Beware! Paxton.Trade 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.
Paxton.Trade is a so-called modern scammer broker. It’s an ironic thing, but an effective one. First of all, the website is very clean, and there is an effort put into it, making the broker especially dangerous since it will make the effort. It is important to always make sure a broker is regulated before investing into it, especially when it all looks too good to be true. Read the review for all the necessary details.
The registration process is pretty much what we expect from your common unlicensed and offshore broker. That does not mean that we tried to register; we tried and failed in the end due to a requirement set by the company. Paxton.Trade requires users to provide copies of IDs, which is something that we cannot provide this broker with for who knows what it will do with it. We do not trust the broker to be giving it sensitive info.
So we have to rely on the website of the broker for all the trading and payment information. Please note that the trading conditions laid on the site might not be accurate, but exaggerated in order to lure users.
With that said, the broker claim to be offering stocks, commodities, indices, and bonds. Forex pairs are mentioned but vaguely. There are no spreads indicated anywhere, only that they are “floating”. While opening an account, we saw that the leverage was capped at 1:500 for all users.
The website of the broker is available in English, Vietnamese, and Portuguese.
PAXTON.TRADE REGULATION AND SAFETY OF FUNDS
The firm is allegedly regulated in Mauritius by the Financial Services Commission. However, there is no proof of this, unless you consider a simple claim to be enough evidence.
The Financial Services Commission of Mauritius is one of the few offshore regulators that does a decent job, but the issue here is that it does not license Paxton.Trade.
Other than that there is the all-present vague info that most unlicensed brokers include for the purpose of filling their site. This type of information is targeted towards novice investors and even non-traders to confuse them enough into thinking the broker is partly legit. And it works most of the time!
Paxton.Trade is definitely not regulated anywhere and is a risk to all invested capital.
Only trust regulated brokers. This means that the first thing you should do with any broker you come across that seems interesting is to check for a license. Any UK, EU, US, or Aussie-regulated ones will do, although there are dozens of other great regulators out there! Regulated brokers are bound by the law to be as objective and secure as possible while providing a fair FX trading environment for all users. Any sort of deception or theft will be dealt with heavy fines and other legal penalties that may result in the impound of the entire company. Furthermore, the likes of the FCA and CySEC offer client compensation schemes that give users a financial safety net should their broker fall into insolvency. The FCA guarantees up to £85 000, while CySEC guarantees up to €20 000 per person.
PAXTON.TRADE TRADING SOFTWARE
Without logging in, there is no way to make sure that there is a trading platform. But from what we have seen on the website there is an MT4 readily available.
The broker really has an MT4, and there is proof of it. Paxton.Trade even offers a web version of the MetaQuotes beast.
However, the MT4 is not a reason to invest in the broker. It remains unregulated and a risk to all deposits!
PAXTON.TRADE DEPOSIT/WITHDRAW METHODS AND FEES
We just want to say that all the following payment info is taken straight from the website. This means that everything we are to reveal might be far from the truth. Be warned!
With that said, it turns out that the broker offers very little insight into its payment conditions. In fact, the only real place where we can take some payment details are the legal documents, and even they don’t offer much.
From the terms and conditions, we learn of card payments and bank transfers. The broker warns in the terms and conditions that it may share charges with its affiliates and other third parties.
And that’s that! There are no more payment conditions to be revealed. We would have said that it is a shame, but who really cares? The broker is unregulated and a risk, not to mention most probably a scam, so investing should be avoided at all costs!
HOW DOES THE SCAM WORK
Scams function in much the same way they have worked since their conception. The just of it is as follows: the user gets slapped with false promises, gets to invest into one, and is then left without money.
These false promises take the form of online ads that are very attractive and alluring, so much so that even we find them appealing. And they will continue to evolve!
Some of these ads lead to investment scams, sources where the user will be encouraged to provide contact information that will be used to solicit her into investing.
The whole process of solicitation is where the scammers are best at. Sometimes they have whole teams of trained experts whose day-to-day job is to convince users to invest. They are further motivated by the fact that they receive a hefty commission from each deposit. There are scripts with psychological techniques and tricks that are effective against novice investors that still work to this day, judging by the statistics of how many people get scammed per yearly quarter.
The expert scammers move into position when the user is ready to invest for a second or third time. Here the goal of the game shifts to the quality of the deposit. All subsequent deposits should be higher, and the experts know how to bring about this.
All withdrawals will be stalled or held back, even if at times the users get a taste back- this is used to keep them invested in the scheme. Clients will find they have a very hard time withdrawing!
WHAT TO DO IF SCAMMED
A credit card or debit card chargeback should be the first place to look at. MasterCard and VISA have a chargeback period of 540 days. This method is the most used one, and certain scammer brokers even move to act against it, so be sure to act quick!
getting your money back that was originally lost through bank transfers is hard but not impossible. Users should first change their bank account username and pass, and then contact the bank to set a plan of action with the institution.
Unfortunately, crypto-based deposits are untraceable, and the only way to get them back is from out of the goodwill of the scammers. Safet to say, that scammer will rarely if ever deter from their in-born fraudulent nature.
Finally, do not give your money or payment details to recovery agents or agencies. They will promise to reimburse you by tracing the lost investments but will ask for a service fee. Once the fee is paid, they will disappear with the money!