Beware! Pari Fx Trade is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Pari Fx Trade says to be offering a wide variety of forex pairs and CFDs – well over 250, including stocks, precious metals like silver and gold, oil, natural gas, coffee, and even major crypto coins like Bitcoin, Ethereum and Ripple. All of that comes with leverage of up to 1:400 and the MetaTrader4 trading platform.
On top of that Pari Fx Trade says to be selling binary options and to offer managed accounts as well.
As good as all of this may sound there are a number of outstanding questions concerning the legitimacy of the broker, not to mention a fresh warning by the Cyprus Securities and Exchange Commission (CySEC). So if you are considering depositing your money with them be sure to read the following paragraphs.
Pari Fx Trade regulation & safety of funds
Pari Fx Trade says to be regulated by several institutions among which the National Futures Association (NFA) in the US and the Cyprus Securities and Exchange Commission (CySEC). And it also says to be represented by two companies – Pari Fx Trade LLC and Pari Fx Trade Holding Limited.
When we checked the NFA and the CySEC registers however, it turned out Pari Fx Trade is using the license details of completely different companies – BDSWISS LLC and Bdswiss Holding Plc, which have absolutely nothing to do with our broker.
On top of that we came across a fresh warning by CySEC against Pari Fx Trade – stating exactly this, that the website is not licensed by the regulator. See for yourself:
So basically here we are dealing with a clone website, which uses corporate and other details of legit businesses with the sole intention to defraud investors.
Otherwise in the contact section of the website we came across yet another company – EXPERT Ltd, with a Seychelles address – which claims to be regulated on Mauritius. Even if that information is correct, however, an offshore registration combined with the above mentioned attempt to mislead potential clients, does not change our conviction that here we are dealing with scammers.
Pari Fx Trade deposit/withdrawal methods and fees
Because we have already established that we are dealing with a clone website, we will not discuss their payment methods or minimum deposit requirement. Just bear in mind that with most brokers you will be able to fund your account with major cards like VISA and MasterCard, bank wire and popular e-wallets like Neteller, Skrill and PayPal.
There is yet another aspect of the Pari Fx Trade offer, however, that you should be especially wary about. They say to be offering managed accounts, where you just deposit your funds and they take care of them. That is another classical scam approach. Most brokers, even legit ones, act as market makers, which means they make money whenever traders lose. So if a market maker offers you to manage your account, it by definition is in a conflict of interest.
How does the scam work?
If you happen to come across one of those sites like Bitcoin Profit and Brexit Trader, which we call “robo scam websites”, probably you will watch one of those cheesy videos telling you how easily you can get instantly rich by investing with some ground braking trading technology. And all you have to do is just leave your e-mail and phone.
And if you do register you will be redirected to the website of a unregulated scam broker, where in exchange of an initial deposit of about 250 USD you will be awarded a trading account.
Scammers may offer to manage your account or they may leave you to trade by yourself. In both cases their goal will be invariably the same – to make you invest a large amount. So do not be surprised how successful your initial trades will be – all of that will be just part of the scam.
And you will be getting phone calls as well. It will be your “senior account manager” with the latest trading signals, who however will basically be telling you that if you really want to make some real cash, you will definitely have to invest more – like at least 10 000 USD.
And most people do invest as much as they can without ever realizing they have been scammed until the very moment they decide to withdraw some of their funds. Than all of their withdraw requests will be invariably canceled, because for example they have not met some minimum trade volume requirement, linked to their welcoming bonus. The excuses might be various, but the result will always be the same. Scammers will not pay you a single dollar back.
What to do if scammed?
Although in case you have been scammed, the chances to recover your funds will not be great, you have one option if your payment was made with a major card like VISA or MasterCard – you can file for a charge back with your credit card company. The good news here is that both MasterCard and VISA will allow you to file for a charge back within 540 days of your deposit.
And if scammers have obtained your personal banking detail like your credit card number or online banking password, be sure to block your credit card and change your password. And if by any chance scammers have tricked you to install Team Viewer delete the program immediately.
And one final note. Do not seek the services of the so called recovery agencies. They will not recover your funds. They will just charge you some fees in advance, basically scamming you a second time.