Investingstate.com Review – 5 things you should know about InvestingState

Investingstate.com Review – 5 things you should know about InvestingState

Beware! InvestingState is an offshore broker! Your investment may be at risk.

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The interface of InvestingState looks simple but straightforward and quite simple to navigate. The question is, however, is this broker reliable enough to entrust your precious money to it.

InvestingState Regulation and safety of funds

From the information provided by the company, we find out that the website is owned and operated by Wooko Global Ltd with an address in the Marshall Islands. What you should know about the Marshall Islands is that practically anyone can register a company on the Internet there without even having to set foot in the country. And, more important, there is no financial regulator for forex trade. The implications are that should you choose to trade with this broker, your funds will not be protected from scam or broker’s insolvency. We absolutely do not advise you to trade with this non-legit, non-licensed broker that could also be a scammer.

Alternatively, we suggest that you explore the information about licensed brokers from the well-established jurisdictions of the US, Australia, the EU and the UK. In these jurisdictions, there are many measures set in place to protect traders from scam and guarantee the safety of their funds. First of all, forex brokers in these jurisdictions must be well-capitalised which serves, among other things, as a barrier against scammers. The requirement for the EU and the UK is that licensed brokers must invest initial capital that is no less than 730,000 EUR. In the US, the initial capital is a staggering amount of $20 million and in Australia, a ‘modest’ 1 million AUD. To ensure the protection of clients’ funds, brokers must keep their clients’ accounts separately with tier-1 bank establishments, report their transactions on a daily basis to provide transparency of deals and provide protection against negative balance.

The cherry on top of the cake, however, is that in the EU and the UK, there are compensation funds and schemes and brokers that deduct funds towards them will be to provide reimbursement for their clients in case of bankruptcy. For example, in the UK, forex brokers regulated by the FCA that deduct funds towards the local Financial Services Compensation Scheme will be able to provide their clients with a compensation of up to 85,000 GBP per person. In the EU, brokers regulated by CySec and participating in the local Investor Compensation Fund will be able to reimburse their clients with up to 20,000 EUR per person.

It will be hard to find better conditions for forex traders than these ones and we advise you to use the links above to choose the broker that suits your trading needs.

InvestingState Trading software

InvestingState offers a web trader and MetaTrader 4 platforms. While trying to register a trading account, we encountered 2 problems. First, the link to the account sent by email was not secure and second the system did not open the trading account. So, we are not able to show you any of the platforms and discuss their features and the parameters that the broker has set up.

What we noticed, however, in the account types information on InvestingState website, is the fact that the leverage for forex currency trade can reach up to 1:400. Such high leverage signifies only two things – a high profit or a bid financial loss. Given the fact that around 70% of traders experience loss in transactions, chances are that the high leverage will result in big loss in case of unsuccessful transactions. We hope that you won’t get tempted by the ephemeral promise that the high leverage will increase your potential for making a big profit. Also, keep in mind that in all the well-established jurisdictions that we mentioned above, with the exception of Australia, leverage is capped at 1:30 for forex currencies in the EU and the UK. In the US, leverage cannot exceed 1:50. Keep low leverage aims at protecting traders from entering recklessly in transactions and suffering big financial loss.

We also want to mention here that MetaTrader 4 is a great choice of a platform and it’s a shame that the broker did not make sure that the links to downloading the platform work. MT4, despite its old age of 15 years, is still one of the leading trading platforms thanks to its excellent package of trading tools and instruments that include VPS, code base with customs scripts, an app market, auto trading option, trading signals, etc. Its array of charting options that provide a rich choice of charts, time frames and colours, and the technical analysis indicators, such as Bollinger Bands, Fibonacci retracement, moving averages, etc., help traders predict the future direction of exchange rates and make a profit.

However, a trading platform is as good as its broker is reliable and we already know that this is not the case.

InvestingState Deposit/Withdrawal methods and fees

On the company’s website, we see that the trading accounts are 3 – Silver, Gold and Platinum. However, the information about the minimum initial deposit is not available.

In the Terms and Conditions, we find that the minimum withdrawal amount is $50 via credit card and there are no withdrawal fees. Also, it may take up to 3 business days to process a withdrawal request.

Similarly to other non-licensed brokers, this one, too, offers bonuses which are subject to the condition that if the trader accepts a bonus, he/she must execute a trading volume equal to the bonus amount divided by 4 in order to be eligible to withdraw the bonus funds. Such conditions will present a challenge even to experienced traders and we ask you not to get tempted and avoid accepting bonuses. Besides, you must know that licensed brokers do not offer bonuses.

How does scam work?

No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.

What to do if scammed?

You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!

Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.

Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.

Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!

Rich Snippet Data
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Reviewed Broker
InvestingState
Broker Rating
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4 Comments

  1. They have only one drawback – high commissions. This is where a dilemma arises. You are either ready to put up with this and trade, or you are not ready and go at your own peril and risk to another broker. Personally, I am ready to put up with this because the quality is appropriate. For example, why is there one commission for buying shares at a price of $ 16, but a different commission for shares at a price of $ 2? I may not understand something, but it annoys me, to be honest.
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    Есть у них только один недостаток – высокие комиссии. И здесь возникает дилема. Вы либо готовы с этим мирится и торговать, либо не готовы и идете на свой страх и риск к другому брокеру. Лично я готов с этим мирится так как качество дают соответствующее. Например, почему за покупку акций по цене 16 долларов комиссия одна, а акций по цене 2 доллара другая? Я может что-то не понимаю, но меня это раздражает, если честно.

  2. Do not sign up with this bogus company try to get your money out once they have your money they dissapear no one returns emails or calls your basically fucked do not deal with these scammers

  3. Fraud!!! Scam!!! Unfortunatly I´ve lost my money at all. As I wanted to withdrawal my money on my account, they had changed my trading positions, so that I had been in a deep depth. So bad! Do not trade with them

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