Parantoux Trading – Can You Trust Them?

Website URL: https://www.parantouxtrading.com

Founded: N/A

Regulations: No License

Languages: English

Deposit Methods: N/A

Minimum Deposit: £500

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Foreign currencies

Trading Accounts and Conditions

Parantoux Trading offers its clients 6 different types of managed trading accounts:

• Trial: The minimum deposit you are required to make to use this type of account is £500.
• Bronze: To use the Bronze account, you need to make a minimum deposit of £5,000.
• Silver: For the Silver account, the minimum deposit requirement is £20,000.
• Gold: To start trading on the Gold account, you need to first deposit at least £50,000.
• Platinum: To use the Platinum account, you need to make a deposit of a minimum of £100,000.
• Diamond: You need to make a minimum deposit of £250,000 to use the Diamond account.

There is no mention of the leverage ratios or spreads offered by this broker.

Parantoux Trading – Advantages

Despite going through Parantoux Trading’s complete set of offerings, we could not see any benefits to contracting with them, which is why we have left this section of our review blank.

Parantoux Trading – Disadvantages

Here are the disadvantages of doing business with Parantoux Trading:

• Anonymous Broker

Despite the fact that Parantoux Trading claims to have offices in major cities such as Hong Kong, New York, Singapore as well as Gibraltar, this broker has provided no corporate information on its website.

We do not know the name of company that owns and operates this broker, and neither do we have a physical address. This means that this broker is operating anonymously, which is very dangerous for traders, since you will not know where your funds are going, or who is handling your funds.

Plus500

$100

Minimum Deposit

Start Trading

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82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

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The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Unlicensed Broker

Without any corporate information about Panratoux Trading, we can safely assume that this broker is unregulated. Had this broker been regulated, they would have mentioned their registration and license number on its website.

Dealing with an unregulated broker is asking for trouble. Such brokers operate outside the law, which means that if you were to get scammed, you would not be afforded any protection against losses.

Regulated brokers are required by law to ensure that their clientele is protected against losses due to bankruptcy and fraud. In fact, there are many regulators today that insist that broker’s customers be offered insurance against such losses.

• Warning Issued Against Broker by FCA in the UK

While investigating Parantoux Trading, we found that the financial regulator in the UK, the Financial Conduct Authority is currently carrying out an investigation against this broker.

The watchdog has warning traders that this broker is offering its services illegally. The FCA also states that brokers that knowing operate outside the law are usually scammers.

• Only Offers Managed Accounts

Parantoux Trading only offers its clients managed accounts, which is a huge red flag for us. This is because most brokers – regulated or otherwise – are what is known as market makers. What this means is that they make money when traders using their platforms lose money on trading.

So, if a market maker offers to manage your accounts for you, that is, trade on your behalf, then it is called a conflict of interest. This is because the broker can manipulate your account so that you only lose your investments, since they stand to gain when this happens.

• Initial Deposit is High

The initial deposit requirement to be able to trade on Parantoux Trading’s platform is £500, which is more than 2 times the market average. Most brokers require you to deposit between $100 and $250 initially.

• Forced to Convert Accounts

Another big negative about this broker is that if you open a Trial account, you can only use it for 30 days. After that, you have to convert your account to a Bronze, Silver, Gold, Platinum, Diamond or VIP managed account.

This means that you are forced to deposit at least £5,000 more if you wish to continue trading with Parantoux Trading.

• No Support for MetaTrader 4

Parantoux Trading claims to use the Takion and Sterling Trader Pro as its trading platform. These are supposed to be professional trading software, but since there is no demo account available, we were unable to test them.

On the whole, the most popular trading platform, for novices and professionals, is the MetaTrader 4 software. This is because this is a platform that offers its users many unique addons, such as allowing traders to create as well as back test their own trading bots – over and above the ones that are offered by the software.

You also get a range of advanced analytics tools, signals, charts and indicators to help you with your trades. So, the fact that this broker does not offer support for the MT4 platform is viewed by us as a negative.

• Unfair Withdrawal Conditions

Over and above everything else, this broker states in its withdrawal conditions that you may not withdraw your own funds for the first 90 days after opening an account with them.

No legitimate broker will prevent you from withdrawing funds from your own account.

Conclusion 

Parantoux Trading is not a broker that you should trust; everything we have investigated about this broker proves that it is just another scammer that is out to cheat you of your money.

Not only is it anonymous, it also has a regulatory warning from the FCA against it. Furthermore, its offerings are clearly a conflict of interest and it has some extremely unfair terms and conditions.

We would recommend that you find another broker, one that is regulated, fair and transparent in its dealings with its customers.

Parantoux Trading

2.6

User Experience

3.2/10

Payment Options

2.4/10

Security

2.5/10

Support

2.3/10

Reputation

2.6/10

Pros

• No Benefits

Cons

• Anonymous Broker
• Unlicensed Broker
• Warning Issued Against Broker by FCA in the UK
• Only Offers Managed Accounts
• Initial Deposit High