InstaForex Review: Are Traders Risking Their Security?
Online CFD and forex broker InstaForex is a Cyprus Investment firm with a license from CySEC, the financial regulator of Cyprus. Their parent company is Instant Trading EU Ltd. Despite still having their license, the broker has faced fines from their financial regulators in the past.
Opening an InstaForex Account
Seeing that most brokers have minimum deposits of around $250, like CTX Prime, the InstaForex deposit of just $1 is surprisingly low. This might seem like a good deal, but low entry requirements are often a sign that brokers are specifically aiming for traders who don’t know what they’re doing. Traders interested in an InstaForex account can choose between fixed spread accounts or accounts based on commission.
Substantial Fine Levied Against InstaForex
InstaForex has had some trouble with CySEC before, paying €130,000 in fines overall. The fines came in June 2018. The broker had to pay €90,000 for not acting fairly, honestly, and professionally. This blanket term is widely used by CySEC when issuing fines. Another €40,000 was for lack of proper client vetting and allowing inexperienced traders to access complex assets at risky leverage.
Trading With InstaForex
InstaForex has a satisfactory selection of CFDs and forex assets. Although this may be true, all of their financial instruments are offered with spreads that are much too high. The EUR/USD pair is at 3 pips, well outside the competitive range. The broker also has accounts with zero spreads and commissions instead. The overall cost of trading is about the same for both options, leaving traders without any viable options when it comes to trading with InstaForex.
Don’t Rely on Deposit Bonuses
This broker has deposit bonuses, which isn’t a good sign. In the event that a trader does receive a deposit bonus, they probably won’t ever be able to withdraw that money. The broker has terms that make it almost impossible to access bonus funds. A trader has to trade the funds many times over, by which point novice investors would have lost it all.
You Don’t Have to Struggle Alone
There’s little reason to believe that brokers will change in the long run. If a broker already has fines for misconduct from their financial regulator, most investors know enough to stay away. However, many invest before they could have known. When this happens, they could require outside help to recover their funds. Under those circumstances, you can contact us today to start recovering your funds immediately.