Beware! ParantouxTrading 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.
ParantouxTrading says to be a leading broker offering a full line of managed products and tools designed to help investors take control of their financial future. They offer six account types with guaranteed profitability and assurance about the safety of their clients’ funds.
And ParantouxTrading says to run offices all over the globe – from 5th Avenue in New York to Hong Kong, Singapore and Gibraltar.
As exciting as all of this may sound, you should be aware that the ParantouxTrading website is virtually anonymous – they do not bother to disclose the name of their company, nor where it is incorporated, and whether they are licensed and authorized to provide financial services. On top of that ParantouxTrading has come into the spotlight of a recent investigation by the financial authorities in the UK, who have blacklisted them as scammers. So if you are about to deposit your funds with ParantouxTrading think again and read the following lines.
ParantouxTrading regulation & safety of funds
As we already noted the ParantouxTrading website is virtually anonymous – apart from the unverified postbox addresses there is no corporate information whatsoever. No company name, no license details. So imagine if you deposit your funds with an anonymous website, what will be your chances for a legal action if something goes wrong. You do not known who you are suing for a start. So basically depositing money with unregulated brokers, no matter what is their offer, is the equivalent of throwing your funds out of the balcony on a busy street.
Besides, if a broker operates on U.S. soil, as ParantouxTrading claims – 5th Avenue, remember – it has to be licensed as a Futures Commission Merchant (FCM) and a Retail Foreign Exchange Dealer (RFED) by the Commodity Futures Trading Commission (CFTC), as well as to be a member of the National Futures Association (NFA) – a membership that comes with a salty price tag. All U.S. brokers are required to maintain a minimum operational capital of no less than 20 000 000 USD, which explains why so few financial companies are licensed to target the U.S. market.
And here comes the warning issued by the the Financial Conduct Authority (FCA) in the UK. You can check it out on the screenshot below:
Brokers operating in the UK and the European Union should be licensed by the respective financial authorities as well, and ParantouxTrading are not only unregulated, but also anonymous. So make sure to avoid websites like this and trade only with properly licensed and authorized brokers like the once you can find in FCA registers or the registers of other reliable regulators like the Cyprus Securities and Exchange Commission (CySEC) or ASIC – the Australian Securities and Investments Commission.
ParantouxTrading deposit/withdrawal methods and fees
Let us say a few words about the managed accounts ParantouxTrading says to be offering, the starting one with a minimum deposit as high as 500 GBP. While there are legit social trading services like ZuluTrade, where you can chose to follow trades of professional traders with proven track record of performance, ParantouxTrading just wants you to deposit your funds with them, assuring you that they will take care of everything.
As we noted ParantouxTrading is not a legit and licensed money manager, nor a licensed broker. And because virtually all brokers are market makers and make money whenever traders lose, this explains why if you let markets makers like ParantouxTrading to manage your funds, they will have the incentive to mismanage them and lose them in their own pockets.
On top of that, as it turned out you will not be eligible to withdraw your own funds for at least 90 days – that is with ParantouxTrading starting account, and it is simply absurd. No legit broker will ever restrict your right to withdraw your own money. See for yourself:
How does the scam work?
People usually get scammed when they trust their funds with a unregulated broker, and that happens more often than you can imagine. Scammers have laid down traps all over the internet like for example the so called robo scam websites like Bitcoin Revival and Bitcoin Profit which will greet you with a convincing video story about how you can get instantly rich by investing a small amount with some revolutionary trading platform, managed by experienced traders or some ingenious trading robots, which are supposed to multiply your funds within days while you sit back and watch.
And all you will have to do in the beginning will be to fill a simple registration form with your e-mail and phone. And right away you will get transferred to the website of a unregulated, scam broker, and pretty soon will get a phone call by an “account manager” or a “market analyst”, who will urge you to open a trading account, if you have not already agreed to do that.
And bear in mind that your initial trades with the scammers will be amazingly profitable, and pretty soon the money in your trading account will seem to have doubled. That of course will be just a part of the scam. Scammers will be manipulating your trading account with the sole purpose to make you deposit more. And that is exactly what your “account manager” will be telling you all the time – if you want to make some real cash you will surely have to deposit more – like at least 10 000 USD or more.
And then probably you will not realize you have been scammed until the very moment you decide to withdraw some of your funds. Then, out of the blue, it will turn out this is not possible, because of some minimum trade volume requirement, possibly linked to a trading bonus, you have accepted without reading the fine script. The excuse may certainly be different, but the end result will always be the same – you will not be getting any money back.
What to do if scammed?
In case you have been scammed, probably the only viable way to get your deposit back is to file for a charge back with the bank, which has issued your credit card. Fortunately, according to the latest anti scam policies of both VISA and MasterCard you should be able to file for a charge back within 540 days. Still, do not waste any time and do it right away, because the charge back process will probably take some months.
And be aware that scammers may attempt to steal money directly from your bank account. So if you have been tricked to disclose your personal banking information like credit card numbers or online banking passwords, immediately block your credit card and change your passwords. Also, if under any pretext you have been tricked to install TeamViewer or Any Deck, which are remote control applications, delete the programs immediately.
Finally, do not trust the so called recovery agencies. They will no help you in any way, but will just collect some fees in advance, basically scamming you a second time.