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Monfex.com Review 2019 – Pros and Cons of Trading on Monfex
- high leverage
- stop loss / take profit order
- major altcoins tradable
- high security
- supports anonymity
- US traders not allowed
- Too few order setting for some traders
Monfex is a relatively new crypto broker operating since 2018. The platform offers Bitcoin margin trading with up to 50:1 leverage. This makes the broker quite appealing since there are only very few good Bitcoin margin brokers.
The Broker is operated by a company governed by the laws of Saint Vincent and Grenadines. Exotic places are normal with crypto brokers, because the whole field of financial trading is legally difficult in many countries, especially when offering leverage products. Compare BitMEX, PrimeXBT and co, which are all located somewhere in the Caribbean or in Hong Kong.
To mention it right upfront – unfortunately this broker is not able to offer their service to traders from the United States. The legal situation in the different US states is often simply too critical for margin brokers.
In most other countries, however, Monfex can be used without problems. As you can see in our screenshot of the signup form you need to select your country of residence, and in the case of a country they cannot serve an information about that will appear. Phone number isn’t required at this point, it’s optional.
According to their own statement Monfex works with big cryptocurrency exchanges providing Monfex with liquidity and great pricing which they can pass to their users. This elegant solution ensures a stable trading system and enables the crypto margin broker to offer high leverage.
Just like other Crypto Brokers you can signup and trade on Monfex without ID verification. You could theoretically use another name and an anonymous email address, however you should be aware that the broker reserves the right to claim an ID verification at any time. And if the ID then doesn’t fit the name in your account you might have a problem. But generally speaking you just need to provide your name, email and password in order to be able to trade on Monfex.
Monfex is a crypto margin broker on which you generally trade CFDs with leverage (Contracts for Difference). So on Monfex.com you therefore trade cryptocurrencies based on rising or falling US dollar exchange rates in so-called long and short trades. For these trades, leverage of up to 50x can be used. This means that Monfex is not a currency exchange where you can directly buy or sell cryptocurrencies, like exchanging USD into BTC with the aim to withdraw BTC. Simply put, you use the broker to multiply BTC or one of the altcoins that you already own – classic professional CFD trading.
Currently the broker offers margin trading for the following 12 coins:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Dash (DSH)
- Bitcoin Cash (BCH)
- Monero (XMR)
- Zcash (ZEC)
- OmiseGO (OMG)
- Ethereum Classic (ETC)
The Trading Platform
The Bitcoin Margin Broker accepts 3 different currencies for deposits: Bitcoin (BTC), Ethereum (ETH) and USDT (Tether). The yellow deposit button leads directly to the deposit area. In addition, the Deposit window opens automatically when you switch between the 4 different currency accounts in the top left corner.
Minimum deposit: 0.001 BTC.
Unlike many other brokers, Monfex has its own charting tool. Many other brokers only use the chart from Tradingview.com. The chart of Monfex.com offers time frames from 1 month up to 10 seconds.
In general the charting tool offers all possible indicators and drawing tools for a detailed technical analysis. The tool works very intuitively. The indicators can be selected and changed simply by clicking on them. Settings for indicators can be adjusted at will, from time frames and colour settings to insertable comments.
What we also like about the trading platform is its simple, straightforward design. It offers a good overview of all functions.
One thing that could be improved in the future would be more flexible widgets. Depending on the screen size, you may need to scroll down in the “Trade” widget to see all the setting fields. This could be remedied by the possibility to adjust the chart window above. However, if you assume that most professional traders sit in front of a bigger monitor, it’s ok, then nothing has to be scrolled.
Putting Orders with Leverage
With Monfex, the usual leverage switch or an extra field for adjusting the amount of leverage, which we know from other platforms, is completely missing. They have a bit of a different approach, a more simple one than other platforms: Traders always have the preset maximum leverage at their disposal – which is 10x by default, so you should mitigate risk by choosing the right position size.
Minimum position size: 0.01 BTC (incl. 10x leverage)
Our Test Trades on the 1 Minute Chart
To test the margin broker we sent a bit more than the minimum deposit of 0.001 into our account. This is the minimum margin which is needed to open the minimum position size of 0.01 BTC. So you can’t set a lower position size than that and this position of 0.01 BTC already includes the 10x leverage. We chose the 1 minute chart to quickly check the functionality and get one or two trades closed within less than an hour. In the pic below you can see how the indicators we used look like.
If you stay in front of the computer you can open a position just by setting the position size (Amount BTC field in the left bottom corner) and press Buy or Sell and close the position manually by clicking the “close” button in the positions section. If you want the position to get closed automatically you also fill the Advanced orders fields exactly with your Stop Loss and Take Profit price. You can also use the “only open when price is” function. In this case the order will be pending and you can see it in the “Orders”section. Otherwise your order will be filled right away an you can see the level where you opened your position by the red dashed line in the chart.
Your Stop Loss and Take Profit prices will also be shown by a red and a green dotted line. The white line is the current market price, the sell price to be more precise. In our example you see the current price line (white dashed) slightly below the take profit price. (Our example doesn’t show a good trade setup because our stop was further away from the entry than the take profit, which you should avoid. But it was just a quick platform test, so never mind.)
The Take profit order in this example wasn’t executed yet, because in our case it would be a Buy order to close the short – and because of the spread (at this time about 15 to 20 USD) the buy price hadn’t reached the green line yet. You can’t see the Buy price visually in the chart, you just see it below next to the BUY order button. Just to explain, in case you’re wondering how the current price line can have passed the take profit without an order execution.
As you can see in the image the inscriptions of our price lines are all cut off a bit (left in the chart), which is a bit of a blemish, but nothing serious. As mentioned earlier the widgets can’t be adjusted in size which would be quite handy to get a better view of everything. But it’s also not a big deal, depending on your screen size. For us it worked well.
This very simple approach of how you set orders on this broker site is something we like a lot about them. Once you’ve put a couple of trades you’ve got a routine and see how simple it is to use the platform. This is why it might be especially suitable for margin trading beginners (please remember to always start with small amounts till you get overall profitable and more confident).
So our trade went well, we’ve got a small profit and the overall user experience was quite pleasant due to the simplicity of the site. We’re going to use it for some more trading activity in the next time to see if there will be more details to report.
Leverage up to 50x
The 50-fold leverage advertised by the Bitcoin margin brokers is not immediately available for new accounts. By default, the leverage for new accounts is set to 10x. So you can “only” trade with a 10x leverage at first. This is a security measure that comes across very sympathetic. Especially high leverage may sound tempting, but it’s hardly usable – especially not for inexperienced or average traders. The risk of loss is simply too high and of course increases with increasing leverage. Therefore, Monfex has the sensible presetting of lower default leverage, which can be increased on request. So if you insist on 50x, you need to contact the support.
Monfex follows the industry’s highest security standards by securing Bitcoin deposits in cold storage. In this way, hackers have no chance of getting to the Bitcoins if they succeed in hacking the platform.
In addition, the broker naturally supports 2-Factor Authentication, making unauthorized access to a user account virtually impossible.
Users of the platform can withdraw their credit at any time. The payout must be requested in the account simply by filling out a short withdrawal form.
Monfex is quite an interesting new option in the field of Bitcoin margin trading, where the selection of Bitcoin brokers with high leverage is limited. A demo mode would be cool, but it’s also not a big deal to take a few bucks and test live trading. If this is something you don’t have you’re anyways not at the right place with a margin trading broker.
Although the platform offers a leverage of up to 50x, responsible trading is strongly discussed. Successful traders and satisfied customers are also in the interest of the company. The academy area of the website offers a lot of information on responsible professional and profitable trading.
This leads us to the final remark that the broker should nevertheless only be used by professional traders who definitely know what they are doing.