Parantoux Capital review – 5 things you should know about parantouxcapital.com

Parantoux Capital review – 5 things you should know about parantouxcapital.com

Beware! Parantoux Capital is an offshore broker! Your investment may be at risk.

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Parantoux Capital is a Hong Kong based broker that offers managed trading services for retail traders and investors. They have different Managed Trading Accounts (MTAs) – Trial, Bronze, Silver, Gold, Platinum and Diamond – starting from a minimum investment of 500 GBP to up to 250,000 GBP. The accounts also differ in terms of their commission structure starting from 30% for the most basic ones to 5% for the Diamond one.

The application form for an MTA was extremely long and detailed. In addition to the personal information, such as names, address, phone numbers and email address, it is asking for marital status, number of dependents, employment status, where you work, your annual income and net worth and to upload ID, among others. They say it would require up to 48 hours to complete Know Your Customer (KYC) checks and eventually approve or refuse your application.

We decided to apply for a Free Demo account supplying only First and Last name and Email address, but 24 hours later there was still no response from the broker. Overall we were unable to open an account with the broker.

Parantoux Capital regulation & safety of funds

Parantoux Capital is registered with the Hong Kong Securities and Futures Commission (SFC) as an Asset Management Fund. The SFC requires that brokers maintain a minimum capital of 5 million HKD (about $640,000), and to participate in an Investor Compensation Fund, which covers up to $150,000 of the trading capital. Leveraged forex trading is not covered by these funds, however, only trading in securities and futures contracts.

Other watchdog agencies, such as the Financial Conduct Authority (FCA) in the UK and the Cyprus Securities and Exchange Commission (CySEC), impose much stricter rules to the companies they license. There are higher Minimum Capital Requirements (€730 000) to guarantee good financial standing, Client Account Segregation (clients’ money is kept separate from the broker’s operating funds) and Negative Balance Protection for traders (one may not lose more than the initially invested funds). The Compensation Schemes providing additional guarantee to clients’ funds up to a certain amount (85,000 GBP in the UK and 20,000 EUR in the EU) apply to forex trading too.

Parantoux Capital Trading Software

Parantoux Capital offers a couple of trading platforms that we are not familiar with on their website. Takion is advertised as a feature rich platform, which is totally customizable to meet the professional trader’s needs, with powerful scanners and API access for automated trading.

Sterling Trader Pro is presented as a full-featured Level II direct access trading platform designed for professionals who work with the rapidly moving electronic markets. The broker also claims to have proprietary API, scanners and idea generation tools that “help bring ideas to execution in a fraction of the time of most systems without compromising latency”. There are no download links, however, and since we were unable to open even a Demo account there was no way to test the features of the software.

Respected brokers usually offer the MetaTrader4 (MT4) or the MetaTrader5 (MT5) trading platform. MT4 is considered to be the leading platform worldwide, preferred by more than 80% of users. It features an intuitive, user-friendly interface, advanced charting and analysis tools, as well as copy- and auto-trading options. It can be further customized to create different trading strategies using its proprietary MQL4 programming language. Its successor, MT5, has certain advantages over the MT4. It enables traders to execute trades on different financial markets (including exchange-traded stocks) through a single account and has more trading instruments and more indicators than the older version.

Parantoux Capital Trading Conditions

There is not much information about the trading conditions the broker offers. They claim to utilize various stop-loss orders, which allow only 3% of the investor capital to be at risk at any given time. They do not mention spreads on forex currency pairs or what leverage can be used.

Regulated brokers usually offer spreads between one and two pips for the most traded currency pairs. Brokers licensed in the US have a leverage cap of 1:50 for non-professional traders, and the ones in the UK and EU is even lower – 1:30. High leverage is not something negative in itself, and there are actually regulated markets, such as Australia, which do not impose leverage caps. It can be quite risky, however, because although one can make profits with leveraged trading, he/she can also lose quite a lot, sometimes even more than initially invested.

Parantoux Capital Deposit/Withdrawal Methods And Fees

As we noted above opening a Trial account requires a minimum deposit of 500 GBP. This deposit is guaranteed and if the investor is not satisfied after 30 days, Parantoux Capital claims the initial deposit will be returned in full, even if the account balance is less than this initial deposit.

With the real accounts, however, there is no such guarantee and the minimum deposit requirements are much higher – the most basic one, Bronze, entails a minimum balance of 5,000 GBP and trading commission fees of 30% on profits. As the accounts go up, the minimum deposit requirements also grow, but the commission fees become lower.

There is no mention of what payment methods one can use to deposit or withdraw on the broker’s website. There are no credit card or other logos. Popular methods, such as PayPal and other preferred by traders e-wallets, eg. Skrill and Neteller are not advertised.

Parantoux Capital does not have a minimum withdrawal requirement, but in their Terms and Conditions we read that the client has the right to withdraw funds only after the initial 90 days for the Bronze account, 60 for the Silver and so on. The withdrawal request is carried out within 5 business days.

To the broker’s benefit we should note that apart from the commission fees they do not have any other fees – we did find anything about withdrawal fees or inactive account fees. We did not see any bonuses offered too – a common practice of scam brokers to lure unsuspecting investors. Still, there is not much information about this broker and the trading conditions they offer, so we cannot recommend it to our readers.

How does the scam work?

The most common scams are quite simple and straightforward and involve a multi-level scheme that usually goes by the following scenario. Internet users are lured by the numerous ads promising quick and easy fortunes by trading in the Forex world. When they click on such an ad they are redirected to a website tailored to the continuation of these false pledges, which asks them to register with their personal information. This data is then used by the scam brokers who immediately start to work on getting them to make an initial deposit of $200 – $300 by making even greater promises of big profits.

 

Once the users make their first deposit, the scam brokers get a fat commission on it. Now the senior scammers enter the scene. They are smooth talkers who will not stop at anything to convince traders that they are on their way to become very rich, if only they follow their advice and deposit more money to trade with.

 

Sooner or later the users will start suspecting something is not right and will want to withdraw their funds. This will not prove very easy, however. The scammer will do everything to delay their requests, by persuading them now is not the right time, asking for additional documents, or referring to specific withdrawal clauses. This is also part of the scam since the con-artists are trying to delay the users from filing for chargeback with their financial institution, and they miss the time frame for such chargeback, traders will lose their money without a chance of getting it back.

What to do if scammed?

If you’re scammed you should immediately file for a chargeback with your credit card provider. Good news is that VISA and MasterCard recently extended the chargeback period to a year and a half in an effort to combat online fraud. If you deposited with bitcoin or bank wire there is not much chance.

 

If you provided the scammers with any bank account or credit card details, such as security codes or passwords, make sure to cancel the card and talk to your bank. Also, if you are being approached by any “recovery agencies” promising to get your money back for a fee, do not fall for that. This is a piggyback scam, using the vulnerability of recently defrauded people and their hope the fraud may be reversed, and it will not recover your funds. These so-called agents will collect their fee and you will never hear from them again.

Rich Snippet Data
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Reviewed Broker
Parantoux Capital
Broker Rating
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