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FxParamount Review - is it scam or safe?

FxParamount Review - Is fx-paramount.com scam or good forex broker?

RATING: 1.4 / 1 REVIEWS ForexBrokerz FxParamount
FxParamount is an offshore broker. Your money is not safe.

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FxParamount is based in Dubai forex and CFD broker that offers three different account types along with the MetatTrader4 platform. If you are thinking about opening an account with them be sure to read this review first.

 

Account type Min. deposit Max. leverage Spreads
Silver Account 100 1:400 1,8 pips, flexible
Gold Account 10 000 1:400 1,2 pips, flexible
Platinum Account 50 000 1:400 0,7 pips, flexible

 

FxParamount Advantages:

 

Various account types

 

FxParamount offers three different account types Silver, Gold and Platinum with a minimum order size of 0,1 lot for all of the accounts. The broker however specifies that 10 lots are 100,000 units of the base currency, where base currency is the currency qouted first in a currency pair ( e.g 10 lot of EURUSD = 100 000 EUR). And that might confuse some traders as it is generally accepted that 1 lot is 100 000 currency units. Having that in mind the minimum order size with FxParamount is 1000 currency units or 0,01 standard lots. All trading accounts are advertised as ECN accounts, but we were not able to verify this.

 

Acceptable spreads

 

The spreads are advertised to start from 1,8 pips for the Silver Account, from 1,2 pips for the Gold Account and form 0,7 pips for the Platinum Account. While 1,8 pips for a standard account is a bit higher then what traders are used to see, when tested with a demo account the EURUSD spread fluctuated between 1,3 and 1,5 pips without commission being taken, which is more or less in line with the market average. Still you may like to check our list of forex brokers offering even tighter spreads:

 

>> Lowest spread forex brokers<<

 

Good leverage

 

FxParamount offers leverage of up to 1:400 for the forex trade and a fixed leverage of 1:100 on commodities and financial indices CFDs. While higher leverege means higher risk, you may still want to check our list of FX brokers offering leverage of 1:500 and above:

 

>> Brokers offering at least 1:500 in leverage <<

 

MetaTrader4 available

 

With FxParamount  you can freely download the MetaTrader4 for Windows, Linux, Mac or Android. This is the most popular trading platform, featuring great charting and analytical tools to explore historical data and the option for automated, algorithmic trading via the Expert Adviser application where you can write and modify your own custom indicators. Here you can check our list of brokers, also offering the MT4 trading platform: 

 

>>Find other MT4 brokers here<<

 

FxParamount Disadvantages:

 

Lack of regulation

 

FxParamount is based in Dubai, United Arab Emirates, but is not regulated by the UAE Central Bank or any other respected financial authority and that lowers its credibility. 

 

The Central Bank of the United Arab Emirates grants license to brokerage firms dealing in currencies and commodities or intermediating in currency market transactions. In order to be licensed by the Bank, the broker should either be a UAE citizen in the case of natural persons or the national shareholding should not be less than 60% of total paid-up capital in the case of companies. The regulation also sets a minimum operational capital of between 1 and 3 million dirhams according to the scope of activities the intermediary intends to carry on. 

 

In recent years, after the legislators in the US and Japan imposed excessively tight requirements on the forex industry, most brokers choose to register and get their license from CySEC in Cyprus, the Financial Conduct Authority (FCA) in the UK or the Australian Securities and Investment Commission (ASIC) as the regulatory regimes there provide both security for investors and flexibility for the companies. 

 

CySEC, FCA and  ASIC brokers had to keep the money, invested by their clients, in a segregated account, protected form creditors in case the broker files for bankruptcy. The three regulators also have a requirement for minimum operational capital – 730 000 EUR for CySEC and FCA brokers and 1 000 000 for ASIC brokers.

 

Finally all brokers with CySEC and FCA licenses had to participate in client compensation schemes according which investors can receive part of their trading capital back in case the broker goes insolvent. Under the scheme clients of  CySEC brokers can receive up to 20 000 EUR, while clients of FCA brokers are entitled to a compensation of up to 50 000 GBP. Here you may check our list of FCA regulated brokers:

 

>>Find FCA regulated Brokers here<<

 

Just basic currency pairs offered

 

FxParamount offers trade with 26 currency pairs with the Mexican Peso the only exotic currency in the list. The only other trading instruments are CFDs for 8 major indices, crude oil, gold, silver and platinum. In comparison most brokers offer much wider range of trading options such as CFDs on stocks, commodities and cryptocurrencies.

 

Excessive minimum deposit requirements for the two premium accounts

 

While with FxParamount you can open a standard Silver Account with 100 USD, the 10 000 USD for a Gold Account and the 50 000 USD for the Platinum Account are a bit too much. We should note that with some big international brokers like FXTM and XM you can open an account with as little as 5 USD.

 

No swap-free Islamic account offered

 

FxParamount does not offer a swap-free or Islamic account, where investors can keep an open position overnight without paying interest. This is a clear disadvantage as the broker, operating from the heart of the Middle East, should have done more to attract Muslim investors. Under the Sharia law Muslims are not allowed to pay interest. Here you can check our list of brokers, offering swap-free Islamic accounts:

 

>>Islamic account brokers<<

 

No information on the payment methods

 

FxParamount  provides no information about the payment methods on its website. Most brokers accept credit cards, bank wire transfers as well as payments through e-wallets, such as PayPall, Skrill and Neteller.

 

Support provided only in English

 

Another disadvantage is that the website is supported only in English and that might further discourage investors form the Middle East.

 

Conclusion:

 

While providing three different trading accounts with relatively competitive spreads on the MetaTrader4 platform, we should keep in mind that FxParamount is an unregulated broker and that significantly lowers its credibility. Further more the minimum deposit requirements for the two premium accounts, that offer the good spreads, are excessively high. 

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Traders` reviews for FxParamount

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