Is PaxForex Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with PaxForex try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether PaxForex is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker PaxForex
The PaxForex brokerage was incorporated in 2010. The company provides classic OTC (over the counter) trading services to both novice and professional traders. The PaxForex team consists of former professional traders who rely on technological developments that allow them to successfully compete with other European brokers. The broker's trading toolkit is represented by currency pairs, CFDs (contract for differences) on stocks and metals, and cryptocurrencies. The company operates under the jurisdiction of Saint Vincent and the Grenadines Islands (SVG FSA).
| 💰 Account currency: | USD, EUR, GBP (USD for the cent account) |
|---|---|
| 🚀 Minimum deposit: | From $10 |
| ⚖️ Leverage: | Up to 1:500 |
| 💱 Spread: | From 0.4 pips |
| 🔧 Instruments: | Currencies, assets of stock and commodity markets, cryptocurrencies |
| 💹 Margin Call / Stop Out: | 10%/5% (55%/20% for cent account) |
Pros and cons of PaxForex
👍 Advantages of trading with PaxForex:
•availability of cent accounts;
•relatively small spreads;
•expert assistance and support to create your own affiliate network.
👎 Disadvantages of PaxForex:
•a commission charged for each withdrawal. The broker does not charge his commission, but also does not cover the costs of the trader;
•technical limitations when working with advisors;
•work according to the hybrid A-Book/B-Book scheme;
•no investment programs;
•offshore regulation, no insurance fund.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is PaxForex Regulated? Broker’s license
Security (Protection for Investors)
Information
The PaxForex broker operates under the jurisdiction of Saint Vincent and the Grenadines Islands.
This broker is monitored by that official regulator; therefore it is assumed that it is accountable and responsible to its clients and will fulfill its obligations.
👍 Advantages
- Provided with SSL system (Cryptographic Secure Communication Protocol)
👎 Disadvantages
- Offshore regulator
- Complicated trader Complaint system
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by PaxForex, which you can see below.
Traders Union analytics has reviewed PaxForex trading conditions for explicit and hidden commissions. The company does not have commissions for a fixed trade turnover; nor does it charge a fee for withdrawing funds. The spread size floats, and the minimum value depends on the type of account.
| Account type | Spread (minimum value) | Withdrawal commission |
| Cent | From $2.4 | Yes (system’s commission) |
| Mini | From $14 | Yes (system’s commission) |
| Standard | From $4 | Yes (system’s commission) |
| VIP | From $4 | Yes (system’s commission) |
Brokers that are similar to PaxForex
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of PaxForex conditions with its closest competitors.
Comparison of PaxForex with other Brokers
| PaxForex | RoboForex | Pocket Option | Exness | Octa | FxPro | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MobileTrading, MultiTerminal, Allpips |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MetaTrader4, MetaTrader5 |
MT4, MobileTrading, MT5, cTrader, FxPro Edge |
Min deposit |
$10 |
$10 |
$5 |
$10 |
$25 |
$100 |
Leverage |
From 1:100 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 0.3 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0.6 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
No deposit bonus |
$7 |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
PaxForex is a universal broker for active trading, which is perfect for manual trading and use of classic strategies without using scalping technologies.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
The Octa broker has tried to adapt its conditions as much as possible to the various trading strategies used by traders. However, at the moment the company is more focused on active market participants, rather than passive investors.
FxPro is a reliable broker company that offers market access to all traders, regardless of their level of knowledge and experience. Broker's clients are protected from negative balance; their activities are carried out in comfortable conditions and with competent professional support.
Conclusions
PaxForex cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.