Pacific Financial Derivatives Review
Pacific Financial Derivatives is an established New Zealand brokerage that offers Forex amd CFD trading online via the MetaTrader 4 (MT4) platform and FIX API. The brokers trading conditions and fees are very competitive whilst they have a variety of convenient funding options. However, they do not have a trader’s academy to help improve clients trading skills and knowledge. There is also no daily market analysis provided.
Pacific Financial Derivatives Review, Pros & Cons
- Regulated brokerage
- User friendly MT4 platform for multiple devices
- FIX API
- Variety of account funding methods
- No USA clients
- No Cryptocurrencies for trading
- Expiring demo accounts
- No daily market analysis
- No trader academy
In this detailed Pacific Financial Derivatives review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Pacific Financial Derivatives Overview
Pacific Financial Derivatives (PFD) is an online brokerage that is owned and controlled by a Japanese investor, who has rich experience in running similar large derivative institutions in Japan. PFD offer online trading of Forex and CFDs via the MetaTrader platforms.
Founded in in 1999, the broker is based in Auckland, the financial centre of New Zealand where the financial market opens first in the world. PFD blends innovative trading technology with hassle-free trading execution and exceptional customer service.
The broker has deep liquidity pools for quality trade executions. There are no restrictions on trader strategies, no minimum deposit requirements and leverage of up to 1:300 is available. They operate a no dealing desk brokerage model with competitive commissions and spreads.
Pacific Financial Derivatives Regulation
PFD is a company registered in New Zealand with the registration number 973842. It is regulated by the Financial Markets Authority (FMA) as a financial service provider. The license number is FSP 28944.
FMA takes a risk-based approach to monitoring, meaning the extent of supervision varies depending upon their priorities and the nature of businesses. It can range from a full onsite inspection through to information requests and desk-based reviews. As a minimum, FMA will seek assurance that PFD is complying with the basics such as:
- PFD is meeting the minimum standards for licensing.
- PFD is complying with the conditions attached to its licence.
FMA will also assess PFD’s conduct generally as a licence holder and check PFD is complying with key legislation such as the Financial Advisers Act 2008, the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and the fair dealing provisions within the FMC Act.
The company was initially authorized in 1999 by the former Securities Commission as an Authorized Introducing Broker with the NZ Futures & Options Exchange and then as an NZX Futures & Options Participant Firm until NZX ceased oversight of F&O participants in Sept 2011. In 2011, the Financial Markets Authority accredited the Company as an Authorized Futures Dealer.
PFD is a member of the Financial Service Provider Register and member of the Financial Dispute Resolution (FDR scheme) in New Zealand. Clients funds are held in segregated accounts away from the brokers funds so that they cannot be used for any other purpose such as business running costs.
Pacific Financial Derivatives Countries
PFD’s policy is to accept residents from all countries other than UN and OFAC sanctioned countries and the USA. Pacific Financial Derivatives broker features and products mentioned within this Pacific Financial Derivatives review may not be available to traders from specific countries due to legal restrictions.
Pacific Financial Derivatives Platforms
PFD provide traders around the globe with one of the most popular trading platforms which is MetaTrader 4 (MT4). MT4 was developed by Russian software company MetaQuotes and is widely regarded as a very user-friendly trading platform with an abundance of built in trading tools to assist traders with their chart analysis and trading. MT4 has an intuitive interface making it suitable for new traders whilst having enough features and functionality to satisfy the more seasoned investors.
MT4 is available for desktop or can be launched directly within your web browser without needing to download or install any additional software. Furthermore, there is also the MT4 mobile application for iOS and Android devices which enables users to access their trading account and trade whilst on the go, provided there is an internet connection.
Some of the MT4 platform features include:
- Real time bid/ask quotes in the market watch window.
- Fully customisable interface.
- Trading strategy templates.
- Multiple timeframes, charts & order types.
- Technical indicators & drawing objects for chart analysis.
- Automated trading via expert advisors (EAs).
- Strategy tester for testing EAs on historical data.
- Alert notifications via email, pop-ups & SMS.
- Access to a wide range of markets.
The MT4 MultiTerminal is designed for managing multiple forex trading accounts simultaneously. It provides a practical approach for money managers and traders who handle multiple concurrent accounts. MT4 MultiTerminal is a real-time trading platform, which enables introducers and money managers to simultaneously observe the system at the same time as their investors.
Some of the key features of the MT4 MultiTerminal include:
- Managing a set of client accounts.
- Multiple order types. All normal types: Market, Stop, Limit.
- Order execution capabilities. All unique order types accepted: Trailing Stop, Close by and Close all.
- Receiving quotes and news in the online mode.
- Multilingual support.
- Works with securities of Forex, CFD, spot metals, shares and futures.
- Single-Click, Single-Platform, Multiple Accounts solution.
PFD offer a FIX API for professional traders who need direct market access (DMA) and would like to run their own trading applications. The Financial Information eXchange (FIX) protocol is an electronic communications protocol initiated in 1992 for international real-time exchange of information related to the securities transactions and markets. PFD supports limited FIX messaging version 4.2.
The PFD FIX API features include:
- Direct access to core aggregation engine.
- Direct access to price stream.
- Compatible with MAM.
- FIX version 4.2.
Pacific Financial Derivatives Trading Tools
PFD provide the powerful MetaTrader platform which should have more than enough tools already built in to satisfy most retail traders. They also offer FIX API solutions for more complex trading requirements. Despite that, they do not have an additional trading tools such as trading calculators, sentiment analysis, currency convertors, etc.
Pacific Financial Derivatives Education
PFD have a forex trading glossary where you can find many technical terms used commonly by brokers and traders.
On the PFD website there is a useful guide that gives a basic introduction to forex trading. It covers topics such as the forex market, trading platforms, trading strategies, trading psychology and more.
The economic calendar displays the latest news releases along with the anticipated impact that they can have on different markets. This can be used as part of a fundamental analysis to help anticipate in what direction the markets will move and why.
Pacific Financial Derivatives Instruments
PFD have the following instruments for trading online:
Pacific Financial Derivatives Accounts & Fees
PFD clients can trade Forex and CFDs from one account with leverage of up to 1:300. There is no minimum deposit requirements and the minimum trade size is 0.01. All accounts can be used with FIX API and have market execution.
For this account type, PFD have no minimum deposit requirement and no commissions are charged. Instead, the broker covers costs by increasing the spread (mark-up). The maximum leverage is 1:300 unless the account is greater than $5,000 in which case the maximum leverage is reduced to 1:100.
This account also has no minimum deposit requirement and slightly lower spreads. The maximum leverage on this account is 1:100 with a commission of $1 charged per side per lot.
This account is similar to the PFDPro account although it requires a minimum $1,000 deposit.
Islamic accounts are swap-free trading accounts intended for traders who use trading systems that do not take into account the impact of swaps or those clients who cannot use swaps owing to their religious beliefs. Essentially, Islamic accounts are free from rollover interest on overnight positions regardless of the position volume.
- No interest/swap charge on overnight positions.
- Administrative fee will apply for overnight positions held for over 3 days.
- Competitive spreads.
- Leverage up to 1:300.
- Fast market execution.
- No trading restrictions.
- 24/5 dedicated Client Support.
Demo accounts can be used to test your trading strategies in a real-time environment and familiarize yourself with the trading platforms without any risk and no obligation. PFD offer a demo account with $50,000 virtual margin deposit and access to a fully functional version of PFDTrader. The demo account is limited to 15 days. This is disappointing as many brokers offer non-expiring demo accounts.
There is a spread comparison tool on the PFD website where you can compare spreads between PFDPro and PFDTrader to determine the account type ideal for your trading strategy. Data feeds presented are live feeds directly from PFD’s trading platform.
Pacific Financial Derivatives Support
PFD provides continual 24-hour support from 10:00 am Monday New Zealand time (11:00 PM Sunday London time, 6:00 PM Sunday New York time) through 10:00 am Saturday New Zealand time (11:00 PM Friday London time, 6:00 PM Friday New York time). The support team can be reached via online chat, telephone and email. There is a contact form on the website if you wish to send them a message.
Pacific Financial Derivatives Deposit & Withdrawal
PFD have a variety of convenient methods for depositing and withdrawing funds from your trading account. This includes bank wire, credit/debit card and online payment systems including Neteller, UnionPay, Skrill, Local Deposits, iDeal, Sofort Banking, Przelewy, Giropay and POLi. Please note that some methods may only be available to specific countries and not all are available for both deposit and withdrawal.
Some fees may be charged when using certain payment methods. Withdrawal requests are processed within the same day or next if outside working hours. The withdrawal time can vary depending on the payment provider and method. Bank transfers may take a few business days to clear whilst some methods can be instant.
Some payment systems may have transaction limits, restrictions, and requirements which are indicated on their respective websites. You may need to verify your account to remove limits on particular methods in some countries. PFD strictly does not accept third-party payments. All funds deposited into your trading account must be under the same name as your PFD trading account.
Accounts can be opened in USD, GBP, EUR, JPY, NZD, AUD. The different currency options are beneficial as currency conversion fees do not apply when using an account in your own currency.
As broker fees can vary and change, there may be additional fees that are not listed in this Pacific Financial Derivatives review. It is imperative to ensure that you check and understand all of the latest information before you open a Pacific Financial Derivatives broker account for online trading.
Pacific Financial Derivatives Account Opening
PFD have an online form that you need to complete to apply for a trading account with this brokerage. You will need to enter a username, password and email. You will receive an auto-email to the registered email id with your chosen username and password and a link page. You may click on the link to activate the online registration to further complete the online sign up. Once the registration is activated by clicking on the link page, you can login immediately using the user name and password to complete the online signup. This will require submitting personal documents as part of the KYC process. Before you open an account with PFD to trade online, it is important that you read Product Disclosure Statement and General Terms and Conditions.
Pacific Financial Derivatives Summary
Overall, PFD is an established online brokerage that has a diverse range of tradeable assets. They provide the MT4 platform which is convenient for most traders and also have the option of FIX API connectivity that caters to more complex trading strategies. The spreads and commissions are very competitive whilst there is a vast choice of account funding options.
The broker could however improve on the educational resources offered to clients, perhaps by creating a trader’s academy with tutorial videos and trading guides. They could also benefit from providing additional trading tools, daily market analysis and social trading platform integration.
Trading in futures, forex and Over the Counter (OTC) products offered as Contract For Differences (CFDs) by Pacific Financial Derivatives Limited, company #973842 is speculative in nature and not appropriate for all investors. Investors should only use risk capital when trading futures, forex and CFDs because there is always the risk of substantial loss. It is important investors carefully consider their objective, financial situation and level of experience. It is recommended that investors seek independent advice before trading. Account access, trade executions and system response may be adversely affected by market conditions, quote delays, system performance and other factors.