ROInvesting Review (2021): Is This CFD Broker a Scam?
Is ROInvesting a legit broker? How trustworthy is this trading platform? It claims to be a leader in CFD trading but are your funds safe with them? To answer these questions and more, read this in-depth ROInvesting review.
Have you lost money investing with ROInvesting? If yes, book a free consultation with us today. Our experienced team of experts will guide you on how to recover your lost funds.
Here’s all you need to know about ROInvesting.
An Honest ROInvesting Review
Established in 2017, ROInvesting is an online trading platform that specializes in CFD currency pairs, commodities, stocks, and cryptocurrency.
From its website, the CySEC-regulated broker displays several awards that the company has won as a CFD broker.
In 2019, Italian football club AC Milan announced its partnership with ROInvesting. This deal made the broker Milan’s official CFD partner until June 30, 2021. In August 2021, the two announced a partnership extension for another consecutive football season.
While these moves make the company look legit, how true is this? Are there loopholes that investors should know?
Is ROInvesting legit?
To trade in the forex market, you need to know how to identify legitimate traders and scams to avoid losing your money. At a glance, most brokers that turn out to be scams have well-detailed websites with all the right information to attract investors.
To know the truth about ROInvesting, we will look at whether the company is regulated, which agencies regulate it, and its operations. With this information, we can come up with a final verdict about its legitimacy.
An Overview of ROInvesting
ROInvesting is a CFD broker based in Cyprus. Operating under the brand name Royal Forex Limited, the broker is regulated and authorized by the Cyprus Securities and Exchange Commission (CySEC). Investors can trade in over 10,000 global markets.
It deals in over 350 assets, including forex, shares, commodities, indices, cryptocurrencies, metals, and ETFs.
Is ROInvesting regulated?
Under the brand name Royal Forex Ltd, ROInvesting is regulated by the Cyprus Securities And Exchange Commission (CySEC) on the license number 269/15. As a CySEC licensed broker, it can provide brokerage accounts to residents in the European Union.
Additionally, this license is supposed to guarantee the safety of customer deposits and data privacy. ROInvesting is also licensed by the Markets in Financial Instruments Directive (MiFID).
According to its website, the company is also registered with EU and local regulatory authorities including,
- Financial Supervisory Authority
- Federal Financial Supervisory Authority (BaFin)
- Financial Services and Markets Authority.
- Sweden’s Financial Supervisory Authority
- Czech National Bank
Is ROInvesting regulated in the UK?
This company has registered with the regulatory body in the UK, The Financial Conduct Authority (FCA). However, according to the FCA website, it only has temporary permission.
With this temporary permission, the FCA limits ROInvesting activities, and it must not carry out any regulated activities or market products to UK residents.
This warning from the FCA definitely raises some questions about the legitimacy of ROInvesting as a trading partner.
Is ROInvesting regulated in the U.S.?
There’s no evidence that the firm is licensed to operate in the U.S. or provide services to the citizens.
Is ROInvesting a scam?
Before investing your hard-earned cash, you need to know whether this firm is a scam. The company has some features that make the company appear legit; here are some of them.
ROInvesting is registered under CySEC to legitimize its operations. CySEC is one of the better regulators out there.
Traders who sign up to ROInvesting can trade using webtrader, mobile apps, and MetaTrader 4 (MT4). These platforms are most commonly used; therefore, any veteran trader will be familiar with the structure. In fact, MT4 s the world’s most used platform.
For new traders, ROInvesting has crafted education materials and a learning center to help beginners navigate through trades. Veterans can also use this to enhance their knowledge.
Users can use services such as PayPal to deposit money here.
The AC Milan Partnership
ROInvesting is partnering with AC Milan for the consecutive third football season. This CFD trading partnership is probably the most appealing factor about this firm.
While all these elements appear legit, what are the red flags?
ROInvesting Scam Signals
The CySEC Fine
In 2020, ROInvesting under the parent company Royal Forex settled with CySEC and paid a fine of €270,000.
CySEC fined the firm after assessing its compliance with the set regulations from January 2018 until December 2019.
This raises the question of whether the firm has been completely open about its operations.
Temporary Permission From FCA
Although the firm claims that it’s registered with UK’s regulatory authority, the FCA, the agency has indicated on its website that ROInvesting has temporary permission.
This restricts ROInvesting from carrying out activities in the UK.
If you check the reputable reviews platform, Trustpilot, there are some customer complaints about the customer care staff being too aggressive and calling too much.
Additionally, Trustpilot has issued a disclaimer. It has detected some fake reviews about ROInvesting. Although Trustpilot removed them, it still points to illegitimacy and unethical issues.
The Name Change
Previously known as GMO Trading, ROInvesting probably changed the name to avoid the negative reputation. GMO Trading had tons of customer complaints about losing money, not being able to withdraw funds, and non-stop calls from the customer care team.
ROInvesting Review: The Final Verdict
While ROInvesting appears like a legit CFD trading company due to the AC Milan partnership, there are some red flags that you shouldn’t ignore.
CySEC regulates the firm; however, it still has some issues with the FCA. Additionally, its past problems with CySEC also raise questions about its business operations legitimacy.
Furthermore, some customer complaints make the firm look bad. Therefore, you’ll need to be cautious when trading with this company.
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