The quality of trading services offered by brokers directly impact your trade, i.e. better the quality greater is the profit size. Those brokerage firms which fail to provide exceptional services end up putting their clients into difficulty. They further block trader’s chances of profit expansion. InstaForex is doing the same with its users. Its outdated trading platforms, unrealistic leverage and poor services are the biggest hurdle in trading success. Other renowned brokers are offering better and affordable services as compared to this brokerage firm.
Also, keep this vital point in mind while trading that never opts for a broker by reading some biased reviews and following the broker’s misleading website.
Is InstaForex Scam or safe?
Regulation is the main point which tells whether the broker is safe or not. InstaForex is not regulated by any central financial body such as CySEC, ASIC and FCA. Some random and offshore jurisdiction regulates the main branch of InstaForex. We do not know why the broker has not taken any action over the years to register itself with some authentic regulatory body.
There could be just one reason behind this; the broker wants to hide some suspicious activities from traders. It does not want any authority to point out these activities and cancel its license. Moreover, there is nothing with the broker on the security part. Thus, your personal information and transactional information along with money is at risk with the firm. Think before reaching any decision.
The trading platforms offered by InstaForex are poor and outdated. Today, the entire trading operations have shifted to MetaTrader 5, and the broker is still providing MT 4. MT 5 is an amazing platform which offers some excellent features such as multiple time frames and advanced analytical tools along with lightning-fast speed.
We don’t know why the broker is not upgrading its platforms. The demand of the contemporary world is fast and ultra-modern platforms to grab each opportunity. Therefore, a slow platform might create a problem for traders while setting instant and quick bids.
Tradable markets and instruments
The broker offers trading on restricted assets. It blocks all the ways to diversify your trading portfolio. Also, traders may lose some of the vital opportunities in the financial market.
Moreover, the fees associated with forex trading and CFD trading are relatively high. Thus, an average trader can find it difficult to pay this huge amount.
Demo trading account
The demo trading account allows you to practice trade before entering the real trading world. InstaForex offers this account but for a limited period only. Moreover, it is not free as the website says that virtual accounts are available from 5000 dollars up to 1,500,000 dollars. It has nowhere mentioned that it is virtual cash or the amount required to open the account. We don’t know why it has kept this fact in ambiguity. It seems like a trap. Stay away.
The broker offers unrealistic leverage of 1:1000. It gives us a warning sign about the firm being a major red flag. This seems to be a build-up number to lure and trap traders. No renowned and reliable brokerage firms provide this huge leverage on trades. Above all, the limit is also far beyond the one permitted by some authentic bodies. The European Union has fixed the maximum permissible limit of margin to 1:300.
The firms offering above this limit are regarded as unsafe and untrustworthy for trading. Moreover, trading on such a high margin is risky as leverage not only magnifies your profits but also surges your losses. Many traders lose money while trading on high margin. The broker knows this fact very well and has mentioned this in risk disclaimer but fails to abide by this. It is only focusing on making a profit without thinking about traders.
Customer support service
The broker has a poor customer support team which fails to render the quick response and relevant answers. We have checked the potential of the team on our level.
- Our experts called multiple times and got no response from the other side.
- We also sent mail and received a response on the 3rd day.
- The live chat option is just to show off it remains offline most of the time and gives irrelevant answers as operated by a robot.
The customer support service is the backbone of any business, and unfortunately, the broker’s services are not satisfactory.
What are the disadvantages associated with InstaForex?
There are several setbacks of trading with InstaForex. Consider all these points before reaching any decision. A single carelessness can put your entire trading career and money at risk. Read the following points:
1) The main branch of the broker is regulated by some offshore and untrusted authority.
2) The firm charges high fees and commission on trading. Thus, making the platform beyond the reach to average traders.
3) Tradable markets and products offered are limited and fail to expand your trading portfolio.
4) Commission of CFDs on indices and energies and forex market are pretty high.
5) The broker has the worst customer support team, which fails to provide a relevant answer and quick response.
6) It offers unrealistic leverage of 1:1000, which pushes traders towards risk.
7) Account opening process is slow and time-consuming.
8) Educational resources are not up to mark and lack many vital concepts.
The Bottom Line
The experience does not reflect that the firm is safe and offers top services. It is clearly visible in the case of InstaForex. Though one of the oldest firms, it has failed to deliver top class service to its clients. It needs many upgrades in terms of trading services, platforms, educational courses and website. The website of the broker seems to be misleading and contains many irrelevant information and photos. Thus, leaving some vital and essential data.
Also, the firm falls under the list of scam brokers. Both your money and personal information are unsafe with the firm. Think twice before making any decision. You can opt for some better and reliable firms over InstaForex, including 101investing, ETFinance, ROinvesting, and T1markets.
Frequently asked questions
Can you trust InstaForex?
No, Regulation is the main point which tells whether the broker is safe or not. InstaForex is not regulated by any central financial body such as CySEC, ASIC and FCA. Some random and offshore jurisdiction regulates the main branch of InstaForex.
Does broker allow trading on margin?
The broker offers unrealistic leverage of 1:1000. Trading on this margin can be extremely risky.
What are some disadvantages of InstaForex?
Some of the major setbacks of the broker are discussed in the following points.
- Lacks advance research tools
- Numerous hidden charges
- High trading fees and commission
- Limited educational resources
- Unrealistic leverage of 1:1000
- Limited trading markets and instruments
- Outdated trading platforms
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