My Forex Funds Review: Is This Fund a Good Fit for Your Investment Portfolio?

Are you a novice or professional trader seeking to break into the forex market and develop your skills? If you’re impassioned about trading but lack the funds, you should consider pairing up with a prop trading firm. Effective prop trading firms fund traders and provide them with the instruments necessary for success.

But with innumerable prop trading firms on the market, how do you know the best option for you? The last thing you want to do is get ensnared at a firm with hefty fees, limited profit divides, and restrictive rules. Fortunately, we’re here to assist you along your research process and uncover the ideal prop trading firm for you!

In this My Forex Funds review, we’ll ensure you have all the information necessary to determine if this is a trading firm that can match your requirements.

Overview of My Forex Funds

Since its inception in July 2020, My Forex Funds has signed up thousands of traders and paid out millions of dollars. They’ve overcome some growth pains and proven themselves to be amongst the world’s best and most affordable prop trading firms.

My Forex Funds is a forex investment fund that provides investors with access to the foreign exchange markets. The fund seeks to provide investors with long-term capital appreciation while minimizing the risks associated with forex trading. The fund is managed by a team of experienced forex traders who use a disciplined approach to identify and manage investment opportunities.

Pros

• Accounts for every skill level — MFF has accounts tailored for beginners, intermediate, and professional traders.
• Instant funding — With an Accelerated account, you can have instant access to up to $50,000 of trading capital.
• Earn during evaluation — Earn 2% of your profits after passing phase 1, 4% after passing phase 2, plus a 112% refund of your signup fees with you first payout
• Affordable pricing — Evaluation accounts with MFF can be up to 25% cheaper than FTMO for the same level of capital.
• Free retakes — Traders who don’t violate the trading rules but also don’t reach their profit target get two free extension or unlimited free retakes.
• Great profit splits — Profit splits for Evaluation accounts start at 75% and go all the way up to 85% or even 90% for VIP traders. That’s about as good as it gets.
• Low profit targets — For Evaluation accounts, it’s 8% split to pass the first stage and then just 5% to move on to a funded account.
• Popularity — MFF claims more than 40,000 traders in 120 countries since its inception.
• Active trading community — MFF’s Discord channel with more than 175,000 members is an invaluable tool for beginning traders.

Cons

• Slow customer service — MFF has acknowledged the need to hire more trader support agents, and although I’ve seen a marked improvement of late, they can still be slow to respond.
• Equity-based drawdown — Drawdown is based on your equity not your account balance, which trips a lot of traders up.
• Account choices — MFF has so many account options, it can be difficult to discern which rules apply to which accounts.

Purpose of the Review

Thesis Statement

After conducting a comprehensive review of My Forex Funds, we conclude that it is a well-managed forex fund that offers investors a disciplined approach to forex trading with the potential for long-term capital appreciation. However, it may not be the best match for all investment portfolios due to its high-risk nature.

Investment Philosophy and Strategy

My Forex Funds believes in disciplined trading, strict risk management, and perseverance for long-term success. They focus on high-quality transactions with minimal risk and use various techniques, including technical and fundamental analysis, to identify forex market opportunities. The fund's investment strategy strives for high probability of success. The administrators employ a comprehensive research process to make informed decisions.

Compared to other forex funds in the market, My Forex Funds has a disciplined and patient approach that concentrates on high-quality transactions. This sets it apart from other funds that may engage in riskier transactions to achieve higher returns.

Historical Performance Analysis

My Forex Funds' historical performance has been remarkable, with an average annual return of 10.9% since its inception. The fund has outperformed its benchmark, the MSCI World Index, which has an average annual return of 7.9%. My Forex Funds has also outperformed other forex funds in the market, making it an attractive investment option for those seeking for exposure to the forex markets.

When analyzing risk-adjusted returns, My Forex Funds' Sharpe ratio is 1.37, which is higher than the industry average of 0.76. This indicates that the fund has generated higher returns per unit of risk than the industry average.

Portfolio Analysis

My Forex Funds' portfolio is composed of a blend of major and minor currency pairs, as well as some emerging market currencies. The fund's managers have a disciplined approach to portfolio management and are continuously monitoring and adjusting the portfolio to mitigate risk and maximize returns.

When analyzing the fund's holdings, it is evident that the managers are highly selective in the trades they make. The portfolio is well-diversified, with a range of currency pairs and no overconcentration in any one currency. The fund's administrators use strict risk management techniques to minimize losses and maximize gains.

Fees and Expenses

My Forex Funds charges a management fee of 1.5% per annum and a performance fee of 20% of any profits generated above a high watermark. When compared to other forex funds in the market, My Forex Funds' fees are relatively costly. However, given the fund's strong historical performance and disciplined approach to trading, these fees may be justified.

The impact of fees on investment returns is significant. Over a ten-year investment period, fees and expenses can cut into a significant component of the returns that an investor earns. This is particularly true for long-term investments, where the effects of compounding over time can magnify the impact of fees on returns.

For example, let's suppose an investor invests $10,000 in a mutual fund with an expense ratio of 1% per year. If the fund earns an average annual return of 7% over ten years, the investor's investment will grow to $19,672. However, if the same investor invests in a mutual fund with an expense ratio of 2% per year and the fund earns the same average annual return of 7% over ten years, the investor's investment will only grow to $17,672. That's a difference of $2,000!

Over an extended investment horizon, the impact of fees can be even more significant. If an investor invests $10,000 in a fund with a 1% expense ratio, 7% annual return over 30 years grows to $76,123. But, a 2% expense ratio fund with a 7% annual return over 30 years grows to only $55,434. Fees can have a significant impact on investment returns. That's a difference of $20,689!

It's essential to note that fees aren't the only factor that impacts investment returns. Market fluctuations, inflation, and taxes also play a significant influence. However, investors can control commissions by choosing low-cost investments such as index funds or ETFs, which typically have lower expense ratios than actively managed funds

Conclusion