PaxForex Review 2018
What is PaxForex, we hear you ask? It is an offshore foreign exchange and cryptocurrency broker based in Saint Vincent and the Grenadines. Established in 2010, it has only recently started to offer cryptocurrency trading on Bitcoin and Ethereum using contracts for difference (CFDs). We have conducted a comprehensive review of the PaxForex trading system to give you a better idea of its platform, fees and industry reputation. Check out the broker table below to get a brief comparison of PaxForex’s features against some of the leading brokers.
PaxForex quick facts
Overall score * to *****
$100 (Mini account)
Bank transfer, Credit card, Neteller, Skrill, WebMoney
Comparatively low minimum deposits
Integration with the MetaTrader 4 Platform
How we reviewed PaxForex
We know, choosing a cryptocurrency exchange or broker is not the easiest task in the world. That’s because there are so many different brokers now operating in the industry, each jostling for your custom. Our comprehensive PaxForex review will help you cut through the noise and better understand the pros and cons of choosing the PaxForex platform to invest in cryptocurrency for the first time. Our Paxforex review covers everything from the choice of crypto coins on offer, PaxForex fees, app and options and how much you can trust PaxForex with your personal funds.
PaxForex was established in 2010 by a group of professional traders. The company’s owners have significant expertise in forex markets as well as stocks, CFDs and options both as traders and brokers. That’s because many of the senior members of the PaxForex team have previously held senior roles with some of the largest forex brokers in the trading industry.
PaxForex is the trading name of the Laino Group Ltd and although it is registered in the Caribbean, its headquarters are in Montenegro, although it also boasts an office in London.
Regulation & Safety
The geographical location of the PaxForex headquarters in Montenegro means that it is not regulated by a financial authority of global recognition. This should be a significant red flag for anyone thinking of using the PaxForex app to invest in major cryptocurrencies. The lack of regulation means that courts have no jurisdiction over how they store or use your money in your trading account. PaxForex states it holds customer funds in segregated “Clients Accounts” held with many “investment grade European banks” that are “closely monitored”.
At the time of writing, Montenegro has officially applied to become a fully-fledging member of the European Union (EU) and, should their membership be ratified in Brussels, the Directive 2004/39/EC on Markets in Financial Instruments (MiFID) will be valid for all day-to-day operations on the PaxForex app. However, the Directive isn’t valid at the moment.
It’s important to avoid unregulated cryptocurrency brokers because you simply cannot be sure how your broker will treat your finances and personal information. We want you to be safe, so keep in mind that a regulated, audited broker like the eToro app offers more peace of mind.
Let’s look at the range of transaction fees PaxForex customers incur when buying and selling cryptocurrency. Alongside traditional bank wire transfers and credit/debit cards, PaxForex also welcomes the use of e-wallets. It also supports multiple currencies, including the USD, GBP and EUR. In most cases, PaxForex does not charge withdrawal fees, but there are fees for credit and debit card deposits and withdrawals, and Skrill and Neteller deposits.
Bank commission only
3-5 working days
$10-$299 (6%) $300+ (6.5%)
Within 1 day
Within 1 day
According to the PaxForex website, the broker offers more than a dozen ways to fund your PaxForex trading account:
Disappointingly, the most common e-wallets used to buy Bitcoin such as Skrill and the Neteller platform carry frustrating fees of 2.9-3.9% and 3.2-3.7% respectively. The minimum deposit amount for the majority of payment methods at PaxForex is $10 or $30 respectively.
Minimum deposits for bank transfers are set much higher at $100. The minimum Paxforex withdrawal amount is also $10, although it again increases to $100 for bank transfers as well as credit and debit cards.
The PaxForex customer support team is available 24 hours a day between Monday and Friday. You can speak with the team via live chat directly on the PaxForex mobile or desktop website and via Skype or telephone conversations. It is also possible to email the team and request a call-back from a member of the team when it is most convenient for you.
Each PaxForex trading user receives their own PaxForex account manager who acts as their first point of contact for any issues.
Perhaps the most interesting element of PaxForex’s customer support is its comprehensive trading guide that’s available to both newcomers and experienced traders. There is a regularly updated library of news articles, blogs and recommendations along with a collection of infographics, designed to make it easier for newcomers to digest trading concepts. Its daily analysis of trading angles can be particularly useful to those just starting out and looking for a steer in the right direction from the professionals.
Unique features & Trading Platform
If you don’t wish to physically own cryptocurrencies and are more interested in profiting from the price action in each individual cryptocurrency market, PaxForex might just appeal to you. Like the eToro trading platform, PaxForex customers can trade Bitcoin and Ethereum using CFDs which are pegged against the price action rather than being physical crypto coins bought from an exchange and stored in a cryptocurrency wallet.
There are three different PaxForex accounts available to cryptocurrency investors:
The Mini account is geared towards those new to cryptocurrency trading. With a minimum deposit of only $10, it is a good starting point for those looking to dabble without committing too many funds up front. The downside is the minimum spreads for this account type begins at 1.4 pips, although the minimum lot volume for this account type is 0.01.
The Standard account is for those who may have invested in cryptocurrencies before or have sizeable funds with which to buy Bitcoin or buy Ethereum. The minimum deposit is $2,000 and the main benefit of the Standard account is that both cryptocurrencies are available with minimum spreads of just 0.4. The minimum lot volume for this account type of 0.1.
PaxForex’s VIP account is designed for high-value cryptocurrency traders looking to regularly recycle thousands of dollars through the markets. The minimum deposit is $10,000, with Bitcoin and Ethereum both available to trade with minimum spreads of 0.4. The minimum lot volume for this account type is 0.01.
How does PaxForex compare to eToro?
If you have read our comprehensive eToro review, where we test its social trading community and the eToro app, you’ll already know that eToro is currently our top choice to trade Bitcoin and other cryptocurrency. But is PaxForex a better option? Let’s take a look at eToro.
The first interesting comparison between PaxForex and eToro is that although the former offers minimum deposits of just $10 for Mini account members, eToro offers minimum deposits of just $50 across the board. That’s regardless of whether a member plans to invest $100 or $10,000 in buying and selling the Bitcoin currency.
One bonus for the former is PaxForex leverage. PaxForex traders can receive maximum leverage of 1:500, available to all account holders from Mini to VIP. The maximum leverage offered to eToro members is 1:400, although this is still quite good in the context of the financial trading industry.
We’ve already mentioned that PaxForex is 100% unregulated and registered offshore. The uncertainty of PaxForex could not be more different than the clarity and transparency offered to eToro members. eToro is regulated by the UK’s FCA and Cyprus’ CySEC. The former is one of the most reputable authorities in the global industry. Both the FCA and CySEC enforce strict rules on keeping customer funds separate from the broker’s operating funds. Furthermore, eToro members are protected up to £50,000 by the Financial Services Compensation Scheme (FSCS) in the event the company defaults. Put simply, if you are wondering ‘is eToro safe?’, the answer is emphatically yes. But if you’re wondering ‘is PaxForex safe?’ the answer is that we have no way of knowing for sure – so it’s a no.
In summary, although PaxForex offers some competitive spreads and high leverage levels, it’s hard to compete with eToro’s 10 years of operational expertise, its reputation as pioneers of social trading communities and the safety that the eToro site ensures.
How to sign up in 3 quick steps
1. Click ‘Open trading account’
On the PaxForex homepage, you will clearly see a green button that says ‘Open Trading Account’. Click this button to begin the four-stage sign-up process, where you will be asked to fill out your personal contact details.
2. Fill out your personal details
Within the PaxForex client area, start the four-stage sign-up process by filling out your details. You can quickly complete this form using a Facebook or Google+ account.
3. Agree to the Terms of Service
PaxForex advantages & disadvantages
– Low spreads (0.4)- Industry leading leverage (1:500)- Free demo accounts- Integrated with MetaTrader 4- Wide range of payment methods
Not FCA or CySEC regulatedNo multiple choices of trading platformsWeb trading not available
Conclusion: Is PaxForex a good place to buy cryptocurrencies?
To conclude our PaxForex review, the PaxForex trading platform would appear to offer some attractive trading conditions to cryptocurrency investors new and experienced. The high levels of leverage allow experienced traders to maximise their positions, although the fact that 1:500 leverage is offered even to beginner traders on the Mini account is somewhat concerning. It is good to see that more experienced traders using the Standard and VIP accounts get access to competitive spreads as low as 0.4.
If you are well-versed with using the MetaTrader 4 (MT4) trading platform, PaxForex could be a suitable cryptocurrency broker for you. MT4 offers an intuitive interface with three key types of charts available – bars, line charts and candlesticks. There are over 50 indicators built into the software to help give PaxForex traders pinpoint cryptocurrency trading angles. Furthermore, you can also use MT4 to start automating your trades for faster execution of opening and closing positions.
Despite these benefits, we would not recommend PaxForex overall given its unregulated nature. If you still like the idea of trading cryptocurrencies such as Ethereum and Bitcoin using CFDs, be sure to give the eToro trading community a try. As you can read in our eToro review, with millions of cryptocurrency traders in over 100 countries, it is the world’s largest social trading community. It allows members to interact about a variety of crypto coins and altcoins, debating short and long-term trading angles. Put simply, as an eToro member you never have to worry about trading alone.
Although PaxForex offers free trading courses and research, eToro allows members of all levels to actively follow cryptocurrency trades made by profitable professionals. As it’s our award-winning cryptocurrency broker and exchange for 2018, we thoroughly recommend that you sign up to eToro to discover smarter strategies for investing in Bitcoin and other digital assets. You can even make the most of their free $100,000 demo account to practice your investment strategies before using real money.