Beware! Pacific Broker 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.
In this review, we are going to look through Pacific Broker, allegedly a UK entity regulated in Cyprus, considering the information on their website. They offer Forex and CFDs trading on MetaTrader4. Read the full Pacific Broker to learn all the details you need to know about this business.
Pacific Broker REGULATION AND SAFETY OF FUNDS
Pacific Broker claims to be a Cyprus company, but they list a UK address on their website. Both countries are stringently regulated, so a company has to meet many rules and requirements to get a license there. For example, in both countries, brokers have to provide 730 000 EUR in paid-up capital, keep traders’ accounts segregated, provide negative balance protection etc. We researched but found nothing about this FX company in the registries. Your funds are not safe if you deposit with Pacific Broker because it’s unlicensed and unregulated. We believe it’s a scam for the fraudulent claims they make.
Avoid them and see the EU brokers and the British brokers we recommend. The European financial companies are covered by the deposit insurance funds laid down to protect traders’ money. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British guarantees are up to 85 000 GBP per person. Consider this fact before opening an account with a broker.
Pacific Broker TRADING SOFTWARE
Pacific Broker’s clients can trade on MetaTrader4, which is the only positive feature we can note down. The EUR/USD spread is floating around 1 pip, which is considered a favourable Buy/Sell difference reducing the trading costs. However, many legit brokers offer 1 pip and below with their micro accounts, so it’s effortless to find a better provider.
The MetaTrader4 brokers and MetaTrader5 brokers are the market leaders because MT4 is the best platform for retail traders. It’s reliable and features many sophisticated trading tools such as Expert Advisors and Algo trading. They also developed a marketplace where you can find more than 10 000 trading apps.
The maximum leverage is 1:500, which is a level exceptionally risky for traders. The dangers involved motivated many financial authorities to restrict the leverage on the regulated markets.
As a result, the Australian brokers (to come in effect later in 2021) and the European brokers are limited to 1:30, while the Canadian brokers and the US brokers can’t offer more than 1:50. The Swiss brokers aren’t restricted, but there is a 20 million francs capital requirement in Switzerland, which drives scammers away.
Pacific Broker DEPOSIT/WITHDRAW METHODS AND FEES
There is no minimum deposit requirement, but we doubt that’s true. Usually, the information on the shady brokers’ websites does not correspond with the actual trading conditions. The funding methods are said to be Wire Transfers, Neteller, Skrill and Credit/Debit cards– by far the safest option allowing a chargeback within 540 days from the transfer date.
Pacific Broker doesn’t bring legal documents forth, which confirms it’s an illegal enterprise and highly likely a scam. The T&Cs, User Agreement, Client agreement and so on serve as contracts between both parties, and traders should never deal with brokers refusing to present such documents. Also, the absence leaves traders unaware of critical trading conditions such as withdrawal provisions, fees, bonuses etc.
Overall, Pacific Broker is a shady broker fraudulently claiming to be a European regulated company. Stay safe and avoid this chunky business.
HOW DOES THE SCAM WORK
New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Scammers usually find their victims through ads on social media or other websites, which is the latest trend. Classical tactics, such as cold calling, became less widespread as the Internet is prevalent nowadays. The offers look legit and present exciting opportunities to invest money in the Forex market. Traders are reassured that the people behind the broker have an excellent track record, promising high returns or seamless trading. They claim that there are no problems when trading with them, concealing that the FX market is utterly risky.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or send a tiny amount of money. It’s also a common manoeuvre for scammers to ask for more money to sort the withdrawals out. Either way, traders are likely to lose some or all of the capital invested. At some point, when the fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. 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 the necessary 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, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!