. However, the reviews are also quite old: 2011-2017.

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Regulator of the broker Boston Merchant Financial Limited

Boston Merchant Financial Limited (BMFN Ltd.) operates under license number 40202 from the Vanuatu regulator, VFSC (Vanuatu Financial Services Commission). The link to the confirmation in the official register of the organization is on the main page bmfn.com. However, if you open the details page, for some reason there is no address for the location of the broker. There is also no information on the regulator’s website. This is suspicious, given the designated status of the service provider.

bmfn.com User Agreement

The BMFN User Agreement is available only in the Personal Area. Moreover, it is written in English, so it will be difficult for Russian users who do not speak this language to read the terms and conditions. This does not speak in favor of the broker’s honesty. We will try to analyze the most important provisions, so you can get an idea of the document. For example, clause 4 states, among other things, that you must execute margin requirements and pay additional margin at the first request of BMFN (usually required in case of sharp exchange rate fluctuations).

You are responsible for any losses you incur as a result of opening trades through the broker’s services. In addition, the latter has the right to impose any restrictions: reduce/increase the number of open positions, refuse to create an order, etc. (п. 5).

Scalping on the platform is prohibited. Any deal of less than 3 minutes duration is accepted as an attempt of scalping and is cancelled (clause 6).

According to clause 9 of the policy, any of your funds and assets are made available to the company and may be used to secure transactions, provide credit, execute margin calls and other actions – both for you and for other traders. The delivery of the deposited currency must be made within twenty-four hours.

Your account is closed unilaterally in the following cases:

• Death or a court order of incapacity.
• Opening bankruptcy proceedings.
• Seizure of any of the financial accounts.
• Insufficient security of one of the trading accounts on the broker’s site.
• Failure to provide the information requested by BMFN security.
• Any situations in which the provider discovers risks to himself.

All of these reasons are set out in clause 10 of the document. If any of the described situations occur, all open trades will be closed. Without prior notice and on terms favorable to the broker.

It also says that buying and selling currency can be done not only on the interbank but also on any other market – you compensate all costs. For accounts from which there are no transactions for a month or longer, a monthly fee of 20 c.u. is introduced. – They are considered inactive (item 12).

You must also reimburse the supplier for the cost of converting your country’s currency to USD, which is the primary currency (item 15).

You are deemed to have been notified of the BMFN requirements if a broker’s email has been sent to your email address (clause 26).

 

Is BMFN a scam?

Terms and conditions of the broker BMFN contain a number of controversial points, which can be interpreted as an attempt to deceive:

• The need to accept the user agreement, which cannot be read anywhere before registration. It appears in a window, written in small and English (you can miss the important points). It also requires an electronic signature.
• Large withdrawal fees (50 euros for each operation) and the need to keep the balance at least a month before requesting the withdrawal (and we remember that even if in this case, not to trade, the broker will take its place, because the account will be recognized inactive and will be charged a fee of 20 cu).
• Lack of specificity in describing affiliate programs and company address.

In addition, there are almost no credible reviews about the provider. And still there is no confidence that BMFN is a scam. It seems that the broker simply overstates its status: working since 1988, it cannot provide so little information about itself. But its license is confirmed by the regulator’s registry, so the control over the service provider is still in place. What’s more, there are no strict deposit and withdrawal requirements, we are given freedom of choice and access to all features no matter how much we deposit. On the whole, BMFN inspires confidence. However, we do not recommend working with the service for large amounts.

 

Conclusion

BMFNIn our opinion, it offers quite favorable trading conditions (except for wide spreads): a small entry threshold, customizable leverage, no transaction fees, NDD model. But at the same time it creates a lot of bureaucratic obstacles. In particular, the system of account verification at the stage of creating a demo account: why would the user provide his personal data (including passport data), if he only plans to evaluate the possibilities of the software? And the outdated terminals (here we rely on the comments of the forum) are hardly able to attract the modern public. Add to this the wide spreads, which the broker considers optimal, and the meager choice of assets. So the conclusion is inevitable: the company is behind the modern trends. We can only hope that BMFN will change, otherwise the company is unlikely to compete with a large number of offices, many of which are fraudulent, but they know how to attract clients.