Beware! Paxocapital 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.
Paxocapital is a forex broker trading in commodities, forex, indices and stocks. Our first impression from this broker is that there is a lot of information missing, as well as broken links that do not allow to register and open an account. Clearly, this is a forex broker you should not trade with.
Paxocapital Regulation and safety of funds
The only information about this company that we could find is that BS Creative Management Ltd is the holder of the trade name Paxocapital. Where this company is located, registered and regulated, is unknown. A forex broker without proper license is not safe to trade with.
Instead, we suggest that you research and find a licensed broker from on of the well-established jurisdictions which offer a guarantee for the protection of their clients’ funds. If you look into the list of brokers regulated by CySEC and FCA, you will find that they are reliable and that your money will be safe if you choose to trade with them. To be licensed, EU and UK forex brokers must have an initial capital of 730,000 EUR and they must contribute to a compensation fund from which the clients will be compensated in case of a bankruptcy. For example, in case of trouble, clients of a licensed broker regulated by FCA will be compensated by up to 85,000 GBP per person and in EU, clients will be compensated up to 20,000 EUR per person if the broker is regulated by CySEC. These are the best conditions offered to forex traders and you are advised to research and select such broker. In US, there is also a way of protection against scammers as the licensed brokers their must have an initial capital of no less than $20 million. Also, in Australia, forex brokers must have an initial capital of 1 million AUD. Among other things, these huge amounts serve as a screen off for scammers as they wouldn’t invest so much money just to look legit.
Paxocapital Trading software
As per the information provided on the company’s website, the trading platform offered to its clients is Paxocapital desktop, mobile and web trader. As we already explained, due to broken links on the company’s website, it was not possible to register an account, not download the platform.
The best trading platforms are the MetaTrader 4 and MetaTrader 5. They have many proven qualities and are the most preferred platforms (around 80% of brokers use them). This is not by chance, as both platform offer some excellent trading tools and instruments, such as auto trading option, an app market, a financial calendar, VPS, code base with customs scripts, and an excellent array of charting options containing indicators and analytic tools that help predict the future direction of exchange rates and make a profit. What we can advise our readers here is to always look for a licensed broker that offers either MT4 or MT5 trading platforms.
However, in the account types information (in the last screenshot), we saw that the leverage offered by this broker is sky high – 1:200 for the Bronze account, 1:300 for the Silver account, 1:400 for the Gold account and 1:500 for the Black account. Needless to say, trading when using such high leverage is very risky. Some traders get tempted, hoping to make a big win, only to realise that it brings big loss – statistically, over 70% of traders lose in transactions. Please be cautious when it comes to leverage and choose a licensed broker that offers low leverage. For your information, in EU, brokers cannot exceed leverage higher than 1:30 and in US, higher than 1:50. These are precautions for the safety of your funds.
Paxocapital Deposit/Withdrawal methods and fees
Paxocapital offers 4 different types of trading accounts (screenshot below) – Bronze, Silver, Gold and Black. The minimum initial deposit is 500 EUR for the Bronze account. We consider this minimum initial deposit to be rather high. The other initial deposits are 5,000 EUR for the Silver and 25,000 EUR for the Gold account. The Black account is ‘invitations only’.
As per the information provided by the company, to feed their account, clients can use a credit/debit card, wire transfers, SEPA transfers, e-wallets or cryptocurrency.
The minimum withdrawal amount is $50 and the company reserves the right to charge a fixed commission of $30 for every withdrawal request which seems a too much if the client wants to withdraw funds more often.
There is no information about the the withdrawal request processing time.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or the social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.