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PCFX Review - is it scam or safe?

PCFX Review - Is pcapitalforex.com scam or good forex broker?

RATING: 1.3 / 1 REVIEWS ForexBrokerz PCFX
PCFX is an offshore broker. Your money is not safe.

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Power Capital Forex (PCFX) is a London based unregulated forex and CFD broker that focuses mainly on the Chinese and South East Asia market, but also tries to attract customers form the United States. If you are considering opening an account with them be sure to read this review first.

 

Account type Min. deposit Max. leverage Spreads
Live Account $1000 1:100 1,9 pips, flexible

 

Power Capital Forex Advantages:

 

MetaTrader4 available

 

With Power Capital Forex you can download a PC or a mobile version of MetaTrader4 – the most widely used trading platform for the past decade and this is possibly the only positive side with this broker. MT4 is favored by traders as it offers the algorithmic trading option, where one can write his own trading scripts and robots on a proprietary programming language. In addition there are excellent charting tools to analyse the markets with. Here you can check our list of brokers, offering MetaTrader4:

 

>>Find other MT4 brokers here<<

 

Power Capital Forex Disadvantages:

 

Lack of regulation

 

Power Capital Forex is an unregulated London based forex broker, which says is a part of the Power Capital Group. The broker claims credibility by the fact that another company, part of the Goup – the Power Capital Global Ltd is listed on the London Stock Exchange. After checking the registers however it turned out the Power Capital Global Ltd was delisted in 2015.

 

 

We should note also that Power Capital Forex is offering its services only for specific countries - China, Macao, Hong Kong, Singapore, Thailand, Australia, Canada, Central African Republic, Malaysia, Philippines, United Kingdom, India, Indonesia, Japan, Korea, Laos, South Africa, United States, Vietnam and the Cayman Islands. 

 

The intriguing aspect here is that the broker is trying to find clients in the United States, while the current American legislation allows only companies licensed by the Commodity Futures Trading Commission (CFTC) and members of the National Futures Association (NFA) to provide such services to American citizens. Power Capital Forex is not a member of the NFA and actually is not regulated anywhere. 

 

Needless to say that the lack of license by a respected financial authority lowers the reputation of any company offering forex and CFD trade services.

 

The most popular destinations for the forex and CFD brokers in recent years have become Australia, the UK and Cyprus, where the balanced regulatory regimes provide both security for investors and flexibility to the companies.

 

CySEC in Cyprus, the Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investment Commission (ASIC) oblige all forex brokers under their jurisdiction to follow strict financial and ethical rules, including the obligation to keep all clients funds in a segregated account and to maintain a minimum capital adequacy ratio. 

 

FCA and CySEC even force their brokers to participate in client compensation schemes, where investors can receive part of their trading capital back in case the broker goes insolvent. In the case of CySEC the compensation can be up to 20 000 EUR, while with FCA it can reach 50 000 GBP. Here you can check our list of FCA regulated brokers:

 

>>Find FCA regulated Brokers here<<

 

Just one trading account offered

 

Power Capital Forex offers its clients just one trading account with a minimum trading volume of 0,1 lot or 10 000 base currency units. Many brokers however offer the option for a Micro Account, where the minimum trading order is just 0,01 lot or a 1000 base currency units, which is more convenient for certain trading strategies. Here you can check our list of brokers, offering a Micro Account to their clients: 

 

>>Micro Account Forex Brokers<<

 

 

 

Excessive minimum deposit amount

 

The minimum deposit to open an account with Power Capital Forex is 1000 USD and that is clearly excessive as with most brokers you can open an account with a 100 USD or less and there are big players such as XM and FXTM where the minimum deposit is just 5 USD.

 

Few trade instruments

 

Power Capital Forex offers trade with 30 forex pairs, including exotic currencies like the Chinese Yuan and the Hong Kong dollar. CFDs on gold, silver and oil are also available. Most brokers however offer much wider spectrum of trading tools, including CFDs on indices and commodities as well as crypto currencies. Here you can check our list of brokers, offering CFDs on bitcoin and other crypto currencies:

 

 >>Bitcoin Forex Brokers<<

 

High spreads

 

When tasted with a Demo account the EURUSD spread reached 1,9 – 2 pips, which is clearly above the market average although no commission for the trade was taken. For a standard account traders usually expect to see spreads starting around 1 pip and certainly below 1,5 pips. Here you can check our list with brokers, offering tighter spreads:

 

>> Lowest spread forex brokers<<

 

Major e-wallets not available as payment method

 

Clients can deposit or withdraw money with Power Capital Forex via the major credit cards, bank transfer or the MoneySwap e-wallet. Other popular e-wallets however are missing, including Skrill, Neteller and PayPal. Here you can check our list of brokers offering Skrill as a payment method:

 

>>Skrill Forex brokers<<

 

Conservative Leverage

 

The maximum leverage offered by Power Capital Forex is 1:100, which is a bit conservative as with many brokers it is a couple of times higher. Here you can check our list of brokers offering leverage of up to 1:500 and above, having in mind that higher leverage means higher risk.

 

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

 

Conclusion:

 

Power Capital Forex is an unregulated forex and CFD broker and by definition the lack of a license in the industry means lack of credibility. In addition the excessive 1000 USD needed for opening an  account makes the broker even less attractive. 

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Traders` reviews for PCFX

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