Forex

PFD-NZ.com Pacific Financial Derivatives Review

PFD-NZ.com zero spread forex broker | Kiwi trader review
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Trading Accounts

Account Type Minimum Deposit Maximum Leverage Spread
PFDTrader $0 1:300* Average of 0.8 pips
PFDPro $0 1:000 Average of 0.5 pips + $1 commission

 *1:300 is available only to accounts with less than $5,000 in equity. For bigger accounts the level is 1:100.

 

PFD-NZ, also known as Pacific Financial Derivatives is a New Zealand based STP/ECN forex broker. The company offers accounts, as described above, with one of the specific things about this broker being great spreads on pairs, which include the major South-East Asia currencies (JPY, AUD and NZD).

 

The Company. Security of Funds

 

Company Country Regulation
Pacific Financial Derivatives ltd. New Zealand FMA

 

As mentioned, and as their name suggests PFD-NZ operates out of New Zealand. The broker is also regulated by the local watchdog, the Financial Markets Authority (FMA). Overall, this is a reputable company, which has been in business since 1999. Your funds will be safe, if you decide to trade with this broker.

 

In the past, New Zealand used to attract shady forex brokers, as the local regulation was not exactly tight. This has changed significantly with time, as more and more complaints started arriving. Today, financial regulation is up to par with rest of the country's legal system, which is pretty stable. The FMA regularly monitors the activities of regulated companies and often warns against scammers, presenting themselves as being regulated. One of the initial hurdles in the registration process is the requirement to have at least $ 1 million in capital holdings. This severely limits the number of potentially dishonest companies who would apply and is a much higher bat than the similar levels in other jurisdiction. This is especially true, when compared to the levels in some off-shore zones, like Vanuatu, where you can start a forex broker with $2,000.

 

 PFD-NZ has received fairly mixed reviews by traders. While some of them feel suspiciously good, almost like a marketing campaign by the company itself, there are also negative ones.  They mostly focus on slippage and execution issues, so maybe this broker is not suitable for scalpers, despite the low spreads. That being said, the company is based in New Zealand and some of these reviews were from European customers, so server lag may be an issue. Keep in mind, the complaints were about fractions of pips and milliseconds in execution, so this should not impact most traders, at all.

 

Trading Conditions

 

Minimum Initial Deposit

There is no minimum deposit requirement at PFD-NZ. This practice is shared by other brokers, such as lG and is aimed towards attracting less sophisticated traders.

 

Experienced traders will tell you, sufficient capital is require for a trading plan to be fully implemented. This criteria should only be important if you are a newbie or just willing to test a company's service.

 

Average spreads & Commissions

PFD-NZ offers very competitive spreads. Both account types have EUR/USD spreads under 1 pip, with the rest of the pairs being fairly close by. As we mentioned this is especially noticeable in pairs containing the JPY, AUD and NZD. That being said, traders have reported slippage issues, so you should take the given numbers with a grain of salt. Whatever the case may be, they are still very competitive. If you want to check the spreads offered by some of the world's leading brokers, in real-time, you can do so here.

 

Leverage

PFD-NZ provides a maximum leverage of 1:300 to its STP clients, who have an account balance under $5,000. For the rest the level is capped at 1:100. Both of these offerings are more than sufficient for serious traders. On the other hand there are brokers who provide 1:500 or even higher leverage.

 

Please, do keep in mind, higher leverage is not always better for you as a trader. The only thing which it allows for is taking bigger positions with less capital to back them up. While this may seem tempting at first, you should beware the possibility of receiving a margin call, if your risk management is not proper. At that point you would be mistaking trading for gambling.

 

Trading Platforms

 
PFD-NZ provides only one trading platform -  MetaTrader4(MT4). Lots of positive things have been said about this platform. It is the preferred choice of many brokers, as it provides great charting capabilities,an astonishing environment for the development of custom tools (MQL) and mobile app versions for iOS and Android. One of our favorite advantages of MetaTrader is the overwhelming number of technical indicators and automated trading systems (Expert Advisors) which the so called "marketplace" has to offer. Most importantly, they are not broker dependent, so if you have a collection of such tools, you can easily move them to another MT4 broker.


 

A preview of  MetaTrader4, as offered by PFD-NZ  (Click to zoom in)

  

The company used to provide a proprietary platform, called Kiwi Trader, but at the time of writing of this review, it is no longer supported. We do not know exactly why, but we suspect the costs of maintaining it outweigh the income it was generating, unlike MetaTrader4.

 

Methods of Payment

 

When it comes to payment methods, PFD-NZ offers several. The more traditional Bank Transfer and Credit/Debit Card are accompanied by e-wallets, such as Neteller, GiroPat and China Union Pay.

 

Conclusion

 

Pacific Financial Derivatives (or PFD-NZ) is a New Zealand based STP/ECN forex broker. The company is regulated by the FMA. Furthermore, the spreads they offer are very competitive with the best of the industry. That being said there were some trader complaints about slippage with this broker. Your experience may be based on your location, as this broker operates out of New Zealand, and ping can be an issue, from many places. Here is a list of this broker's strong and weak sides.

 

Pros Cons
FMA regulation Complaints about slippage
Low spreads  
MetaTrader4 platform  

 

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Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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Traders` reviews for PFD-NZ.com

Best Conditions

Here are my experiences with this broker.

I have been trading ~13 years. I have tried at least 70 live accounts. Most broker are just awful, others honest but their trading cost are simply too high.

PFD are fair, transparent and honest with some of the lowest spreads with no commission. Slippage does occur around news, but in general it is way less than all the other retail and many prime brokers.

Spread also comes back down extremely quickly after a news release, normally within a few seconds where as many brokers hold it for a few mins.

I actually now have a volume agreement with them as I moved some large systems over. I am allowed to introduce others if anyone is interested. You get the base spread minus 0.3 pips, this will give you spread on USD/JPY and EUR/USD around 0.2 pips with no commission whatsoever. It drops sometimes to negative 0.1 pips on occasion! I have spent years hunting and these are the best real conditions I negotiated anywhere. Note this is a true (no mark up discount) so take 0.3 pips off the demo spread to assess what you will get live. You get an instant credit into your account after each trade. This is a win-win situation you the absolute best conditions, and it helps me continue a good relationship with the broker to maintain these conditions when my systems have a quiet month.

Use this link to open a live account to get these conditions.

https://kiwi.pfd-nz.com/signup/logon?ID=64857

You should know all trading styles are allowed but they reserve the right to not discount scalping trades. It is my understanding that as long as you permit them to offset their risk they are happy. In reality 80% of my trades close within a min and at ~2 pips as I have a “break even” stop in my system. However, they are happy with this and don’t count this as scalping.

So all in all a good broker for some systems. If you have a solid system that needs the lowest trading conditions then they could be ideal for you.

Cheers,

Sim

sim_trader 05/16/2014

Review on PFD-NZ.com

I signed up with PFD recently and so far I don’t have a lot of impressions to share, but they have good leverage, low spreads and fast execution. I’ll update if there are any problems.

P. Carter 06/22/2012
Forex