Paxton Trade Review
Finding a reliable and dependable broker should be a priority for anyone looking to engage in online trading. As there are many people who are interested in doing so, it is not surprising that the demand for these brokers is surging. The only problem is that this provides shady characters the opportunity to lure people in with fraudulent platforms and scam them. You can find hundreds of reports of such incidents, where people discovered too late that they had signed up with a scam broker. So, how do you avoid this situation? Going through this Paxton Trade review can do the trick.
You will quickly discover that people get scammed because they are in a hurry to open a trading account and don’t do their homework. When you are trusting someone online with your hard-earned money, you shouldn’t be quick to hand it over. It is a good idea to know the essentials and verify all the information before you accept it. These days, anyone can claim to be anything online and this applies to brokerages as well. Thus, a little effort is what you need to avoid a disaster. Paxton Trade boasts a license that has been issued by the financial authorities in Mauritius.
It offers its clients a range of almost 300 trading instruments, which include forex currency pairs and CFDs on stocks, indices, precious metals and commodities. There are two account types, the well-known MT4 platform and leverage of up to 1:500. This makes Paxton Trade appear to be a comprehensive trading solution, but what really is it? You can go through the review below to find out:
Regulation and Licensing
Checking the regulation and licensing of a broker should be your first priority because there is safety in trading with one that has a proper license and is regulated by a renowned financial authority. It ensures proper protections are in place and the brokerage can also be held accountable. When you take a look at Paxton Trade, you will find that it is owned and operated by Paxton Trade Limited, which is based in Mauritius. It has obtained a license from the Financial Services Commission (FSC) and it seems that the brokerage is also associated with Sphere Management (Mauritius) Ltd.
This should be good news, but the problem is that offshore regulators like the FSC in Mauritius do not oversee such brokers like Paxton Trade that operate internationally. Moreover, they also have lax regulatory requirements, as opposed to authorities in other jurisdictions like Europe, the UK or even Australia.
Another problem with Paxton Trade is that it has clearly mentioned on its website that it doesn’t accept clients from the United States and the European Economic Area because it probably doesn’t comply with their requirements. If that’s the case, then it shouldn’t offer its services to UK clients either. Yet, it does allow traders from the UK to sign up, which means it is illegally offering its services. This is because it would need a license from the Financial Conduct Authority (FCA) in the UK to be able to cater to clients from the region, which it clearly does not have.
You need to know what minimum deposit you would have to make to open a trading account with the broker. Many brokerages ask their clients to make a deposit and this is not a problem, but the problem with Paxton Trade is the uncertainty in this regard. They are offering conflicting information and this can lead to confusion. If you go through the Frequently Asked Questions (FAQs) section on their website, you will find that they have mentioned a minimum deposit of just $100 to start trading.
However, if you take a look at the account specifications, you will find that the minimum deposit required is around $1,000. Not only is the conflicting information concerning, the high deposit of $1,000 is also a problem. The average amount that most brokers require is between $200 and $250 and this is four times that amount. Moreover, these days brokers have even begun to let their clients open accounts for as low as $10. Thus, a demand for such a high deposit by Paxton Trade is certainly not a good sign because it is a common practice of scam brokers.
The leverage offered by a broker is also important for traders because they want to know how much flexibility they can enjoy during the trading process. You will be impressed with the 1:500 ratio that Paxton Trade is offering, but it should also set off a warning. Legitimate and professional brokerages do not offer such high leverage because of the risks associated with it. In fact, most regulated jurisdictions have prohibited brokers to offer this much leverage and you should keep that in mind.
Checking the payment methods supported by a broker is also a must before signing up because you want to be able to make your payments easily and securely. A look at the payment options available for deposits and withdrawals at Paxton Trade shows that they are providing traditional and modern payment solutions like. They have mentioned bank wire transfers as well as credit cards like VISA and MasterCard.
However, when you try to make a deposit, you will discover that Paxton Trade is lying about its payment options. Rather than offering these, they have obscure third-party payment providers, such as Blockonomics, SmartFastPay, PayBnB, MercadoEasy and B2BinPay. The problem with these payment options is that they don’t come with a chargeback option, as in the case of credit cards, which enables you to file for a refund within 540 days if there is a problem. Furthermore, it is clear that Paxton Trade is misleading its clients by mentioning different methods and this is not something a legitimate brokerage would do.
Once you have gone through this review, it can be easy to conclude that Paxton Trade is not a broker that you should open an account with because it is not clear or transparent about its services and offers misleading and conflicting information.