Beware! Inovestment is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Inovestment is a would be forex broker that offers a slick website, but that does not make it professional. The broker provides the Activ8 trader that gives us a EUR/USD cost of trade of 3 pips which is a clear reminder of the broker’s offshore status. We got a leverage of 1:100 on the trading platform, while the broker claims to offer a leverage as high as 1:500.
INOVESTMENT REGULATION AND SAFETY OF FUNDS
The parent company of the broker, Domus Partners, is said to be registered in the small island nation of St. Vincent and the Grenadines, which is the ideal location for illicit brokers, since the country does not regulates the forex market. This means that any would-be broker can register there without issue and start offering shady trading services, while twisting the rules, much like Inovestment has done. Furthermore, it does not say that the broker is actually a hold of any sort of license, which again staples Inovestment as an UNREGULATED broker. Without a regulation users should be aware that the safety of their funds might not be the priority of the broker, since there are no rules by which Inovestment should abide by.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent.
The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
INOVESTMENT REGULATION AND SAFETY OF FUNDS
We were able to open what seemed like a live account on the Activ8 trading platform, which is never a good sign, since all legitimate forex brokers require many id documentations before opening a live account. Activ8 is actually quite decent, even thought it does not compare to the MT4. Activ8 offers an interesting approach to the trading terminal principle by giving each individual asset a small tab, quite a useful tool. Trader can even copy trading strategies and pending orders. Yet the platform is directed at more novice traders since it lacks the complicated and professional nature of the MT4.
We got a 3 pip spread for the EUR/USD currency pair. This cost of trade is twice the industry average, meaning that it is in favor exclusively for the broker. The leverage on the platform was capped at 1:100 The platform gave us access to Forex Pairs, Crypto, Commodities, Indices and Stocks.
INOVESTMENT DEPOSIT/WITHDRAWAL METHODS AND FEES
The minimum deposit according to the client area is $10. The deposit and withdrawal methods on the portal are Wire Transfer and Credit/Debit Cards.
The broker mentions some sort of processing and handling fees: $50 for wire transfer; $35 for credit cards. Furthermore, a 10% charge will be lifted from any withdrawal amount if the trader has not executed a more than 200 in turnover (trading volume requirement). Similarly, bonuses cannot be withdrawn unless that trader has completed a trading volume requirement of 25 the deposit+bonus.
We strongly advice traders to only deposit the minimum deposit, or better yet- not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
How does the scam work?
The most common type of scamming is in fact a very simple scheme that involves multiple level of commitment from both the victim and the fraudulent broker. In the following section we will dive into the individual elements that make up this scenario.
Users of the net will be lured or intrigued by the countless ads that float around the internet, mostly on popular websites such as social media hubs. These ads promise fast money, and are accompanied either by images of luxury or made up testimonials. Clicking on them redirects users to a so called robo-scam website such as xxx or xxx, where a simple registration process will require from you a telephone number and email address. We assure traders, that once these details have been shared, they will shortly get a call from the broker or brokers, on whose ad you just “stumbled”; this is when the game begins. The voice on the other end of the line will urge you to deposit in their broker some $250 (approximately), by reassuring you of the possibilities of profit, and the like.
Should you deposit, the initial scammer has just earned a hefty commission from this deposit. Now it’s time for the senior scammer to talk you into depositing more, by claiming that the only way to increase profits is to deposit more and larger sums. These second level frauds are great talkers, charismatic and influential, twisting their lies to sound like the absolute truth.
At some point or another, the trader will inevitably start suspecting something, and will want to withdrawal his/her funds.
At this point, the con artists will delay the withdrawal process by persuading you to wait, or by referring to their legal documents that cover specific withdrawal clauses- excuses vary from broker to broker This delaying process is crucial to them, for trader have a limited time to file for a chargeback with their respective bank. Once the chargeback time frame runs out, traders will have lost their money for ever.
What to do if scammed?
VISA and MasterCard users will be happy to know that have extended their charge back request period to 540 days for when online scams occur. In case a chargeback is unavailable for some reason, the next immediate route is to cancel your credit card ASAP.
Those of you who deposited using VISA and MasterCard wil be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
If any bank details have been shared, like banking pass or security code, traders should be aware that scammer will most certainly attempt to drain your account. In such a case, immediately block the account or change the password.
We also urge users to be very careful with the so called “recovery agents” that promise to recover lost money from unlicensed broker. They charge a fee for their alleged services, and will unquestionably not recover any previous deposit, basically scamming you a second time.