Pacific Financial Derivatives Review

Category: Reviews | Author: Trading Brokers | Date: April 3, 2024

Pacific Financial Derivatives (PFD) is a New Zealand-based broker with a rich history dating back to 1991. Regulated by the Financial Markets Authority (FMA), PFD has built a reputation for providing a safe trading environment and protection for its clients. In this review, we will delve into the specifics of PFD’s offerings, examining their regulations, trading platforms, education, market, and so on. We will also scrutinize their fee structures, leverage limits, and client fund segregation practices. Our goal is to provide a comprehensive and objective overview of PFD, enabling you to make an informed decision about whether this broker aligns with your trading needs and priorities. Let’s dive in and explore what PFD has to offer

Pros & Cons

  • Offers a wide variety of high liquidity derivatives
  • Gives traders access to the popular MetaTrader4 terminal
  • High leverage of up to 1:300, allowing for potentially higher profits
  • Offers tight spreads, which can reduce trading costs
  • Funds are segregated for increased security
  • Provides a variety of account options to cater to different trading needs
  • Not available in all countries due to legal restrictions
  • Demo account expires after 15 days
  • Only the MetaTrader 4 platform offered, lacking variety
  • No investor compensation scheme
  • No negative balance protection

Summary

Pacific Financial Derivatives Review

Pacific Financial Derivatives Review

Pacific Financial Derivatives (PFD) is a brokerage firm based in Auckland, New Zealand, with a rich history dating back to 1991. It’s controlled by an experienced Japanese investor with a track record of managing similar Japanese derivative firms. Over the years, PFD has achieved great success, registered with several regulators, and expanded its operations globally. PFD offers world-class brokerage services and trading platforms for trading in a variety of instruments, including Spot Foreign Exchange, Spot Metals, Spot Oil, Commodities, CFDs, and Indices.


The company is known for its advanced technology from Japan, ultra-fast execution, and high-performance standards that cater to all types of traders. The firm provides a safe trading environment and protection for its clients. It was initially authorized as an NZX Futures and Options Participant Firm, an Authorised Futures Dealer, and is currently an NZX Derivatives Participant. PFD offers a range of account types,  each designed to cater to different trading needs and strategies. They also provide a variety of funding methods, making it easy for traders to manage their trading finances. In summary, PFD is a trustworthy and low-risk broker that offers a comprehensive trading environment for both novice and experienced traders. It’s regulated by the Financial Markets Authority (FMA) and offers leverage up to 1:300.

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Regulation

Pacific Financial Derivatives (PFD) is a company that’s got its roots firmly planted in New Zealand. It’s been around since 1999, and it’s been playing by the rules since day one. The company was initially authorized by the former New Zealand Securities Commission as an Introducing Broker on the New Zealand Futures and Options Exchange.

It also had a stint as a Futures and Options Participant on the New Zealand Stock Exchange until September 2011. But that’s not all. PFD is also licensed and regulated by the Financial Markets Authority (FMA) in New Zealand. They’ve got a license number and everything – FSP28944. This means they’re not just a fly-by-night operation.

They’re a legit company that’s been given the green light by a reputable financial authority. And they’re not just resting on their laurels. They’re also keeping up with the latest regulations. They’re in compliance with the Financial Markets Conduct Act 2013, which sets out minimum standards of behavior for people operating in the financial markets.

So, if you’re looking for a company that’s got its regulatory ducks in a row, PFD might just be the one for you. But don’t just take my word for it. If PFD doesn’t float your boat, no worries. There are plenty of other fish in the sea. Please see a list of regulated brokers for some alternative options.

Platforms & Tools

Pacific Financial Derivatives (PFD) primarily uses the MetaTrader 4 (MT4) platform for its trading services. MT4 is a popular trading platform known for its user-friendly interface, advanced charting capabilities, automated trading features, and a wide range of pre-installed indicators.

MT4 Platform

MT4 Platform

In addition to MT4, PFD also supports the FIX API for traders who want to use automated trading systems or develop their own custom trading platform. The FIX API provides direct access to PFD’s liquidity providers for faster order execution.

While not a trading platform, PFD also provides additional tools such as an economic calendar, which can be crucial for traders who rely on fundamental analysis to make trading decisions. The economic calendar helps traders keep track of important economic events that could affect market conditions.


Education

Pacific Financial Derivatives (PFD) offers a few educational resources to help traders, especially beginners, understand the basics of trading. Here’s a closer look at each of them:

  • Forex Trading Basics: PFD provides a basic introduction to Forex trading. This resource is particularly useful for beginners who are just starting out in the world of Forex. It covers the fundamentals of Forex trading, including what it is, how it works, and some of the key terms and concepts that traders need to understand.
  • Glossary: The glossary provided by PFD is a comprehensive list of trading terms and their definitions. This can be an invaluable tool for beginners who are unfamiliar with the jargon used in trading. By understanding these terms, traders can better comprehend trading strategies, market analysis, and trading platform functionalities.
  • Economic Calendar: While not strictly an educational resource, the economic calendar provided by PFD is a crucial tool for traders. It lists important economic events that could potentially impact the financial markets. By keeping track of these events, traders can anticipate market movements and plan their trading strategies accordingly.

Markets

Pacific Financial Derivatives (PFD) seems to have a pretty decent spread when it comes to the markets they offer. Here’s the rundown:

  • Spot Foreign Exchange (Forex): Forex trading is the main attraction at PFD. They offer the ability to trade in various currency pairs, which is great if you’re looking to trade in the largest and most liquid market in the world. Whether you’re into the major pairs or you’re looking for something a little more exotic, PFD has got you covered.
  • Spot Metals: If you’re interested in precious metals, PFD offers trading in spot metals. This usually includes gold and silver, which are considered safe-haven assets and can be a good way to hedge against inflation or currency fluctuations.
  • Spot Oil: For those who have an eye on the energy sector, PFD provides the option to trade spot oil. This can be an exciting market, with prices influenced by global politics, supply and demand, and economic indicators.
  • Commodities: PFD also offers trading in commodities, which can include a range of products from agricultural goods to energy and metals. Trading commodities can be a way to diversify your trading strategy beyond just currencies and metals.
  • CFDs: Contract for Differences (CFDs) are also on the menu at PFD. CFDs are a type of derivative trading that allows you to speculate on the rising or falling prices of fast-moving global financial markets. This can include markets like stocks, indices, and commodities without the need for ownership of the underlying assets.
  • Indices: Lastly, PFD offers trading in indices, which can be a way to trade on the performance of a group of stocks representing a specific market or sector. This is a good option if you’re looking to get exposure to a particular part of the market without having to buy individual stocks.

Accounts

Pacific Financial Derivatives (PFD) offers a variety of account types to cater to different trading needs. Let’s take a closer look at each of them:

  • PFDTrader (MT4): The PFDTrader account is a standard account type that uses the MetaTrader 4 platform. It’s designed for all types of traders and offers a leverage of up to 1:300. There’s no minimum deposit required, and the minimum trade size is 0.01 lots. The spreads are competitive, and there’s no commission charged on trades. The margin call and stop out levels are set at 150% and 100% respectively. This account type allows for market execution of trades.
  • PFDPro (MT4): The PFDPro account is designed for professional traders and also uses the MT4 platform. It offers the same leverage and minimum trade size as the PFDTrader account. However, it features the tightest spreads and charges a commission of $1 per side or standard-size lot. The margin call and stop-out levels are also set at 150% and 100% respectively. Like the PFDTrader account, the PFDPro account allows for market execution of trades. There’s no minimum deposit required for this account type.
  • PFDProPlus (MT4): The PFDProPlus account is similar to the PFDPro account but with an added feature of netting out swaps for summarised unhedged positions. It offers a leverage of 1:100 and the minimum trade size is 0.01 lots. The spreads are the tightest, and the commission is $1 per side or standard-size lot. The margin call and stop-out levels are set at 100% and 50% respectively. The initial minimum deposit for this account type is $1000. Like the other account types, the PFDProPlus account allows for market execution of trades.
  • Islamic Account: The Islamic account is a swap-free trading account designed for traders who follow the Islamic law (Sharia) that prohibits interest (usury). It offers the same trading conditions as the PFDTrader account but without swap charges on overnight positions.
  • Multi Terminal (MT4): The Multi Terminal account is designed for money managers or traders who handle multiple MT4 accounts simultaneously. It offers the same trading conditions as the PFDTrader account. The unique feature of this account is the ability to manage and place orders across multiple accounts.
  • MAM (Multi Account Manager): The MAM account is designed for professional traders who manage multiple client accounts. It allows for the simultaneous management of multiple trading accounts using a single interface. PFD offers MAM account types without any minimum deposit/trade volume stipulations.

Funding

Pacific Financial Derivatives (PFD) offers a variety of funding methods to make it easy for traders to deposit and withdraw funds from their trading accounts. Here’s a look at the options they provide:

  • Credit and Debit Cards: You can use your VISA or MasterCard to fund your PFD account. It’s a quick and convenient way to get your account topped up and ready for trading. Just like shopping online, you enter your card details, and you’re good to go.
  • PayPal: For those who prefer using e-wallets, PFD accepts payments through PayPal. This is a secure and fast way to transfer funds, and it’s especially handy if you already have a PayPal account set up.
  • Bank Wire Transfer: If you’re more comfortable with traditional banking methods, you can opt for a bank wire transfer to fund your account. It might take a little longer than card payments or PayPal, but it’s a solid choice for larger transfers.
  • POLi: POLi is another option for funding your PFD account. It’s an online payment method that allows you to pay or receive money instantly via online banking. It’s a great option if you’re in Australia or New Zealand and want a secure and immediate transfer.

Conclusion

In conclusion, Pacific Financial Derivatives (PFD) is a solid choice for both novice and experienced traders. With its roots in New Zealand and a rich history dating back to 1991, PFD has grown into a reputable brokerage firm known for its advanced technology, ultra-fast execution, and high-performance standards. It offers a range of account types and a variety of instruments to trade, catering to different trading needs and strategies. However, it’s worth noting that while Pacific Financial Derivatives offers strong features, there are other brokers with longer track records that might be worth considering as alternative options. For additional choices, we encourage you to explore our trading brokers reviews.


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Pacific Financial Derivatives is a New Zealand-based brokerage firm offering a variety of trading instruments and account types, with advanced technology and high-performance standards.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.


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