They use a Crystal Ball to Pre-Verify clients,
which is why you got onboard so quickly !!!
[EDIT] These are technologies which are illegal
in the U.S. and only available Offshore !
[CORRECTION] In the U.S. you are subject
to “surveillance capitalism” so they always
know what you’re just about to do !! LOL
hyperscalper
I know someone who has 5-6 figures in PaxForex who is using a VIP account. He said spreads are low and withdrawals are fast, even large amounts. He seemed to trust them a lot, but I was skeptical because the thread says that they are a market maker (Dealing-Desk) broker. I told him this and he asked his account manager about it.
The account manager replied saying they are a real ECN/STP model, not a dealing desk, and mentioned that they have been in the market for 8 years already.
Apparently, PaxForex is not a market-maker(?) at least for VIP accounts(?) Can anyone verify this?
P.S. Awesome thread by the way.
Regarding PaxForex (one of our Group 1 brokers):
I’ll look into the market-maker designation. Thanks for your post.
Welcome to the forum, and welcome to our Offshore Broker thread.
The following data, copied and pasted from FX-C.com, appears accurate.
(Click the images to enlarge them.)
Notice the following:
None of the various PaxForex accounts charge commissions…The defining characteristics of ECN accounts are that (a) spreads are wholesale (without retail mark-up), (b) spreads are never fixed, and © the broker is compensated by commissions (only). This does not describe PaxForex, and PaxForex is not an ECN broker.
For large trades in large accounts (such as a PaxForex VIP account), a market-maker needs the ability to immediately offload positions which cannot be offset in-house, and are too large to hold naked. Such trades are typically passed directly upstream to a liquidity provider, making the broker in these cases (only) an STP (straight-through processing) broker. PaxForex handles large trades in this fashion. However, there is every indication that most trades are handled by PaxForex using the market-maker business model.
It appears that PaxForex is physically located somewhere in eastern Europe (GMT+2 time zone), with customer service facilities in Isle of Man, and corporate registration (only) in SVG.
The parent of PaxForex is Laino Group, about which I have found no information.
I wanted to update the group. I got all of my balance from Capital City Markets today. Took just under a month from start to finish, which isn’t acceptable, but I got the $$ which is of course the most important thing. My experience with execution, etc was good. Their spreads are too high, especially for an offshore broker, but it was all upfront. Now the question is, do I put my $$ into OANDA, or go back offshore? Thanks again to the contributors of this thread (especially Clint).
As we have known for many months, the nanny state is targeting payment processors as a way of isolating offshore brokers from their U.S. clients.
Apparently, the nanny state now “owns” MasterCard. Visa will likely fall into line shortly.
After reading this Finance Magnates article, you will have more questions than answers. Finance Magnates can’t possibly detail the status of every offshore broker, or every offshore jurisdiction. To find out how this new MasterCard policy might affect your broker, and your account, you will need to talk to your broker directly.
This new MasterCard policy will take effect in 6 months, so offshore brokers have some time to prepare, and to adjust as needed. Consequently, it’s quite probable that your broker has not yet determined their own response to this latest assault by the nanny state. And, therefore, your broker may not be able to answer all your questions at this time.
But, you need to be aware of what’s coming, and you need to be prepared to do your own due diligence regarding threats to the money-transfer pipeline between you and your broker.
[U]Excerpts from the article[/U] –
"Earlier this week we broke the news that Mastercard is taking action to classify certain transactions as high risk and therefore provide ample time for chargebacks on the part of depositors. Today we can confirm what we suspected a couple of days ago: the effort from the card issuer is part of a well-coordinated campaign that includes several regulators and government agencies.
"Thus, the likelihood that VISA will follow up with a warning of its own against CFD, forex, crypto, binary options brokers and ICOs is a virtual certainty.
“In a letter from a partner bank to a payment processor that is clarifying the stance of the institution on Mastercard’s statement, the new and restricted rules for the so-called “high-risk merchants” are elaborated upon.”
I added the bold type above, for emphasis.
After reading the entire _Finance Magnate_s article, you will probably be left scratching your head, asking “How is this going to affect my broker, and my account?” As suggested in the original post (above), this latest attack on the money-transfer pipeline between clients and brokers will not be fully implemented for almost six months, and it’s likely that nobody – including your broker – yet knows the answers to your questions.
Don’t waste your time trying to interpret the legalese being reported in articles such as the one quoted here. Instead, if you transact with your broker via credit card deposits and withdrawals, leave it to your broker to determine how to adjust to this new credit card paradigm.
Look for an announcement from your broker within the next few weeks, outlining their credit card policies going forward. If no announcement is forthcoming, contact your broker directly, and stay in touch with them, until your particular position is clarified.
First post as I have been following blog for sometime so as my way of
saying thanks, I just want to contribute. As far as Pax Forex, my advice is to stay away. I don’t know how they operate today but several years ago when I joined. I was making profits and they didnt like this. So they increased the spread in one of the currency pairs nzd/cad by 30 pips. And by the time I got into the trade, it was too late as I couldn’t believe my eyes. luckly, I only lost $100, but since then, I’ve ran far away. Just google paxforex scam and you will see others who got taken by them. They definitely are a market maker. I too was with capital city market. But since it now takes about a month to get ones money back, I’ve lost faith in offshore accounts that are not regulated. I’m with oanda now. Though the leverage sucks 1:50, one can still make a living if one knows what they are doing. Plus, I sleep better at night. Don’t have to worry whether I’m going to get my money back. I always believe in thinking long term and joining a broker that’s offshore whose not regulated to me is risky because at anytime, they can decide to pull the rug under you and who are going to complaint to? Please traders, do your due diligence. Until Dodd frank bill is repealed, I will keep my money at home and maybe put what I don’t mind loosing to these offshore brokers. Just my two cents. Thanks all for the wealth of knowledge with this blog.
I’ve been researching FinPro, and they’re not regulated by any entity so does anyone have any REAL experience with a LIVE account? If so, for how long?
Thanks
Scroll back to post #2 in this thread, where you will find LINKS to posts discussing FinPro, going all the way back to March 2016.
Thanks Clint, appreciate the response.
WHERE ARE THE NEW U.S. FRIENDLY FOREX BROKERS
I am concerned that we don’t seem to be finding new brokers of quality
who are U.S. friendly. What will it take for the portfolio of brokers to
be expanded ?
I am working primarily with TurnkeyForex and FinProTrading, which
are the highest performance, and best commission available, but
they are tied to the same service provider.
I’d like to see more Diversity in high quality choices, so where do
we find them ??
[EDIT] Yadix ?
Let me toss this option into the mix:
https://www.yadix.com/about-us/why-trade-with-yadix/
Appears UK based, and promises lots of good things,
and includes United States as one of the countries.
BEYOND THAT, I have not researched anything.
So, it could be something to be added to our portfolio??
There may be some show-stopper, but on a cursory
inspection I did not see anything…
[EDIT2] I do notice their commish is a bit higher than
I would like to pay but often things are negotiable. I have
been buried under coding a couple of BOTs which are
commission, spread and latency sensitive so I really
have not been out scrounging up new brokerage
candidates.
hyperscalper
at the bottom of yadix home homepage it state " yadix does not provide services for citizens of the united states"
I did access their site from my Amsterdam hosted system,
so it did not geolocate me to the United States. However,
in their list of Countries, they clearly do include the United States.
If you access from a U.S. geo-located IP address, perhaps
you get a message or a different list ??
If they will not accept U.S. persons (even unsolicited) then
that settles it.
Thanks.
hyperscalper
You are correct, Paul. – However …
Nope. Same list.
United States is clearly offered in the Yadix “country” drop-down menu.
I didn’t go through the precedure of filling out their application form, but it’s worth a try by anyone who’s interested in this broker.
As we’ve pointed out from time to time in the past, there are brokers who protect themselves legally by posting disclaimers such as the one SmallPaul mentioned, while letting qualified U.S. clients quietly register. No doubt, if one of those U.S. clients ever became an “issue” with the FCA or CFTC, the broker would simply say,
“Gee, I have no idea how that client slipped through the net. We don’t accept U.S. clients.”
It’s a game we can play.
your correct, when i get the time i will go thru the application process, maybe tomorrow
ok could not find no information at forexpeacearmy but i see there parent company is register in the belize, the company name is quantix finacial service
https://www.ifsc.gov.bz/licensed-service-providers/list-f/
you can see there registration under Quantix Financial Services Ltd. they list yadix as there website address
UNSOLICITED MAY BE THE KEY
Websites would be considered “solicitation” so it is
not surprising that a broker would not advertise acceptance
of a U.S. person. However, an “unsolicited” contact and
application could be accepted by the broker quietly
as suggested above.
[EDIT added allegedly… :)]
I may have mentioned a client of mine [allegedly] has an account
with [undisclosed broker] in Australia, as a U.S. person, but
the account size was $200k or so… So “money
talks”, and a discussion with a broker could result
in acceptance “under the radar”…
[EDIT2] I AM SICK AND TIRED OF THE SUGGESTION
WE NEED TO “SNEAK AROUND” TO BROKERS WHEN
IT SHOULD BE PERFECTLY LEGAL !!! END OF RANT !!.
hyperscalper
IC MARKETS NOTICE ON WEBSITE THAT U.S. PERSONS NOT ACCEPTED
I began an application for a Live account on ICMarkets.com and
a brief notice flashed up (then disappeared) that they will not
accept U.S. clients, despite “United States” being in the list. Using
Windows Zoomit utility, I was able to capture the message which is this:
You are allowed to proceed further with the application form and will
presumably be contacted… This allows the broker to “qualify” the applicant
and come to a decision…
Actually a client of mine does have such an account. For purposes of this
forum, let’s say he is a “citizen of the world”. LOL. I’ll gather some more
info on the broker, and may get a chance to do a technical evaluation
of their major Forex offerings using my platform and MetaTrader 4.
[EDIT] A QEP is technically the status you would need to bypass the CFTC
restrictions, but I believe certain terms may be “negotiable”. The client
I refer to does have substantial assets, but I’m not sure s/he meets
QEP status.
[EDIT2] Note the language states “U.S. residents” … Certainly if I
resided in Canada and was a U.S. person, the issue would continue
to arise… But we shouldn’t have to leave our beloved country to trade !!!
[EDIT3] I note they use backend liquidity services in New York,
and having some component
of their firm inside the U.S. perhaps that is where the liability arises that
revenues may be impounded by the “Feds” should there be any issues…
[EDIT4] Last edit, I promise. So a QEP (Qualified Eligible Participant?)
is someone who can demonstrate “aggregate assets” of $5 million
and perhaps the client could do that, due to his business as a private
investor holding various startup companies… Again, I protest that such
a loophole should be the only way for us to do business with these
offshore brokers of high quality ! “He doth protest !!..” LOL SAD really…
hyperscalper
TURNKEYFOREX.COM VOTE FOR TRUSTED BROKER STATUS
I’d like to up-vote TurnkeyForex.com to “Trusted Broker” status,
inasmuch as it shares the same infrastructure as FinProTrading.com
and may even have more responsive customer support…
My votes are restricted to Forex trading only on the major 28 pairs…
I don’t use any other brokerage offerings…
hyperscalper
EVOLVE.MARKETS HAS UPGRADED TO MT5
I guess for new accounts, Evolve has updated to MT5. I have
an old MT4 account and a new MT5 account. I’ll just post what
they say the new features are. This includes not only native BTC
(BIT) accounts, but now LiteCoin native funded accounts:
It’s a bit confusing as there are separate “private office” areas
for management of the MT4 versus the MT5 accounts, but they are
certainly pushing the envelope…
In my case, these upgrades to MT5 pose potential complications, since
I use the NJ4X.com API framework, which does support the mixing
of both MT4 and MT5 server types… I guess we can’t stop Progress !! LOL
hyperscalper
