Richard Montana | April 29, 2022
PaxForex is an online Forex and CFD trading broker that has been around since 2011. The broker lets you trade with tight spreads and commission free accounts via the versatile and user-friendly MetaTrader 4 (MT4) platform for web, desktop and mobile devices. I was also able to get access to educational resources, daily market analysis, useful trading tools, various funding options and around the clock support. However, they are not regulated which may be a concern for some of you. If regulation is important to you, AvaTrade are one of the most well-regulated brokers that I have come across.
Pros / Cons
- User-friendly MetaTrader 4 trading platforms
- Low trading capital of $10 required
- Tight spreads & rapid trade execution speeds
- No commission fees
- Various account deposit/withdrawal methods
- Multiple account types to suit all level of traders
- Daily analysis, research & recommendations
- Free VPS & training resources
- Multilingual customer support team
- Islamic accounts
- Not regulated
- No MetaTrader 5 platforms
- Limited non-fx trading instruments
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, I was satisfied that 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. I appreciate that they offered their official website in 7 languages.
I believe PaxForex is a true STP broker as it 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. I find these banks highly trustworthy. This helps enable the broker to offer variable bid/ask prices with minimal trade slippage. I found that 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. This is quite a limited offering but should be enough if you plan on trading forex. I like that the broker also provides some tools to further assist you in your quest to become a successful trader.
PaxForex is registered in St. Vincent and the Grenadines. The broker does not provide its regulatory information at the moment. Make sure you understand the difference between a regulated and non-regulated broker. I personally would not be comfortable with a broker who is not regulated at all. You can see our broker ratings for alternative options.
According to the brokers website, investors’ funds are apparently held in segregated accounts specifically marked as ‘clients Accounts’. They state that these accounts are kept in top rated European banks. Segregated client funds cannot be used for other business purposes such as running costs. Although this does sound pretty secure, I’m still not fully satisfied since they aren’t regulated.
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. I find this to be routine procedure as almost all brokers require this information upon signing up.
PaxForex states that its services are not intended to be addressed to the public of Iraq, Syria, North Korea, or any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. If your country is not accepted, you can find an alternative using our broker comparison tool.
MetaTrader 4 (MT4)
PaxForex offers the popular MetaTrader 4 (MT4) trading platform to all its clients. This is the sole platform available from PaxForex. I find that the MT4 is a widely accepted platform by both brokers and traders because of it speed, features and complexity. I personally prefer the MT4 for its user-friendly interface but it does not have the advanced functionality of MT5. If you are a MetaTrader 5 user then you may want to consider Pepperstone instead as they have both the MT4/MT5 platforms.
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 trading app.
Here are a few of the features of the MT4 platform:
- 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. I find the MT4 app to be 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 that you might find useful:
- 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 have a few tools that you may find useful but nothing that sets them apart from competitors. If you want lots of advanced trading tools to improve your trading, Markets.com have an excellent selection. GO Markets also provide Autochartist and Trading Central which are fantastic for trading signals.
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. I don’t think this is unfair as VIP account holders are paying a huge sum just to open their trading account with this broker. 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.
I found the VPS a bit hard to understand at first but it is quite a useful feature once you understand how to use it. A VPS is used to remotely run trading platforms 24/7 without needing your own computer switched on. I found this really helpful at times when I had bad internet service. I actually have my own VPS that cost around $30 a month so it is nice to have the option of getting it paid for. You can get access to a free VPS from other brokers, including Blueberry Markets.
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. I find the economic calendar to be an important trading tool for traders who base their trades on fundamental analysis. I like that it can also be filtered to show only the trader’s choice of events, assets, country, dates, etc.
Forex Fundamental Analysis
PaxForex analysts present you with daily fundamental analysis. These experts follow the markets and leverage from their vast experience, tools and expertise to arrive at the trading ideas which they serve to you. I appreciate that the daily analyses are also delivered by email to clients who subscribe to the trading signals services.
I really like that the PaxForex analytics department runs a forex blog on the website. This blog is frequently updated with articles posted almost every day. I found that 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. My favourite feature is that it 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.
I found PaxForex to have a collection of training resources on its website. There are several articles on forex and CFD trading that are grouped as ‘forex trading course’. I really like how 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 offers around 100 tradable instruments across different asset classes, including Forex, Stocks, Precious Metals and Cryptos. There is a range of major, minor and exotic forex pairs available for trading on the PaxForex platforms.
If you are looking for plenty of instruments, IG would be my top choice as they have over 17,000 global markets to choose from. TMGM also have a generous selection of more than 15,000 for you to trade, putting them amongst our best stock brokers.
If you plan on trading forex using strategies that require the lowest spreads at all times, XM Group have spreads from just 0.0 pips on major currency pairs.
PaxForex has different account types which depend on the trader’s capital. For all accounts, the maximum leverage is 1:500. If you want higher leverage, LMFX offer 1:1000.
The following account types are available for you to choose from:
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.
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%.
This account is geared towards 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%. I personally think $2000 is way too much for a standard 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. I expected the spreads to be much lower for an account of this value. I also read that 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. I personally would use a demo account first if I were trading with a new broker.
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. I appreciate their inclusivity and how they take into account all religions.
Other brokers who have a good choice of account types for you to choose from include Eurotrader.
The client support team at PaxForex is available 24/5. I wish it would’ve been 24/7 like Bold Prime in order to cater to the community of traders who only have time for questions on the weekends. I appreciate that 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. I think that since PaxForex is also on social media; Facebook, Twitter, Instagram, YouTube, Telegram and LinkedIn, they have a good chance of catering to the younger audience as well.
I found that PaxForex has a good choice of funding options for you to choose from. They clearly state that they will cover all charges for deposits from $300 and above. The exception is for bank transfers in which your 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.
I found that I had to visit the PaxForex website and click on ‘Open trading account’ which can be seen at the top of every web page in order to open an account. The form below displays:
I noticed that if you already have accounts with Google or Facebook, all you need to do is 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. I found the entire process really lengthy but it went smoothly.
I think that PaxForex is a broker that offers competitive trading conditions for trading a limited number of instruments online such as CFDs on Forex & Stocks. I like that they have the user-friendly MT4 platform (desktop, web & mobile app) along with the multiple account types. This means that they can provide brokerage services which are suitable for all types and levels of traders.
I found the account registration process to be lengthy but pretty straightforward overall. There are multiple quick and easy payment options which include payments with cryptocurrencies like Bitcoin and Ethereum. Bank transfers would work the best for me using them, simply because they are not regulated. Demo accounts are unlimited, free and can be easily be created with a few clicks in the traders’ cabinet area. I would always trade on a demo account with a new broker to see if they are suitable for your needs.
For those of you who are beginners, you can combine the training course on the website with a demo account to learn how to trade in your own time. Experienced traders can leverage on the powerful trading tools and custom add-ons offered by MT4. One of my favourite aspects is the market analysis and other trading tools provided by PaxForex which can be useful to all traders.
However, they are not regulated which may be a deal breaker if you are considering opening an account. You can have a look at our broker ratings if you prefer to trade with a regulated broker.