Scam Exposure: PaxForex Receives Critics for Withdrawal Issues

Undoubtedly, with a daily trading turnover of 6.3 trillion U.S. Dollars, the forex market offers countless opportunities for investors to generate handsome returns. However, being the world's most liquid market, it also becomes a hot spot for money stealers to come into play. On top of that, brokers like PaxForex can turn your trading journey into a horrible experience. Let us unleash why we believe PaxForex is a scam.

PaxForex.com - Overview

PaxForex is an offshore forex and CFD broker founded in 2011. The company is headquartered in St. Vincent and Grenadines. While clients can trade different financial instruments across various asset classes, including forex, indices, stocks, and spot metals, the option of social trading is also available at PaxForex. The company projects itself to be the market leader providing multiple account types, advanced trading features, and rich educational resources. However, the broker doesn't share any information concerning its regulation status on its website.

Is PaxForex Regulated？

No, PaxForex is not regulated anywhere in the world. The company claims to have been registered with St. Vincent and Grenadines Financial Services Authority, but it doesn't appear in the search result on the SVGFSA website. Moreover, St. Vincent and the Grenadines Financial Services Authority do not grant licenses to foreign exchanges or brokerage firms. Neither SVGFSA regulates nor monitors businesses engaged in such activities.

What do clients say about PaxForex.com？

PaxForex is one of the poorly rated companies we've reviewed so far. Investors repeatedly provide negative feedback on multiple social media and digital platforms

While clients complain about its trade execution policy, the company also receives critics for withdrawal issues. Let us share some screenshots.

What makes PaxForex a Scam Broker？

First, the company displays false information on its website concerning its registration with St. Vincent and Grenadines Financial Services Authority. For instance, it says PaxForex is a trading name of Laino Group register number 21973 IBC 2014. However, we couldn't find any entity appearing with this name on the SVGFSA website.

Secondly, the firm has been blacklisted by various regulators around the globe.

Lastly, the most prevalent proof of the broker being a scam entity is the seizure of the company's official domain www.PaxForex.com by the Federal Bureau of Investigation in line with the warrant issued by the United States District Court for the Southern District of Texas.

Not to mention, the company doesn't refrain from finding ways to scam clients. It keeps changing its domain names and continues its operations shamelessly. For instance, the broker is currently accessible on www.PaxForex.org.

Bottom line

Differentiating between a legit or a scam broker can be tricky, especially for newbies. However, some apparent signs can help you instantly spot a shabby broker. For instance, scam brokers do not have regulations from well-reputed regulatory authorities like FCA, ASIC, or CySEC. Further, they prefer to register offshore to avoid any legal prosecution. If you want to know more about regulation, you can see our “Regulators”.