PFD NZ Review
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.
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.
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.
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.
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.
PFD NZ Review Conclusion
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