InstaForex Review (2022): Make No Mistake, This Is a Scammy Broker
What is a scammy broker? How can you tell whether your broker is genuine or a scam masquerading as the real thing? If you a new investor looking to start online trading, you have come to the right place.
One primary way of identifying rogue brokers is by reading unbiased broker reviews like this one. By understanding how online scammers operate, you can protect yourself and your money from falling for their schemes. Keep it here to learn all you can about InstaForex.
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Unraveling The InstaForex Scam
1. Bulgaria’s FSC Warns Against InstaForex
In February 2016, Bulgaria’s Financial Supervision Commission, FSC, issued warnings against 18 brokerages. According to the report from SMNWeekly, featured prominently in the list of shame was InstaForex, a Russian company.
The regulator noted that the entities were offering unauthorized brokerage services in binary options, forex, and other trading assets. Though registered in Bulgaria, they had no license to operate in the country.
The FSC issued the warnings to protect investors from potential losses. Any investors who invested with the blacklisted brokers would be risking their money. While the Investor Compensation Fund compensates investors to the tune of €20,000 in case of broker defaults, it only does so for clients of licensed Bulgarian-registered companies.
2. The Brazilian CVM issues an alert against InstaForex (August 2016)
Hot on the heels of the above warnings followed a security alert from Brazil’s Comissão de Valores Mobiliário, CVM. The CVM declared that InstaForex Group had no authorization to attract the country’s residents to trade in the Forex market.
The CVM proceeded to institute an immediate suspension of any direct or indirect public offering of forex investment opportunities on the company’s website or Facebook page.
3. CySEC Imposes a Fine of €130,000 on InstaForex Parent Firm (2018)
Not long after the FSC’s warnings, CYSEC, the Cypriot regulator, fined Instant Trading EU Ltd, a CySEC regulated broker and the mother company to InstaForex €130,000 for inappropriate client-related practices.
Announcing the news on its official website, CySEC stated that the company operated many other retail forex brands. It warned the general public against trading with the company or its affiliates.
The financial regulator accused Instant Trading EU Ltd of:
- Failing to act professionally, fairly, honestly, and in the clients’ best interests.
- Failing to assess whether its clients had the knowledge and experience to decide whether the broker’s services were appropriate for them.
In the light of the above revelations, we can already form an idea of the kind of broker InstaForex really is. But let’s dig a little deeper to learn more.
InstaForex Company Profile
From its impressive website, we learn that the InstaForex brand is the trademark of InstaFintech Group. It was established in 2007.
Instant Trading Ltd (BVI), Insta Service Ltd, and Insta Global Ltd are associate companies, all trading under the InstaForex brand. The latter two are registered in Saint Vincent.
InstaForex is a forex broker with headquaters in Cyprus but operating in 80+ countries. The firm provides access to over 100 forex currencies and 200 CFDs, including stocks, futures, cryptocurrencies, and gold.
Its key strengths are the expansive service range, competitive trading conditions, and vast client base. In addition, the firm:
- Has won many industry awards for high-quality work.
- Provides innovative trading tools.
- Offers several deposit and withdrawal options.
InstaForex Accounts and Trading Platforms
InstaForex offers both MetaTrader 4 and 5 trading platforms, as well as their android and mobile versions. There are 4 different trading accounts, mainly differentiated by their commissions and accounting spreads as shown below:
Other features and benefits include:
- A demo account
- Forex TV, forex charts, and up-to-date analysis.
- Multilingual customer support.
- Education categories tailored for beginners
- Partner and affiliate programs.
Who Regulates InstaForex?
InstaForex operates under Instant Trading Ltd., which boasts authorization and licensing from the FSC, Financial Services Commission, in the British Virgin Islands (BVI). Its license number is SIBA/L/14/1082. As mentioned earlier, the affiliate companies are registered in Saint Vincent while Instant Trading EU Ltd is licensed by CySEC.
Now, offshore regulation and licensing is not as strict as that offered by top international regulators like CySEC or the FCA in the UK. Also, the regions attract scam brokers because of the lax regulations, minimal requirements to set up office, and ease of acquiring a license.Simply put, trading with offshore registered brokers puts your investment at risk.
InstaForex: The Red Flags
The regulator warnings discussed at the beginning of the review are enough to make any wise investor distance themselves from InstaForex. But there’s more.
1. Contests With Lavish Prizes
InstaForex lures in investors with contests and raffles with incredible prizes like the ongoing campaign that promises a Ferrari to the winner. The catch is you need to register and fund your account with $1,000.The campaign has been going on for years showing that the real motive here is to get as many traders to register as possible.
Also, the broker sponsors major sports teams, with some champions acting as its brand ambassadors. This could be yet another ploy to attract investors.
2. Deposit Bonuses
The broker promises bonuses of between 33-100% to customers, while those who deposit a minimum of $1,000 get to participate in raffles and win amazing prizes. This is clearly a gimmick to get as many people as possible to invest.
3. What Do InstaForex Customers Have to Say?
Forex Peace Army’s customer reviews on InstaForex start with the disclaimer that the broker is a scam. It goes on to warn against depositing funds with the broker and cites 6 regulatory warnings against InstaForex.
Below are screenshots depicting customer sentiments from Forex Peace Army and Trustpilot, both reputable review websites:
InstaForex Review Conclusion
There is no doubt about it; InstaForex is a scam.
The regulator warnings and customer reviews highlighted above paint a grim picture of a company that operates with impunity. As a smart investor, whenever you hear of ominous terms like “blacklisted” or “unauthorized entity” mentioned in relation to a prospective broker, keep off.
Are you a victim of InstaForex? Book a free appointment with us and let us help you get your money back.