Why is this scam
InstaForex is a Russia-based forex broker offering online trading services for investors since 2007. This broker is one of the oldest brokers in Forex market. In this process, it has expanded its client base with different types of accounts and innovative services. We found that it has become one of the best-known forex brokers, especially among Asian countries. The issue of regulation is not a matter of stability in InstaForex. We found that InstaForex has two licenses from two different regulators: CySEC in Cyprus and FSC in British Virgin Islands. When we looked at client comments on different websites, we sometimes saw that different licenses are being used by InstaForex. For example; There are web sites claiming that Instaforex is regulated by Central Bank of Russia (CBR) or RAFMM (Russian Association of Financial Markets) in Russia. That was sign to be cautious. Some clients have also indicated that they are licensed from Belize. However, when we examine the broker’s official website, we see that there are two different licenses. The license problem here confuses the investors’ minds that the broker’s license was canceled after a problem. The license may expire and the brokers may prefer to be licensed from another regulator instead of renewing the same license. This is understandable, but if you are serving so many countries, it is a good idea to be licensed as much as possible from different regulators.
The signs of confirmation
Instaforex is a suspicious broker, they deceive most people with their Instaforex bonus scam. We found, despite their site displaying UK contact details, they’re not FCA regulated. If something goes wrong with them, any money you have with them is most likely lost, if you’re trading in the UK. That fact may suggest that they are shady.
On the surface, the website seems to be a legitimate forex broker, even claiming to be the “best broker of Asia”. Yet even this claim is worrisome since the verb “to broke” in forex market terminology implies the act of manipulating two parties into trading.
We received complaints about Instaforex on a daily basis. Instaforex is very popular but nevertheless you have to ask if Instaforex is reliable or not. Just because it’s big doesn’t make it trustworthy.
There are scam complaints with every Forex broker and Instaforex is no exception. A lot of complaints come from trader that tried to abuse the Instaforex bonus program and got their account locked. This is a good reason and the broker has the right to do so.
When you register for opening an account independently on the state or country you live in they will send you to their Insta Service Ltd. Which is an offshore company (the regulation is questionable and very different from the one in UK or US where their firstly claim to be registered).
Let’s see the other signs.
The Cyprus Securities and Exchange Commission (‘CySEC’) just imposed a total fine of €130.000 to the owner of InstaForex and ForexMart forex brokers, Instant Trading EU Ltd, for non-compliance with the applicable laws. More specifically, the Company has failed to comply with certain provisions of the Investment Services and Activities and Regulated Markets Law regarding the use of leverage, the granting of bonuses to clients, and ensuring negative balance protection. For this non-compliance, the owner of InstaForex and ForexMart is fined with €90.000.
Recommendation – There is no need to call Instaforex a scam but we call you to be extremely cautious.