One look at the Instaforex EU and Instaforex websites, and you are sure to be impressed by the impressive display of admirable brand ambassadors, professional websites, and presentation of awards.
But can you trust these brokers with your money? We will see in this candid Instaforex EU and Instaforex review.
We will look deeply at their regulation and assess the red flags. We will check whether the statement ‘top choice of more than 7,000,000 traders’ proudly displayed on the websites is genuine.
If you have already lost money, we can help you recover it. Schedule a free consultation with us.
Instaforex Review: An Overview
Both Instaforex and Instaforex EU were launched in 2007. They deal in the trading of CFDs, currency pairs, stocks, metals, indices, cryptocurrencies, and commodities. They provide mobile trading apps and MetaTrader 4 trading platforms.
The brokers offer a demo account for beginners. Experienced traders can choose from various accounts that differ in terms of their accounting spreads and commissions.
Instaforex EU provides five trading accounts. They have no limit to the maximum amount you can deposit:
- ECN Pro
All of Instaforex’s trading account options require a minimum deposit of $1.
Is Instaforex EU Regulated?
Instaforex EU operates under Instant Trading EU Limited, which is based in Cyprus and regulated under license number 266/15 by the Cyprus Securities and Exchange Commission.
But regulation by CySEC is not a guarantee that you will not lose your money unfairly to the broker, as we will see in this detailed Instaforex EU and Instaforex review.
There is proof that the broker is not keen on sticking by CySEC’s rules.
In a board decision reached on June 2018, Instant Trading EU Limited was fined €130.000 by CySEC for non-compliance and failing to act in accordance with its clients’ best interests.
A Look at Instaforex Regulation
Instaforex operates under Instant Trading Limited located in the British Virgin Islands under License number SIBA/L/14/1082. Both Insta Service Limited and Insta Global Ltd are registered in Saint Vincent under Registration number IBC22945 and IBC24321, respectively.
Can You Trust the Instaforex Regulation?
As shown in the BVI FSC website, Instant Trading Limited is authorized to:
- Arrange deals in investments
- To deal as a Principal
- Deal as an agent
- To take custody of non-mutual funds
It would help if you always exercise caution when dealing with brokers registered in an offshore jurisdiction.
Offshore regulators, such as BVI FSC, are attractive to scam forex brokers due to the ease of acquiring a license and the low minimum capital required to set up a business. There are also loose rules regarding maintaining a separate account for customer deposits. For this reason, trading with a BVI-FSC registered broker puts your money at risk.
Let’s illustrate the loose rules by offshore regulators.
Reputable regulators require brokers to disclose to their clients, the risk involved in trading CFDs. Instaforex EU, which is regulated by a solid body, discloses this at the bottom of the page.
But there is no risk warning on the Instaforex website.
The Saint Vincent registration is not a green light to operate with the broker, either.
In its website, St Vincent and the Grenadines Financial services authority distances itself from forex trading and cryptocurrency offerings. It clearly states that there is no regulation in place for such practices and cautions members of the public to be careful when engaging in forex and cryptocurrency trading activities.
Here is a screenshot of the warning.
Due to the lack of proper regulation, Instaforex has been blacklisted from operating in several countries.
The Ontario Securities Commission issued a warning against Instaforex for engaging in business in Ontario without proper authorization.
The Brazilian Comissão de Valores Mobiliários has also banned Instaforex from operating in Brazil.
And the Bulgarian Financial Supervision Commission has blacklisted Instaforex from offering services in the Republic of Bulgaria.
A Major Instaforex Red Flag
Instaforex is known for its contests that come with attractive prizes. And this is one of the traps that scam brokers use to attract clients.
For instance, Instaforex has a campaign that has been running from 2019 and will continue until 2022. All a trader needs to do is register for the campaign and top up their account with $1,000, and they get a chance to win a Ferrari F8 Tributo.
A legitimate broker does not need to attract customers with the promise of luxury gifts. Given that Instaforex is not well regulated, this is a tactic aimed at enticing more people to ignore the risk involved in trading with an unregulated broker and get them to invest their money.
The long duration of the campaign further confirms our suspicion. The longer it is, the more money people will invest, with the hope of one day winning the Ferrari.
Instaforex also provides a variety of bonuses to encourage more signups.
What the Market has to Say about Instaforex and Instaforex EU
Customers have claimed that Instaforex does not pay its profits as seen on these two reviews on Forex Peace Army.
These two customers had problems withdrawing their money from Instaforex, as seen from their reviews on Trustpilot.
Both Forex Peace Army and Trustpilot are trusted review websites.
The genuine customer testimonies are enough to conclude this Instaforex EU and Instaforex review.
They cement CySEC’s judgment that Instaforex EU does not operate with their customers’ interests at heart. They also prove that the lack of proper regulation by Instaforex is aimed at making it easier to defraud customers of their money.
Instaforex EU and Instaforex Review Conclusion: The Final Verdict
Just because a broker is collaborating with major companies or has proper regulation does not mean it can be trusted. Watch out for the red flags.
Instaforex and Instaforex EU are focused on making as much money as they can from their customers using unethical means. While Instaforex EU uses its regulation as a way to warm its way into peoples’ pockets, Instaforex uses gifts and luxury rewards as bait to get people to invest their money without considering its lack of regulation.
If you have fallen victim to these tricks, we can help you recover your money. Before investing your money with a broker, always carry out proper due diligence. And if something seems out of place, consult with reliable wealth recovery experts first.