Trading Specialists Reveal a Thorough Examination of PaxForex
PaxForex, established in 2010, caters to active traders with a low minimum deposit of $10 and a variety of account options, yet aspects like withdrawal commissions and offshore regulation warrant consideration from prospective traders.
Established in 2010, PaxForex functions as a versatile brokerage platform designed to cater to the needs of active traders.
Comprising former professional traders, the PaxForex team leverages cutting-edge technological advancements, enabling them to contend with other European brokers effectively.
The broker conducts its operations under the regulatory oversight of Saint Vincent and the Grenadines Islands’ Financial Services Authority (SVG FSA).
Most of PaxForex’s clientele originate from the United States, accounting for 16.26% of the broker’s customer base. Other prominent client demographics include those from Iran (8.75%), Bahamas (7.22%), United Kingdom (3.93%), Russia (3.91%), United Arab Emirates (3.77%), Germany (2.68%), South Africa (1.66%), Canada (1.08%), and Ukraine (0.53%).
Additionally, they have a strong affinity for the company’s minimum deposit, which commences at just $10, starting spreads at 0.4 pips, and the availability of leverage up to 1:500.
Adding to the firm’s array of appealing features is its versatile affiliate program, which includes several types of representatives: IB Representative, Regional Representative, White Label, and Return on the Spread.
The IB Representative program is open to both individuals and legal entities, providing options for cooperation like CPA (a fixed profit amount averaging $600 per attracted client) and profit interest (earning up to 80% of the spread for each transaction made by referrals).
Meanwhile, the Regional Representative program targets legal entities aiming to promote the PaxForex brand, with compensation linked to the activity of the attracted referrals.
For those looking to establish their own business under their brand, the White Label option is available on the PaxForex platform.
Subsequently, the Return on the Spread partnership agreement allows partners to refund a portion of their trading costs to the referral.
PaxForex also provides a range of account options tailored to various types of traders. These include cent accounts ideal for beginners, standard accounts, specialized accounts for institutional clients, and even the opportunity to trade stocks.
The Cent account is characterized by a minimum deposit requirement of just $10 and a modest trading volume of 1,000 units of the base currency. It offers spreads starting from 2.4 pips, and the stop-out level is set at 20%.
Meanwhile, the Mini account requires a minimum deposit of $100, and it features standard lot sizes with spreads starting from just 1.4 pips.
For professional trading, there’s the Standard account, which offers tight spreads starting at just 0.4 pips. It requires a minimum deposit of $2,000.
As for institutional customers, there’s the VIP account, which boasts spreads as low as 0.4 pips. The minimum deposit requirement for this account is $50,000, and notably, the VIP server comes at no additional cost.
Despite the array of compelling features and offers, clients have expressed disappointment with some of the company’s drawbacks.
These include a commission charged for each withdrawal, with neither the broker covering their own commission nor the costs incurred by the trader.
Technical limitations when working with advisors have also been a source of frustration.
PaxForex operates based on a hybrid A-Book/B-Book scheme, which may not align with the preferences of all traders.
Furthermore, there is an absence of investment programs, limiting potential avenues for clients to grow their wealth.
Lastly, it’s worth noting that the broker operates under offshore regulation, which comes with the absence of an insurance fund.
Therefore, experts advise that prospective traders should consider these limitations before engaging with the platform.
The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.