Beware! PFX Markets is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
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PFX Markets is an offshore forex and CFD broker that claims to be regulated on the Seychelles. They offer over 30 currency pairs, and a selection of CFDs on commodities, precious metals, indices and crypto coins with three account types, leverage of up to 1:400 and a web based platform.
As tested with a demo account the benchmark EURUSD spread floated about 1,3 pips and that looks good, in case the demo account mirrors their standard account, which we were not able to verify.
Unfortunately we have some issues with the regulatory status of the broker, so if you are thinking about investing with them be sure to read the following paragraphs.
PFX Markets regulation & safety of funds
PFX Markets says to be licensed and authorized by the Financial Services Authority (FSA) Seychelles. That however turned out not to be true. We diligently checked the FSA registers and were unable to find PFX Markets there. On top of that the corporate details on PFX Markets website are quite scarce – in fact we do not know the name of the company behind the broker and that is also a problem – their website is virtually anonymous.
In any case a license by the FSA on the Seychelles can in no way be compared to a license issued by the regulators in the European Union, the US or Australia, such as the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Investments Commission (ASIC).
For example the Seychelles regulator does not have a minimum operational capital requirement, nor does it require brokers to keep their customers money in a segregated, trust account, to mention few of the standard requirements with financial watchdogs like the FCA in the UK or CySEC in Cyprus.
On top of that with a FCA broker you will even get an insurance, covering up to 85 000 GBP of the funds accumulated in your trading account.
PFX Markets deposit/withdrawal methods and fees
The minimum deposit requirement to start trading with PFX Markets is 100 USD and that is acceptable. And you may pay in various ways – the broker accepts major cards like VISA and MasterCard, bank wire and Neteller – a popular e-wallet.
PFX Markets however does not work with Skrill, and that is notable, because of the new anti scam policy of the payment company – since last October, Skrill requires all brokers, targeting customers on the European market ,to prove they hold a legit license. As we already noted PFX Markets is not a licensed broker.
How does the scam work?
Among the various techniques scammers use to hook for new victims we should mention the so called robo scam websites like Crypto Revolt and Bitcoin Evolution. Those websites are usually all about a nicely cut video ad, promising you fast and easy returns in exchange of a modes investment with some innovative trading software or an application that will trade instead of you.
Of course, you will be promised as well that everything is completely risk free and you might even be offered a managed account – a controversial practice, prohibited in the European Union and on many other regulated markets as well.
Bear in mind that most brokers, including legit ones, actually operate as market makers, which means they make money whenever you lose. So if a market maker offers you to manage your account, this is called conflict of interest, as the broker will actually have an incentive to lose your money.
But let us go back to our scam scenario. If you get hooked by the robo scam website ad and fill the simple registration form, leaving your phone number and e-mail, you will be instantly redirected to the website of a unregulated, offshore scam broker, where finally you will be asked to deposit your first 250 USD.
And take a note that no matter if you are offered a standard trading account, or you have agreed to have a managed account, your initial trading results will be spectacular and the money in your wallet will surely double in just a few days. That however will all be fake. Scammers will be manipulating your trading results with one clear objective – to trick you to deposit a more substantial sum.
And that is exactly what your “senior account manager” will be trying to convince you on the phone or with the help of a live chat – to deposit like at least 10 000 USD, “if you really want to make some serious cash”.
And strange as it may seem, but at that stage most people do invest that kind of money, without ever realizing they have been scammed until the very moment they try to withdraw some of their funds. Then all of a sudden it turns out they are unable to withdraw, because of some minimum trade volume requirement they have agreed with, when they have accepted their welcoming bonus in the first place.
The excuse might certainly be different, but basically you will not see a single penny back.
And be aware that scammers will be trying to squeeze you until the very end – they will ask you to pay some account manager’s fee or a withdraw fee, so be aware of that too – do not pay anything in addition.
What to do if scammed?
In case you have been scammed there is only one viable course of action – file for a charge back with your credit card company. The good news here is that recently both VISA and MasterCard extended the maximum period, in which you will be allowed to do that to 540 days.
Besides, scammers might even try to steal money from your bank account directly, if they have tricked you to tell them your credit card number or online banking password. If that has happened, immediately block your credit card and change your banking password.
And one more piece of advise – do not rely on the so called recovery agencies. They will not render you any service, but will simply charge you some money in advance and basically you will end up even deeper into the red.