PaxForex Review – Multiple Warnings Screaming Scam

In general, you understood from the beginning what this broker is all about. With their registration in St. Vincent and Grenadines, it’s not promising. However, it’s important to stay tuned to find out how to stay protected in the future. But also how to recover money if this or any other broker scammed you.

We also invite you to read our Trades Universal and PrismCapital reviews. More knowledge equals higher safety.

 PaxForex Regulation and Funds Security

As an SVG-based broker, they are not required to have a license to trade in the country. However, anywhere outside of SVG, they should have a license. Primarily, in the countries where they mainly operate. Therefore, we are checking the most reliable Tier 1 regulatory bodies accepted worldwide. For example, FCA, ASIC, CFTC, and BaFin.

Unfortunately, that research didn’t surprise us. Not only that broker is not licensed by any of these institutions. Even worse. CFTC has issued a public warning against the PaxForex scam broker. Moreover, a couple of years earlier the same move did the British Virgin Islands FSC. Take a look.

https://www.cftc.gov/PressRoom/PressReleases/8256-20

https://www.bvifsc.vg/library/alerts/paxinvestcom-limited-advisory-warning-no-18-2013-14-june-2013

After this, you know that none of your funds are safe with this investment scam. On top of that, if they promise you any fund security measures, you can forget them. Because they are not obliged to comply with any laws or regulations.

Trading Platform Overview

Some scam brokers tend to attract traders with trusted trading software. For example with cTrader or Meta Trader. Mostly because of many users sharing positive reviews, but also multi-functionality. However, traders are missing those options here. You can’t get social or copy trading features with PaxForex scam broker. Not to mention Expert Advisors’ options.

Instead, they only offer very basic web trading. It’s equipped only with basic trading tools like simple indicators and charting options. Also, traders can use news and economic calendars. Practically, nothing that licensed brokers don’t have.

Also, such a web-based platform is risky due to potential manipulations. Which is often the case with offshore investment scams. Even though they present MT4 as the platform, you can’t download it from their website. Which is quite suspicious.

PaxForex Funding Methods

Important to realize is that this broker is missing the safest payment option – cards. Their funding methods are:
 

• Bank transfer
• Neteller
• Skrill
• PerfectMoney

Deposit processing time is mostly 1 hour, except for bank transfer which takes up to 5 days. And you can expect fees there. However, for withdrawal options, you have credit/debit cards available. But also a few more e-payment solutions. Of course, all of them come with transparent payment provider fees. Thus, the processing time is 1-15 business days depending on the method.

But this broker didn’t earn warnings without a reason. Without a transparent withdrawal policy, they can scam traders as they want. According to PaxForex reviews, that’s exactly what happens. They don’t allow traders to get their profits out.

PaxForex Promotions

Another scamming tactic that this broker is using is through their refer-a-friend program. Once you bring more traders to their company they will reward you. But don’t expect it to be in cash.

Instead, you can expect a bigger trading account balance. Most likely you won’t be able to withdraw. However, even if you get some money straight away it is quite close to the MLM scheme. Don’t fall for cheap tricks.

Account Types Available

With a minimum deposit of only $10, this offer looks quite attractive. Thus, the broker doesn’t provide any security. As shown above, they earned multiple warnings from regulators. Not without a reason. Anyway, traders can choose between 4 account types:

• Cent             $10
• Mini              $100
• Standard       $2.000
• VIP               $10.000

Advertised spreads for Standard and VIP accounts are starting from 0.4 pips. But, PaxForex reviews say the opposite. This broker has quite higher spreads than advertised. Which is another misleading fact.

On the positive side, traders can choose a demo account first. Still, you are exposing your personal information to the swindler. Which never ends well.

How the Scam Is Undertaken

The broker will lure traders everywhere. Whether through marketing campaigns or social media. They even started using trusted platforms like LinkedIn. But the most effective one is through a referral program.

All problems start at the moment when traders request withdrawals. That’s where they can face issues like missing documentation, AML laws or non-existent fees and taxes. Generally speaking, they all end up with frozen accounts and no contact from the broker again.

PaxForex Summary

PaxForex is an offshore entity with multiple warnings from regulators. But the most important one is from US CFTC. With untrusted software and uncompetitive trading conditions, they didn’t become a good choice for anyone.

Let us know about your experience with this broker. If they stole money from you, let us know. Don’t feel ashamed. But important to know is that our fund recovery team can assist you to get your money back. Get in touch today.

FAQs About PaxForex Broker