PaxForex Review 2020
PaxForex is an offshore Forex and CFD trading broker that has been around since 2011. The brand offers competitive spreads and the versatile MetaTrader (MT4) platform. Traders also get access to educational resources, daily market analysis and some useful trading tools. However, it should be noted that trading instruments are limited compared to other online brokers whilst regulations are distinctly lacking.
PaxForex Review 2020, Pros & Cons
- Low trading capital of $10 required
- Daily analysis, research & recommendations
- Multiple account types to suit all level of traders
- Multilingual customer support team
- Free VPS & training resources
- Unregulated broker
- Limited trading instruments; less than 100
- No US or Japanese trades accepted
In this detailed PaxForex 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.
PaxForex is not ranked in our best forex brokers, best stock brokers, best cfd brokers, best crypto brokers or best online brokers categories. You can use our free broker comparison tool to compare online brokers including PaxForex.
PaxForex Review: Summary
PaxForex is an online forex and CFD broker that offers its services to traders across the globe. Established in 2011, PaxForex was formed by a group of professional traders who have worked in managerial positions within other brokerage firms. With vast knowledge and experience, the team aimed to contrive a flexible and reliable trading environment for its clients.
PaxForex is owned by ‘Laino Group’ which is a company registered in St. Vincent and the Grenadines. Its head office is in London, UK while it has offices in other locations. The official website is available in 7 languages.
PaxForex claims to be a true STP broker that offers competitive spreads and trade execution speeds. It sources its liquidity from premium banks such as Credit Suisse, Barclays, Deutsche, Goldman Sachs, UBS and Merrill Lynch. This helps enable the broker to offer variable bid/ask prices with minimal trade slippage. PaxForex trading servers are hosted in Equinix Data Centres which are located in London and New York. This also helps to ensure a speedy connection to exchanges and the various liquidity providers.
PaxForex offers over 70 tradable assets for trading on the popular MT4 platform which accommodates all types of traders and trading strategies. The broker also provides some tools to further assist their clients in their quest to become successful traders. Despite this, they are let down by a lack of regulation and thus it makes it impossible to verify the claims that they make and investors do not have the protection they may have when using a regulated broker.
PaxForex Review: Regulation
PaxForex is registered in St. Vincent and the Grenadines. The broker does not provide its regulatory information. Most traders would prefer not to use an unregulated broker.
Investors’ funds are apparently held in segregated accounts specifically marked as ‘clients Accounts’. They claim that these accounts are kept in top rated European banks. Segregated client funds cannot be used for other business purposes such as running costs.
The PaxForex trading and transaction environment is protected by a Secured Socket Layer (SSL) which is the standard practice in order to deter internet fraudsters and protect user transactions on the website and platforms.
In compliance with the Anti Money Laundering (AML) policy, all clients are verified before the registration is completed. A government issued ID card and a utility bill is required. Clients are to upload these two documents in order to prove that are real human beings with a registered identity.
PaxForex Review: Countries
PaxForex states that its services are not for citizens and residents of United States and Japan. Some PaxForex broker features and products mentioned within this PaxForex review may not be available to traders from specific countries due to legal restrictions.
PaxForex Review: Trading Platforms
MetaTrader 4 (MT4)
PaxForex offers the popular MetaTrader 4 (MT4) trading platform to all its clients. This is the sole platform available from PaxForex. MT4 is a widely accepted platform by both brokers and traders because of it speed, features and complexity.
MT4 was developed in 2005 by a Russian Company known as “MetaQuotes Software Corporation”. Today, millions of traders from all over the world use the MT4 platform and thousands of custom indicators and expert advisors are available.
The PaxForex MT4 platform is available as a desktop application and as a mobile app. Here are a few of the features of the MT4:
- It displays the prices of all the tradable assets in real time.
- The platform interface is simple, user friendly and easily customised to suit the trader’s preferred layouts, colours and favourite instruments.
- Three chart styles including Candlesticks, bar and line charts.
- All trading instruments can be displayed on charts over 9 timeframes from 1 minute to 1 month.
- 30 inbuilt technical indicators which can be extended to thousands with additional custom indicators
- 44 inbuilt analytical tools and objects.
- Supports automatic trading through the use of expert advisors (EAs).
- Price alert notifications via pop-up, SMS & email.
MetaTrader 4 (MT4) Mobile
MT4 is also developed for mobile devices that run on Android or iOS. The mobile software can be downloaded from the traders’ cabinet area of the PaxForex website. The MT4 app is simple and user friendly. It fully integrates with accounts created using the desktop version. Here are some features of the key features of the MT4 mobile app:
- Displays the live quotes of all the tradable assets. The list can be customised to show only the trader’s favourite assets.
- The app interface, colours and charts are customisable to match the trader’s preference.
- It also displays 3 chart styles of all instruments on 9 timeframes, just like the desktop version.
- It comes preloaded with 30 technical indicators and 24 analytical tools.
- It supports multiple order types including market and pending orders.
- Push notifications.
PaxForex Review: Trading Tools
Virtual Private Serve (VPS)
The Virtual Private Server (VPS) is provided by PaxForex for all clients. However, VIP account holders are given free access to VPS while other clients can have access by paying a subscription fee of $25 every month. The VPS is suitable for clients who use complex trading systems like expert advisors (EAs), mechanical systems or news traders. The VPS has negligible latency as well as reliable and constant access to PaxForex trading servers. A VPS is useul to remotely run trading platforms 24/7 without needing your own computer switched on.
Forex Market Economic Calendar
This is a calendar listing global economic events, dates, times and location. These events have been forecasted to have impacts on currencies or other trading instruments. A trader may make trading decisions based on history, analysts’ forecasts and a host of other factors. The economic calendar is an important trading tool for traders who base their trades on fundamental analysis. It can also be filtered to show only the trader’s choice of events, assets, country, dates, etc.
Forex Fundamental Analysis
PaxForex analysts present daily fundamental analysis to its clients. These experts follow the markets and leverage from their vast experience, tools and expertise to arrive at the trading ideas which they serve to the clients. The daily analyses are also delivered by email to clients who subscribe to the trading signals services.
The PaxForex analytics department runs a forex blog on the website. This blog is frequently updated with articles posted almost every day. The aim of the blog is to help make traders successful by increasing their trading knowledge. The blog focuses on providing information on some interesting topics in the financial markets. It also provides training articles as well as market analysis.
This tool is designed to help a trader to determine the pip cost based on the instrument of choice, leverage and lots traded. It offers a simple, fast and efficient way to calculate trading costs.
PaxForex Review: Education
PaxForex has a collection of training resources on its website. There are several articles on forex and CFD trading that are grouped as ‘forex trading course’. These article lessons are designed to give beginners a good base to start from. Lessons cover a range of trading topics including market analysis, trade positions, money management, platform and more.
Also, a glossary of forex/CFD trading jargons is provided. The glossary contains over 200 technical trading terms along with their meanings or explanations.
PaxForex Review: Trading Instruments
The number of trading instruments offered by PaxForex is rather small when compared to other online brokers. PaxForex offers less than 100 tradable assets compared to some online brokers that provide thousands.
There is a range of major, minor and exotic forex pairs available for trading on the PaxForex platforms. In total, there are about 60 currency pairs, 7 equity shares, 2 metals and 4 crypto assets.
PaxForex Review: Trading Accounts & Fees
PaxForex has different account types which depend on the trader’s capital. For all accounts, the maximum leverage is 1:500. The following account types are available:
- Cent Account: The account is created for beginners who wish to have a taste of live forex trading. The minimum opening balance is $10 and it is only available in USD. The lot size is 1,000 and the minimum spread is 2.4 pips.
- Mini Account: Best for new traders who are unwilling to take big risks. The minimum deposit is $100 and the spread starts from 1.4 pips. The margin call is at 10% and the stop out is 5%.
- Standard Account: This account is best for experienced traders as well as professional traders. The minimum account opening balance is $2,000 and the spread starts from 0.4 pips. Margin call is at 10% while stop out is at 5%.
- VIP Account: This account type is specifically made for professional traders who need the best brokerage services that PaxForex can offer. The spread starts from 0.4 pips and the account opening amount is $10,000. A personal account manager is assigned to account holders and they also get priority execution of orders. Free VPS access is also available to account holders.
Demo accounts can be created freely from the PaxForex traders’ cabinet. During the demo account creation process, the trader specifies the amount of virtual currency he needs which can be up to $1 billion. A demo account allows you to try the different platforms and trading strategies before opening a real trading account.
Swap free accounts are available on request for Mini, Standard and VIP accounts. Swap free accounts are exclusively for Muslims who cannot accept interests by reason of their faith.
As broker fees can vary and change, there may be additional fees that are not listed in this PaxForex review. It is imperative to ensure that you check and understand all of the latest information directly from PaxForex before opening a trading account with this brokerage.
PaxForex Review: Customer Service
The client support team at PaxForex is available 24/5. The customer support desk is multilingual and can be reached on email, phone, fax, live chat and ‘Ask your Question’ form which is available on the website. PaxForex is also on social media; Facebook, Twitter, Instagram, YouTube, Telegram and LinkedIn.
PaxForex Review: Deposit & Withdrawal
PaxForex states clearly that it covers all charges for deposits from $300 and above. The exception is for bank transfers in which the clients’ bank may impose commissions.
- Bank Wire transfers: This method takes 3-5 working days on the average. The minimum deposit is $100.
- Debit/Credit Cards: All major credit cards are accepted which includes Mastercard and Visa Card. The minimum deposit accepted is $15 but deposits from $300 are not charged any commissions. A minimum of $10 can be withdrawn but commissions of 5.5% are charged. Card deposits are processed instantly but withdrawals take up to 2 days.
- Online Payments: The electronic payment channels accepted are: Neteller, Skrill, Perfect Money, WebMoney, QIWI and FasaPay. It takes an average of one hour to completely process online transactions. The minimum deposit is $10. Processing fees may be charged depending on the payment method used.
- Cryptocurrencies: The crypto payments accepted are Bitcoin and Ethereum. No deposit fees are charged and the transactions are completed within a day. The minimum payments are 0.01BTC and 1ETH.
PaxForex Review: Account Opening
Visit the PaxForex website and click on ‘Open trading account’ which can be seen at the top of every web page. The form below displays:
If you already have accounts with Google or Facebook, you click on the applicable logo to enable PaxForex to receive your profile information from the website. Otherwise, fill the first page of the form and go to the next page to choose an account type, deposit method and deposit amount. The third page is for phone verification where PaxForex website automatically sends a code to the registered phone number and the code is required to continue the registration process. The last page is about e-mail verification after which you are logged into the traders’ cabinet where you can download platforms, create more accounts, make deposits, etc.
PaxForex Review: Conclusion
PaxForex is an online broker that can meet the basic needs of forex and CFD traders. The choice of the user friendly MT4 platform along with the multiple account types help show that PaxForex brokerage services are designed for all types and levels of online traders.
The account registration process is fast and easy. There are multiple payment options which include payments with cryptocurrencies like Bitcoin and Ethereum. Demo accounts are unlimited, free and can be easily be created with a few clicks in the traders’ cabinet area. Newbies can combine the training course on the website and demo account to learn how to trade.
Experienced traders can leverage on the powerful trading tools and custom add-ons offered by MT4. The market analysis and other trading tools provided by PaxForex are useful to all traders.
However, there is one big issue and that is the unregulated status of PaxForex, which is a huge problem. This is because most forex bloggers, analysts, professional traders and experts always advise against trading with unregulated brokers. Furthermore, the selection of trading instruments offered by PaxForex are also very limited compared to most other online brokers.
Please note that trading in leveraged products may involve a significant level of risk and is not suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary.