Beware! Banco Invest 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.
For us Banco Invest felt like a peculiar mix of an old online casino about to expire in combination with an unfinished brokerage firm. That is our first impression, yet as we will see the the truth is not so far detached from the analogy. Read the review to find out just what type of a broker Banco Invests truly is.
To register the user must pass a couple of simple steps, and voila! The client has registered a seemingly live account. There we learned something about the trading software that eliminates the need to talk about any trading conditions. This will be explained further down the review, however what the reader must know is that Banco Invest has no usable trading conditions, i.e the spreads and leverages don’t really apply here.
Yet, we will still try to mention them. The leverage is caped at the typical for offshore brokers value, namely 1:500. The website said that the average EUR/USD cost of trade is 0.2 pips . which in all honesty, we find hard to believe. However, this spread seems to be applied to the ECN account, which is for high rollers only. A spread for the Basic account has not been revealed. Supposedly users can trade with forex pairs, indices, and an undisclosed amount of CFDs.
The website is available in English and Arabic.
BANCO INVEST REGULATION AND SAFETY OF FUNDS
Our mind boggles with question as to why firms like Banco Invest have such a hard time including any regulatory information. It is obvious that this firm is UNREGULATED, and most certainly a scam, but what is confusing is why it has not even tried to include false information.
Does Banco Invest think that modern forex users are so naive as to just deposit in a random scammer broker, without at least checking where it is located and whether or not it is regulated.
We are in no way defending this company, yet we are seeing more an more examples of this type of lazy behaviour coming from illegitimate brokerage firms. It is as if they have gotten so comfortable with their schemes that they have stopped putting any efforts in them at all.
Anyway, we digress. The main point here is that Banco Invest is not a safe place for any sort of investments, as it will most certainly scam you!
A big indication on how unregulated this broker is is the utter lack of legal documents. The footer gives us four essential legal provisional documents, and the clicking on each of them brings nothing but to refresh the home page.
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.
BANCO INVEST TRADING SOFTWARE
The alleged MT4 platform that is supposed to be owned by Banco Invest, as it turns out, has nothing to do with the current broker. Once we proceeded with downloading the provided MT4, we were faced with a download link under a different name: capitalcominvestment.
This third party, we assume, is another illicit brokerage with some kind of agreement with Banco Invest. Or not. It might be that Banco Invest “borrowed”the MT4. What ever the case is, it seems that Banco Invest does not have a trading software.
What is a broker without a trading software. The defining aspect of any brokerage firm is missing here, thus rendering Banco Invest just a website that takes your money for nothing in return.
BANCO INVEST DEPOSIT/WITHDRAW METHODS AND FEES
Depositing methods are limited to two e-wallets: Neteller and Skrill. We were able to pass the payment process with just €1. This amount conflict what the website claims, but as always we will put our trust into the user dashboard. And anyway, the broker is unlicensed, and therefore it can do as it pleases.
The minimum withdrawal amount here is $10, and the only way to withdrawal money if via a wire transfer. There is no reveal as to the processing times, nor is there any info on any potential withdrawal fees. Seeing that Banco Invest is illegal we will not be surprised, if by some miracle a user is able to withdraw, of incoming and confusing fees.
As we previously revealed, there are no legal documents. Needless to say that these papers are the essential bond between the user and the broker, and literally any company you want to use the services of, or buy products from, have binding legal documents that shape the legal relationship that underlines the customer merchant relationship. Without these, the merchant, or in our case, Banco Invest, can do what ever it wants with the user’s money and data.
All this piles up, and in the end you have a website that has no semblance of a broker. Banco Invest will try to lure you in with fake promises, will take your invested capital and at that moment will seize any and all communications with you! Do not deposit here!
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will 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.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.