Note: Do NOT Use this platform – the U.S. Commodity Futures Trading Commission filed a civil enforcement action against Laino Group Limited (which did business under the name PaxForex) a company registered in St. Vincent and the Grenadines. The CFTC’s complaint charges the defendant with engaging in unlawful retail commodity transactions and failing to register as a futures commission merchant (FCM). Source
PaxForex is a forex broker providing customized trading services to its clients all over the world. The company offers a competitive pricing model along with multiple account types. While trading with PaxForex, clients can enjoy instant trade execution and high leverage options. The company has been in business for nearly a decade. In this piece, I review all services and features offered by the broker in detail. So let’s begin.
Founded in 2011, PaxForex is a brand name of Laino Group. The company is registered in Saint Vincent & the Grenadines. With its head office in London, the broker operates through its several regional offices all around the world. PaxForex claims to have an STP trade execution policy with tight spread costs. The official website of the broker is accessible in multiple languages of the world. Clients can contact the company five days a week. Being a non-regulated business concern, PaxForex does not accept clients from Japan and the United States.
|Low deposit requirement|
Multiple account types
Quick account opening process
Swap free Islamic accounts
|Limited tradable instruments|
No proprietary trading platform
No insurance plan
Who PaxForex is for?
PaxForex is a medium-range broker that is suitable for every day trader looking to have more profits in a low cost trading environment. With tight spreads, the company ensures lightning-fast trading execution to help scalpers not to miss even minor trading opportunities. High volume traders can use high leverage for enhanced market exposure and exponential growth of their profits. Novice traders can practice different trading strategies using demo accounts without losing real funds. The broker also offers one-on-one training sessions with personal account managers, enabling beginners to learn forex trading effectively.
Sign up bonus: The broker offers a signup bonus of up to 100% of the deposit amount. Clients need to deposit $1200 to avail the bonus offer.
Is PaxForex Safe?
Unfortunately, the broker seems to have no regulation. Also, no information is available on the official website of the broker that could confirm if the broker offers any funds insurance plan. However, the broker does follow the AML guidelines. Keeping clients’ funds in segregation from its capital resources, the broker also maintains a minimum level of funds to remain liquid.
PaxForex hosts advanced level internet security protocols to protect traders’ confidential information from being stolen. However, setting all safety measures aside, the absence of regulation instigates a sense of insecurity. Also, the lack of a fund compensation scheme or any other insurance program makes the broker unsafe for investment purposes.
Offering of Investments
PaxForex offers a limited product portfolio that is another downside of the broker. Clients can trade around 60 forex currency pairs with a handful of tradable products in indices, metals, and stocks. There is no information available on the complete list of offerings on the company’s website. The unavailability of a wide range of tradable instruments makes the broker a weak competitor as compared to other trading giants with product lines exceeding thousands of financial derivatives.
|Forex: Spot Trading||Yes|
|Currency Pairs (Total Forex pairs)||30+|
|Social Trading / Copy-Trading||Yes|
|CFDs instruments||Forex, Metals, Stocks, Energies, Indices|
Commissions & Fees
The broker claims to have a low fee structure. At present, clients can open four types of accounts with the broker, including, Cent, Mini, Standard, and VIP.
With a minimum spread of 2.4 pips and a lot size of 0.0001, the cent account targets novice traders. Clients can get started with the broker for a deposit of $10 only. The cent account helps traders to gain the required confidence needed for trading big lots.
Risk-averse traders might find the Mini account to be the best fit for their trading needs. Clients need to deposit a minimum of $100 to sign up for the Mini account at PaxForex. Spread cost in Mini account starts from 1.4 pips with a minimum lot size of 0.01 and 10% call on margins.
PaxForex offers two more types of accounts (Standard & VIP) to experienced and professional traders. The minimum deposit amount required to open a Standard and VIP account is $ 2000 & 10,000, respectively. The spreads for both accounts start from 0.4 pips with the same size of tradable lot that is 0.01.
Margin call is set at 10% for all Paxforex accounts except the cent account. Also, personal account managers and free VPS service is available for VIP account holders as default. The broker also offers swap-free accounts for Muslim traders. Clients are allowed to withdraw a minimum amount of $15, however 5.5% commission may apply.
|Minimum Initial Deposit||$10|
|Average Spread EUR/USD – Standard||0.8 Pips|
|All-in Cost EUR/USD – Active||1.2 pips|
Platforms & Tools
PaxForex does not offer any proprietary trading platform. Traders have no choice available but to use the industry-standard platform MetaTrader4. The MT4 trading platform is compatible with all electronic devices, including desktop, mobile, and tablets.
The Mt4 trading platform comes with some advanced features and tools, including real-time price quotes, customized layouts, multiple chart types, and 30 built-in indicators. Traders can conveniently navigate across the MT4 trading platform due to its user-friendly interface.
Charts in MT4 are viewable in 9-time frames with an option to enter a position directly from the charts. Traders can also use 44 analytical tools to forecast technical bias and trends of underlying tradable assets.
The platform also allows traders to use expert advisors for the automation of trading ideas and strategies. To remain updated on specific market moves, clients can enable push notifications to have them received on registered mobile phones and emails. Free VPS with MT4 integration can help clients to enjoy automated trading without keeping their desktops live.
|Virtual Trading (Demo)||Yes|
|Desktop Platform (Windows)||Yes|
|MetaTrader 4 (MT4)||Yes|
|MetaTrader 5 (MT5)||Yes|
|Charting – Indicators / Studies (Total)||30+|
|Charting – Drawing Tools (Total)||40+|
|Charting – Trade From Chart||Yes|
|Order Type – Trailing Stop||Yes|
Like other domains, PaxForex also has only little to offer under the research area head. The broker does not even caption the research area properly. Fewer resources, including forex news, daily trading analysis, fundamental analysis, and economic calendar is all that you can find under the research section of the PaxForex.
The trading and fundamental analysis help clients to know the direction of possible price trends. Clients can subscribe to receive daily analysis from the PaxForex expert professionals on registered email or mobile phones. To enhance the trading knowledge of customers, the broker also features daily blog posts, covering a range of written articles on various forex topics. Using forex calculators, clients can figure out trading costs effortlessly.
Compared to the research section of the broker, the education section isn’t much different. The broker offers only a few resources in its educational library. However, the broker has a wide range of collections on video tutorials. Clients can access more than 100 videos to learn various aspects of forex trading. The content seems to be a little unorganized. It lacks divisions according to clients’ trading experience. On the other hand, PaxForex also offers a forex learning course to its clients. The broker starts with forex basics and then dives deep, making clients explore and learn more advanced levels of forex trading.
The MetaTrader (MT4) mobile-based app is as powerful as the desktop version. Being fully customizable and integrated with trading accounts, it offers clients to enjoy all the features deemed necessary for a successful trading exposure. With a market watch list, the mobile app enables clients to have a quick look at the prices of their favorite tradable assets.
Traders can also access all 3 types of charts, including candlestick, line, and bar charts in 9 different times frames. The MT4 mobile trading app supports all basic order types, including pending and market orders. All technical indicators offered in the desktop version are also available in the mobile based trading app. The only exception comes with the availability of trading tools that are a little less in numbers as compared to the desktop version.
|Mobile devices||Android & Apple|
|Features||Watchlist, charting tools, negative balance protection, price alerts|
After a detailed review of the broker, I’m not very impressed with the overall features and services offered by PaxForex. Initially, I was excited to review the broker since the website appeared well structured with a lot of tabs to explore. However, there is nothing much to offer inside those tabs. The broker does not hold any regulation, lacks proprietary trading platform, and has no investors funds compensation program. Also, the limited product portfolio and fewer research tools don’t make me feel excited about the broker. The only good thing I see in the broker is its competitive spreads and bonus promotions that may be instigating for newbies.
Overall rating: 2.5/5