Beware! J.Investment 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.
At first glance, everything on J.Investment interface looks come il faut just like any other of the thousands of forex brokers you can find on the Internet. We look at some key features on this company’s website to decide whether it is safe to trade with it.
J.Investment Regulation and safety of funds
From the information provided on the website, we see that J.Investment Company is authorised and regulated by the British Virgin Islands (BVI). We checked the register of the British Virgin Islands Financial Services Commission (FSC) but the name of this broker did not appear to be in it. This is proof that J.Investment is not reliable to trade with and is probably a scammer.
Although FSC in the British Virgin Islands regulates forex brokers and to be licensed they must invest between $100,000 and $1 million which is decided on a case by case basis, there is no guarantee for the safety of your funds and we advise you to select a broker from one of the well-established jurisdictions around the world – the US, Australia, the EU or the UK. Forex brokers in these jurisdictions are strictly regulated to avoid scammers infiltrating their ranks. First of all, to get their license, the forex brokers must be well-capitalised. The amounts for the initial capital ranges from $20 million in the US to 1 million AUD in Australia and 730,000 EUR in the EU and the UK. In addition to that, to provide safety for the clients’ funds, brokers must keep them segregated with tier-1 banks, provide protection against negative balance and report transactions on a daily basis to avoid shady deals.
There are some additional advantages if you choose a broker from the EU or the UK because licensed brokers there must also deduct funds towards a local compensation fund or scheme from which the clients will be reimbursed in case of insolvency. If the broker is regulated by CySec and participates in the local Investor Compensation Fund, then its clients will be reimbursed up to 20,000 EUR if the broker goes belly up. In the UK, the amount of recompense is much higher – 85,000 GBP per clients but only if the broker is licensed by FCA and deducts funds towards the local Financial Services Compensation Scheme.
J.Investment Trading software
J.Investment is a forex broker trading in CFD, indices, commodities and bonds and its clients can use a web trader for their trading activities.
The image below shows what the platform looks like – a rather simplistic software that does little to facilitate the transactions. On the left-hand side of the screen is the menu for the trading products. The display in the middle shows the chart of one of the major forex currency pairs, EUR/USD. From the bid/ask price, we find out that the spread for this pair is 0.7 pips which is tight and below the industry average. The tight spread is beneficial for traders as the cost of transactions won’t be too high and they will be able to make a sustainable profit.
If you look at the image with the trading accounts, you will notice that first of all, the leverage is erroneously mentioned as ‘spread’ and secondly that the ratio of the leverage is too high – up to 1:200. Trading with high leverage looks like it amplifies the potential for making a big profit but this is misleading given the fact that around 70% of traders experience financial loss in transactions. The end product can easily be a great financial loss multiplied by the high leverage. We do not advise our readers and potential traders to engage in transactions with high leverage.
Also, we need to inform you that in the well-established jurisdictions we mentioned above, the leverage is capped to provide to some extent protection of clients’ funds and in the EU and the UK it is limited to 1:30 and in the US, to 1:50. Only in Australia, the leverage is still unlimited which will change in March 2021 when ne regulations will impose a cap on leverage that mirrors the one in the EU and the UK.
If you are not familiar with the existing trading software, let us tell you that there are trading platforms far more superior to a web trader. The best ones are MetaTrader 4 and MetaTrader 5 platforms which are very popular among 80% of the forex brokers thanks to the excellent packages of trading tools and instruments, charting options and technical analysis indicators they are equipped with. Among all, we want to mention the auto trading option, VPS, code base with customs scripts, an app market, trading signals, a financial calendar, etc.
We strongly recommend you to trade with a licensed broker that will offer either of these platforms for your enhanced trading experience.
J.Investment Deposit/Withdrawal methods and fees
Looking at the trading accounts image, we can see that there are 6 existing trading accounts – Minimum, Bronze, Silver, Gold, Platinum and Black. The minimum initial deposit for the Minimum account is $500. The other accounts start at $2,500, $5,000, $10,000, $20,000 and $100,000 respectively.
There is no information on J.Investment about payment methods for deposits and withdrawals or any mention of fees.
If you look again at the trading accounts image, you will notice that beneath the name of each trading account, there is a bonus which percentage varies according to the account. However, in all the information supplied by this broker on its website, there is nothing about the conditions under which these bonuses are given. The only information we could find was about ‘Refer a friend’ program where clients of the broker are encouraged to invite other people to join and are promised $50 if they do so.
We advise you to exercise utmost caution where bonuses and other incentives are concerned and always read the conditions under which such incentives are given. Better yet, do not trade with a broker offering bonuses and remember that licensed brokers never offer them.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.