Do you suspect fraud? Please share your experience. According to its website, the relatively new company has been in business since , and it also claims that new traders open accounts with them every day. The InstaForex website consists of a comprehensive site with a wide variety of features for a forex broker and gives a quite impressive initial visual appearance.
The website has extensive pull down menus for all types of forex participants from beginners to seasoned traders, and it has an area for Partners where you can register as a referral partner with the company. The website gives the overall impression of a foreign, yet professional, forex brokerage that provides many incentives for new traders to join up.
One such incentive is the opportunity to win a Lotus Elise sports car and a cash bonus when opening a new account. Despite its attractive visual appearance, the English text on the InstaForex website is clearly non-native with glaring grammatical errors.
For example, this is one of the first lines that gets your attention from the website:. While this language flaw will admittedly not be likely to affect your forex trading much, it is a forex fraud red flag for the company. Basically, if the company can afford to pay for a fancy website, the least they can do is have the text presented on it written in proper English. Basically, the website does not give any overt indications of impropriety, although several items stand out. For example, raffling a fancy sports car does not seem to be necessary if you provide clients with an excellent forex broking service.
Also, if the company claims to be getting new accounts a day, this begs the question as to why they would need to raffle off a sports car to attract new clients. The company also states that it is a part of the InstaTrade Investment Company. With respect to regulation, the company maintains that it holds licenses in Brokerage, Dealing and Capital Management Services from the Russian Federation where it is regulated by the Russian Federation Federal Financial Markets Service. The website also lists four long numbers corresponding to their licenses.
According to the InstaForex website, the broker has garnered a number of awards for best broker. In addition, many people complained online of constantly getting re-quotes, especially when the market was active.
Having the broker need to re-quote the market repeatedly when the market is moving is a recipe for disaster when trading forex and it usually costs traders money since the broker will generally fill an order if the market goes against the trader. Basically, having all the nice bells and whistles on a forex trading platform will do a trader no good if the underlying pricing service that the broker provides is fundamentally deficient.
Many online posters say they either did not receive this bonus or they claim that it was used in a scam by the company. InstaForex would accuse the trader of obtaining the bonus fraudulently, thus justifying InstaForex in rescinding the bonus and keeping all of the profits the trader had made with the money. Unless you have a burning desire to get into hassles with your money, or are a glutton for other forms of possible forex fraud punishment, avoid opening a live account with this company.
Many other more reputable online forex brokers offer better service and more effective regulation, and so you would be much better off dealing forex through them instead. Really, what reputable online forex broker needs to raffle off a fancy car to get business anyway? Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. Only the NFA regulated brokers featured on this site are available to U.
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