I always have my students call me by my first (given) name. Currently, I'm teaching in Asia and the students have the local custom of calling everyone as Mr. Givenname or Miss Givenname (yes, even if she is married - strange, I know). This is completely different from my native culture but I bring my culture with me...for a reason.
I have no desire to introduce the formality of calling me in any sort of official way. I feel it distracts from the importance of focusing on the matter of education. As long as my students do not refer to me in a rude way, I'm quite flexible. I do, however, encourage (without insisting) them to use simply my first name, without any title, rank, or any other identifier. This is true not only for my graduate students but for my undergraduate students as well.
Others in my departments, most notably Asian teachers, do prefer to have the greater level of formality. To each their own. It really does come back to culture. For me, I allow my students to follow which ever culture they prefer, but I do let them I know I don't want formalities to interfere with the educational process in any way.