Parenta Financial Services review – 5 things you should know about parentafinancialservicesltd.com

Beware! Parenta Financial Services is an offshore broker! Your investment may be at risk.

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Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

Parenta Financial Services assures us that it would be a good idea to invest in the financial markets through this forex broker. But in preparing this review, we found that Parenta Financial Services is not a legitimate financial services provider at all. Let’s take a detailed look at why it’s in your best interest to stay away from Parenta Financial Services and turn to a more trustworthy investment intermediary.

Parenta Financial Services Regulation and safety of funds

The most important information about a financial services provider is its regulatory status. Licensed brokers provide detailed information about which company runs them, where it is based, which jurisdictions it is authorised in and which regulatory bodies oversee its activities.

However, this website does not provide any specific information about Parenta Financial Services Limited company. In fact, we found no evidence that this legal entity actually exists.

Parenta Financial Services claims to be based in London.

In order for this to be true, the broker needs a licence from the Financial Conduct Authority. But a check of the regulator’s register reveals a warning that Parenta Financial Services is not authorised.

If you intend to invest in financial instruments, you should beware of the many fake brokers lurking online. Always check carefully whether the broker you choose really has the necessary licences. There are numerous benefits to working with a company that is truly authorised and supervised by a regulatory institution such as the UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).

As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.

Parenta Financial Services Trading software

Parenta Financial Services implements a standard web-based trading platform. This is how it looks like:

While the platform has the basic features for placing orders, customising charts and application of technical indicators, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.

It should be noted that the presence of a trading platform does not make this website any more legitimate and does not guarantee that this alleged broker offers real trading. Many scammers use rigged trading software to fool their victims that their money is being invested.

Parenta Financial Services Trading instruments

In the trading software we see financial instruments of all asset classes, including cryptocurrencies. This is also evidence that Parenta Financial Services could not really be a licensed broker operating in the UK. The UK FCA prohibits brokers from offering crypto derivatives trading to retail customers.

Parenta Financial Services Spreads and cost of trading

Parenta Financial Services does not provide any information on the trading price and other parameters. In the trading platform we see a fairly low spread of 0.7 pips, but we do not know if the broker charges additional commissions. More importantly, we have no guarantees that this trade is real and not fictitious.

Parenta Financial Services Maximum leverage

A high leverage of 1:200 is set in the Parenta Financial Services trading software. This is also a clue that this is not the regulated broker it claims to be.

The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets.

Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.

If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.

Parenta Financial Services Deposit and withdrawal methods

Parenta Financial Services does not provide any information on payment methods and fees. The deposit menu only allows you to submit a deposit application.

Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, Skrill or Neteller. Scammers prefer cryptocurrencies because these transactions are not subject to refunds.

Parenta Financial Services Minimum deposit

Parenta Financial Services specifies a minimum deposit of 100 GBP, which is the industry standard. But this means that for the same amount you could open a trading account with an established and duly licensed forex broker. Some of the leading brands in the industry offer Micro and Cent accounts with a very low entry threshold that are suitable for novice investors.

Parenta Financial Services Withdrawal requirements

Parenta Financial Services does not specify extraordinary conditions for withdrawal. But these types of scams always surprise you with hidden fees and other tricks that prevent you from withdrawing your money back.