Beware! 2Invest 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.
2Invest is a regulated offshore broker, but the license doesn’t make them any safer. They focus exclusively on South and Central America, and it’s actually a challenge to access their website outside these countries. 2Invest is a really restrictive broker, saddling its clients with burdensome fees and requirements. Find out what makes them a wrong choice in the full 2Invest review.
2Invest REGULATION AND SAFETY OF FUNDS
2Invest is a Seychelles broker, a trading name of Aronex Corporation Ltd– an FSA licensed company. Another company called Habonix Solutions Ltd acts as a payment provider and also participate in the broker affairs. The latter is based in Cyprus, but in this case, they do not need a CySEC authorisation as long as 2Invest only accepts South and Central American clients. However, the Seychelles license is a bit problematic because it realistically doesn’t mean anything. Even though the island is viewed as improving, its regulatory framework is still in its infancy. The only significant customer protection rule is the capital adequacy requirement- $50 000 paid-up, which quite frankly doesn’t change the story much. Seychelles brokers are still considered precarious due to the lack of competent regulation. Your funds are not safe if you deposit with 2Invest notwithstanding their license.
Avoid 2Invest and see the European brokers and British brokers we singled out. Clients from South and Central America can freely open accounts with these companies, so go ahead. Europe is financially stable, and the regulators supervising the FX markets put the customer protection on top of their priority list. There are many strict rules brokers have to comply with to get a license, but most importantly, the EU and the UK created money protection schemes sheltering clients’ money. If you trade with Cyprus regulated brokers you can claim up to 20 000 EUR in compensation, while in the UK the protections are of even up to 85 000 GBP per client. Each EU member state has to operate similar deposit insurance fund, seen as the last resort for traders in case brokers fail to meet their financial obligations.
2Invest TRADING SOFTWARE
Unfortunately, we couldn’t approach the MetaTrader platform 2Invest provides. We have to raise a red flag here because clients have to deposit real money to complete the registration. But it’s getting worse for it’s virtually impossible to get to their platform unless you registered. In other words, you have to put money if you want to demo trade. That’s a warning sign whatsoever! On the other side, the European brokers we recommend let clients register for free and create demo accounts themselves, whenever they want. The platform case makes 2Invest a broker we highly do not recommend.
2Invest claims to offer spreads starting from 0.7 pips, but this ratio applies only to their Platinum account. The standard accounts come with 2.2 pips EUR/USD spread, which is a rate no longer considered competitive. Most of the European brokers offer 1 pip and below, with many of them providing as low as 0.1. The spread forms part of the trading costs, so lower Buy/Sell difference benefit traders and enhance profit potential.
2Invest provides with a maximum leverage of 1:500 for FX majors, a ratio we do not recommend using. Such a level can quickly drain the balance, even in low-volatility hours. The Cryptocurrency pairs level is 1:2 though. The leverage is a hazardous tool, so EU, UK and Australia (from 2021) restricted the maximum allowed leverage to 1:30. Canada and the US agreed on 1:50, so brokers offering higher ratios are not recommended due to the absence of adequate regulation, the risks aside. The Swiss brokers, are not leverage restricted, but Switzerland keeps scam away with its capital adequacy requirements- more than 22 mln USD to get an FX license.
See the regulated MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is the most popular retail Forex trading platform globally, which traders prefer for its reliability and ease of use. It features sophisticated trading tools rare to find elsewhere for free such as Expert Advisors, Algo Trading, Complex Indicators, reliable Strategy testers and even a marketplace with more than 10 000 trading apps and counting.
2Invest DEPOSIT/WITHDRAW METHODS AND FEES
The funding methods 2Invest accepts are Credit/Debit cards, Wire Transfers and e-wallets, but they fail to specify which ones are actually available. The minimum deposit is $100 for Credit/Debit cards and e-wallets, but $1000 for Wire Transfers. That’s an insane discrepancy we cannot really comprehend! Wires requirements are 10 times higher than the regulated brokers’ standards- $100 on average to let traders begin.
The minimum withdrawal amount is $100, which is yet another unfair restriction. There aren’t withdrawal fees, but traders have to pay $50 charge in case of insignificant trading– 2 positions opened minimum. However, they fail to specify this minimum trading requirement time frame. 2Invest process the withdrawal request within 7 days, which we consider a lifetime. Compare to most of the regulated brokers now, no or minor withdrawal requirements, no fees and withdrawal processing time of 48 hours on average.
The inactivity fees are monstrous. We’ve rarely seen such plunder before. The initial fee is $80 after 60 days of inactivity, and it’s changing periodically. See the dormant account policy in the screenshots provided at the bottom of this section.
There are no trading incentives offered at the time of writing, but 2Invest reserve the right to launch bonus campaigns in the future. However, they fail to clarify the size of the bonus, and the additional provisions applied.
Overall, 2Invest is an offshore broker that cannot guarantee traders’ deposits safety, notwithstanding their license. 2Invest doesn’t allow demo trading and collect oversize fees. Stay safe and avoid 2Invest.
HOW DOES THE SCAM WORK
The scam brokers legal documents are filled to the brim with unfair clauses and requirements practically eating up the traders’ balance- unbearable fees, unjust trading volume requirements, monthly administrative fees and so on, the list is endless. The scammers delay the withdrawal requests as much as possible, so the account gets hammered by the costs. Eventually, the balance in the account would shrink so much that scammers don’t have to send any money back to the traders and it’s perfectly fine according to the Terms and Conditions that apply. The regulated brokers do not introduce unfair requirements because they’ll get hit by the authorities once they do it. That’s why scammers are running away from financial regulators and prefer the offshore jurisdictions with low or no regulation.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to fraud. In case you got scammed, you need first to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
It’s crucial not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. They ask for an advanced payment, but do nothing to help you recover your losses and simply pocket the money you’ve sent!
Share online your experience; it’s important to protect others, as well. Be responsible!