MagnetFX Review 2025: Institutional Audit & Risk Assessment

Executive Summary

MagnetFX, operated by PT MAGNET BERJANGKA INDONESIA, currently holds a WikiFX Score of 6.99/10, indicating a moderately secure operational status within its primary jurisdiction. The entity is fully Regulated, holding active licenses from Indonesian regulatory bodies. Based on the 2025 audit data, MagnetFX represents a secure counterparty for traders within the Indonesian market, benefiting from verified local oversight. However, the brokerage exhibits potential inefficiencies regarding trading costs and cybersecurity features on its platform, suggesting it is a stable but potentially higher-cost venue associated with traditional brokerage models rather than low-cost discount trading.

Quick Take: Pros and Cons

The following checklist synthesizes regulatory data, software capabilities, and user feedback into an operational snapshot:

• ✅ Verified Local Governance: Fully regulated by BAPPEBTI and holds membership with the ICDX (Indonesia Commodity and Derivatives Exchange).
• ✅ Institutional-Grade Platform: Utilizes the MetaTrader 5 (MT5) White Label software, ensuring industry-standard execution.
• ✅ Corporate Transparency: Discloses specific entity names and office contact details, including landlines.
• ✅ Execution Quality: User reports verify no slippage or delays during order execution.
• ❌ Cost Efficiency: Client feedback indicates higher-than-average commission structures compared to competitors.
• ❌ Cybersecurity Gaps: The trading platform lacks Two-Factor Authentication (2FA) and biometric login capabilities.
• ❌ Undisclosed Trading Conditions: Critical data regarding maximum leverage and specific spread averages is missing from the public disclosure.
• ❌ Support Latency: Reports indicate extended wait times for customer service responses.

Regulatory Compliance & Safety Profile

A forensic review of MagnetFXs legal standing confirms a legitimate regulatory framework. The broker does not operate offshore but maintains a domestic presence in Indonesia, adhering to regional financial laws.

License Verification

The audit confirms two distinct regulatory tiers:

1. BAPPEBTI (Commodity Futures Trading Regulatory Agency):

• License Number: 002/BAPPEBTI/SI/05/2020
• Entity: PT MAGNET BERJANGKA INDONESIA
• Status: Regulated

1. ICDX (Indonesia Commodity and Derivatives Exchange):

• License Number: 194/SPKB/ICDX/DIR/I/2020
• Entity: Magnet Berjangka Indonesia, PT
• Status: Regulated

Regulatory Implications

The dual oversight by BAPPEBTI and ICDX places MagnetFX in a “Low Risk” category specifically for Indonesian residents. BAPPEBTI oversight generally functions similarly to Tier-2 global regulation, mandating capital residency and direct accountability to the Indonesian Ministry of Trade. Furthermore, membership in the ICDX implies that the brokers transaction flows are routed through a centralized exchange mechanism, reducing the likelihood of “B-Book” manipulation (where a broker trades against the client) and ensuring greater price transparency. The verified alignment of the corporate name (PT MAGNET BERJANGKA INDONESIA) with the license holder eliminates the risk of “clone firm” identity theft.

Trading Infrastructure & Costs

The operational environment of MagnetFX relies on established third-party software, yet lacks transparency in specific fiscal policies.

Software Architecture

MagnetFX provides its clients with the MetaTrader 5 (MT5) platform. Unlike proprietary web traders, MT5 is a globally recognized standard known for advanced charting, algorithmic trading capabilities, and multi-asset support. The software audit notes that the platform supports customizable layouts and clear fee reporting.

Cybersecurity Risk Warning: Technical analysis of the specific MT5 build used by MagnetFX reveals operational gaps. The system reportedly lacks Two-Factor Authentication (2FA) and biometric identification (FaceID/Fingerprint) for login. In the current cybersecurity landscape, the absence of multi-factor authentication creates a vulnerability vector for unauthorized account access.

Cost Structure & Efficiency

While exact spread data (e.g., EUR/USD average pips) is not disclosed in the provided dataset, user feedback highlights a commission-heavy model. The absence of specific data on leverage ratios (maxLever) and minimum deposit requirements prevents a full assessment of capital efficiency. Traders should anticipate a fee structure that may be less competitive than discount offshore brokers, likely due to the compliance costs associated with maintaining local BAPPEBTI regulation.

Analyst Note

This feedback suggests that MagnetFX prioritizes Execution Reliability over Cost Leadership. The broker appears to be a “Premium” pricing venue. For high-volume scalpers, the elevated commissions may erode profit margins. However, for institutional or swing traders who prioritize withdrawal safety and platform stability over low spreads, this feedback confirms the broker delivers on technical performance.

Final Verdict

Based on the 2025 institutional audit, MagnetFX is a legitimate, Regulated entity operating within the Indonesian financial framework. Its WikiFX Score of 6.99 reflects a strong compliance standing with BAPPEBTI and ICDX, ensuring fund safety and legal recourse for local clients.

However, the broker shows signs of operational stagnation regarding cybersecurity (lack of 2FA) and pricing competitiveness. It is best and most safely utilized by Indonesian traders who require domestic regulatory protection and are willing to pay higher commissions for reliable MT5 execution. It is less suitable for high-frequency traders sensitive to transaction costs.

For the most current regulatory certificates and real-time blocklisting status, verify MagnetFX on the WikiFX App.