Search Google for an online broker and the sheer number of companies that pop up will make the task of choosing one very daunting. If you check out a few, you will see a common theme; all of them are promising you the best services. Does this mean you sign up with all? Of course, this is not something practical and you have to sort through these names to find the one that can be the best fit for you. Most importantly, you have to be cautious because scam brokers are also present and they can trap you as well. This PBFX review will become relevant in this aspect.
The reason scam brokers are not so easily identifiable, especially at first glance is made obvious when you check out the PBFX website. This company claims to be a global, leading online platform that specializes in offering people financial derivatives, such as forex currency pairs, along with CFDs on precious metals, index, stocks and commodities. Furthermore, PBFX also claims to be operating in various countries in the Asia Pacific region and this includes Taiwan, Thailand, Vietnam, Malaysia, Australia, Indonesia, China and New Zealand. This obviously makes the brokerage sound amazing and the best choice for you.
However, you need to be aware that scam brokers use just this tactic to attract traders and you will come to know the red flags later when it is too late. This is something you want to avoid, so it is best to go through the review for PBFX below to know what red flags they are trying to hide behind the amazing offerings mentioned above.
Regulatory status and licensing
Anyone with even a little bit of experience in the world of online trading will tell you that you shouldn’t sign up with a broker without checking their regulatory status and licensing. This is because a licensed and regulated broker can offer you protection during the trading process because they have to maintain high standards and follow stringent rules and regulations. It adds to their credibility and gives you reassurance, something you will not find at PBFX.
If you take a look at the PBFX website, you will find that it claims to be owned and operated by a company incorporated in New Zealand named Prime Business Co. Limited, which is a registered finanical services provider. Yes, this sounds very impressive, if not for the fact that the Financial Markets Authority (FMA) in New Zealand has actually issued a warning against the broker.
As per the warning that you will find on the FMA website, PBFX is apparently running a clone website because Prime Business Co. Limited is indeed a legitimate company and financial services provider registered in New Zealand, but it is not associated with PBFX in any way. As a matter of fact, the latter is using the FSPR registration number of the company without their consent for misleading investors. In addition, it should be noted that the warning has been issued for pbfx.asia and pribizo.com.
This is because the pbfx.asia website is only available in Chinese and translating it into English transfers you to pribizo.com, which doesn’t make any sense either. Other than these problems, you will also find that PBFX has also claimed to be licensed by the Australian Securities and Investment Commission (ASIC) as well and this is another lie.
The trading conditions offered by a broker are relevant to your decision of signing up with them and this also includes the leverage they will provide to you during the trading process. When you check the leverage levels provided by PBFX, you will come to know that the ratios can go as high as 1:1000.
Sure, such high levels of leverage are undoubtedly attractive, but you have to remember that there are risks involved as well. But, the most important fact is that such leverage ratios are not allowed in most of the regulated jurisdictions around the world. Australia, one of the countries where PBFX claims to be regulated, is also one of them. They have also imposed a cap on leverage ratios of 1:30 and this is evidence that the broker is lying about its regulation because it is not following any rules.
One of the most important offerings of a broker that you need to check out is the trading platform because you engage with this feature the most, which means your experience will depend on this for the most part. This is the only element where PBFX appears to be honest because it has promised the MT4 trading platform and is actually delivering it.
It is true that the MT4 is one of the top trading platforms in the forex industry and is well-known and recognized. However, this doesn’t mean you should overlook the other shortcomings of PBFX and sign up with them because there are other legitimate entities that can offer you the same platform and authentic services.
It is also recommended that you take a look at the payment methods supported by a broker because you want to be able to make your deposits and withdrawals easily and safely. The possible payment options that are listed on the PBFX website include USD Tether, China Union Pay and some obscure payment providers, such as IDA, PayTrust and MTPAY.
None of these payment options offer you the chargeback option and this is something you need to bear in mind. Only credit cards like VISA and MasterCard allow you to file for a chargeback, which are not supported by PBFX. If you use any of the methods they do offer, the payments will be permanent and irreversible, which means in case of a scam, you will not get your funds back.
When you take a close look at PBFX, it is easy to identify the numerous red flags the platform has. All of them are pointing towards one obvious conclusion; PBFX is not a legitimate and reliable broker and you need to look for a better option.