Beware! Paragon-Finance 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.
Warning! Paragon-finance is an anonymous offshore Forex broker which shows many scam signs and red flags. First of all, the name they’ve chosen is very tricky, there are certain financial companies and business, throughout the world, bearing similar name which might confuse the people about this dodgy entity, making them believe that it is an authorized and legit enterprise. It is certain that Paragon-Finance is similar in appearance to many other confirmed scam Forex brokers, having the unfair clauses in its T&Cs, misleading the customers about the trading conditions, and most importantly bamboozling the people about their authorization and regulation. Find out everything you need to know about this risky Forex broker in the full Paragon-Finance review.
Paragon-Finance REGULATION AND SAFETY OF FUNDS
Paragon-Finance is an offshore Forex broker allegedly registered in the Commonwealth of Dominica, sharing the same headquarter address with other dodgy and unsafe brokers, such as Bid Broker Stocks and CFBroker. The exact place is as follows: 8 Copthall, Roseau Valley, 00152, Commonwealth of Dominica and the company standing behind this Forex broker is called Xertz Consulting. It is important for us to clarify that in this jurisdiction the FX and CFDs trading is not supervised and regulated in any way, effectively meaning that your funds are vulnerable and unsafe. There is absolutely no customer protection guaranteed, an offshore Forex broker might disappear at any moment, running away with your money leaving you with losses that most probably you won’t be able to recover.
Your funds are not safe if you make a deposit with Paragon-Finance, it is an unlicensed, unauthorized and unregulated offshore Forex broker, showing many scam signs which will be further presented in the Paragon-Finance review!
Avoid anonymous offshore Forex brokers and trust the ones which are legit, transparent and regulated in EU or UK, because these jurisdictions provide the safest environment for your funds. There are many stringent rules that the authorized Forex brokers are bound to comply with, put in place as customer protection measures. The licensed EU and UK brokers, for example, have to hold the clients funds in segregated accounts that are different from their own bank accounts, meaning that the deposits made by the customers cannot be used by the intermediary for operational transactions or investment. As a result, the funds are protected at all times, the Forex brokers are not exposed to unnecessary risks, the customers are in full control over their money, able to make withdrawals at any moment, and also the withdrawal processing time significantly decreases.
There are also money protection insurance funds inaugurated, such as ICF in Cyprus and FSCS in UK, which guarantee the deposits of the clients. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Paragon-Finance TRADING SOFTWARE
Paragon-Finance offers Metatrader4 accounts to its customers, Metatrader5 is not available. We downloaded their Desktop version but the file was corrupt, however, it was the distribution provided by Lotens Partners, a scam company standing behind AdamantFX and BSB Global,which was actually blacklisted by the FCA at the end of July this year. It is a very red flag, a hook up a scam company is an argument enough to stay away from Paragon-Finance.
Other than that, Paragon-Finance offers a web-based trading platform, which is very limited as to functionality, pretty amateur-ish, fairly speaking. The EUR/USD spread is 3 pips, while the leverage is fixed at 1:100 and you cannot change it! In fact, on their Main page Paragon-Finance advertises 1:400, which is an information discrepancy and a red flag!
Paragon-Finance DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit required is 250 USD. The mere funding method is their own Paragon Finance Wallet. Only Crypto funding is available, which is a very very red flag and obvious scam sign, stay away from Paragon-Finance and report immediately if a representative of theirs contact you!
No minimum withdrawal amount requirements and no withdrawal fees applied. The request processing time is said to be within 2-5 days in their T&Cs, but 4-7 days in their separate Deposit/Withdrawal Conditions page, which is yet another red flag and a warning to the traders!
You can see the conditions in the Term page:
Here are the withdrawal conditions in the Deposit page:
There are bonuses offered by Paragon-Finance, each account opened comes with a minimum of 30% deposit bonus. In order to make a withdrawal, however, you have to reach a minimum trading volume of 25/30 times the sum in your account, depending on condition page you are reading! We can assure you, that you will not be able to withdraw any money, because Paragon-Finance is a scam Forex broker.
The last red flag comes with the clause for Non-Deposited Funds. It is a word by word the same with the one you can find in the T&Cs of countless other brokers such as Revenur, Razer Markets, Promarketsonline, Glad2Trade, or Finlay.io, just to name a few. It also shows that Paragon-Finance allows an indebted account, meaning your losses might exceed the total sum deposited! You should always trade with brokers that are bound to provide negative balance protections to its customers!
HOW DOES THE SCAM WORK
The scam is a criminal activity, the scammers are trying to defraud people by making them believe that easy money can be made if the people trust them. Mostly, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. There is also no FX regulation in the offshore jurisdictions such as Vanuatu, Marshall Islands or St. Vincent and the Grenadines, three of the most popular destinations for shady and illegitimate enterprises. The lack of regulation makes the scammers invulnerable, as they are not going to bear the consequences of their felonious actions. Regulation and authorization means customer protection and safety, no financial regulator such as CySEC or FCA will make it possible for a scam Forex broker to conduct illicit activities.
Crypto currency funding went extremely popular among scammers, because this form of digital money is perfectly unregulated and the direct payments are totally anonymous. You should know that a deposit in Bitcoin, for example, is irrevocable, almost no chance is there for you to claim back your Cryptos. It is a very obvious scam sign if an alleged Forex broker is accepting only Crypto deposits as a funding method and you should not only stay away, but run away as quickly as possible from these scam creatures!
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!