Beware! Provinvest 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.
Provinvest captured our interest with the headquarter address they listed- 30 St Mary Axe or The Gherkin, one of the world’s most recognisable buildings. However, the more we scrutinised this broker, the more controversial features we found. In the end, we can conclude it’s among the most contentious brokers we’ve ever encountered. We need not write a review, but a whole book if we want to put down all of the fraudulent claims and professions they make. Find out the crucial facts about this sham FX creature in the full Provinvest review.
Provinvest REGULATION AND SAFETY OF FUNDS
Provinvest pretends to reside in Central London, but we found it’s not the case. On the webpage footer, they put the details of another company bearing a pretty similar name. We researched and found the company, but it has nothing to do with this website. In fact, the legit company isn’t even licensed to operate as a Forex broker. So, Proinvest abuse the details of a genuine company, which is a type of fraud known as firm cloning. Your funds are in danger if you deposit with Provinvest because it’s a clone firm trying to steal as much as possible from the people.
But it’s not the end; we saw another company introduced in their Terms and Conditions- Provinvest Ltd. There is absolutely no information about this business except for tens of negative reviews throughout Russian websites. We also need to note that most of the legal documents presented are written in Russian, which clearly indicates where they mostly operate.
Avoid this broker and see the CySEC regulated (EU) and FCA regulated (UK) brokers, we’ve shortlisted. We recommend the Europeans for the safe trading environment they created. The brokers operating there have to comply with many strict rules, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients’ accounts etc. But most importantly, the brokers are covered by the deposit insurance funds inaugurated to protect clients’ money. If you trade with CySEC brokers, you can claim up to 20 000 EUR in compensation, while the British guarantees are of even up to 85 000 GBP per client. Each EU member state is compelled to create similar funds seen as the last resort for traders if a Forex broker can’t meet its financial obligations.
Provinvest TRADING SOFTWARE
Provinvest introduces itself as a MetaTrader broker, but it’s a lie. They cannot supply with the software, which is yet another sign indicating a scam. Many fake brokers falsely pretend to offer MT, taking advantage of the platform’s spotless reputation while seeking to entice people into their scam schemes.
The trading platform provided is actually web-based. Given the fact Provinvest is an illegal swindling enterprise, we can justly expect their trading software to be fraudulent as well. Generally, the web-based platforms brokers create by themselves are considered open to fraud and price manipulation. Beware!
Provinvest offers surprisingly good spread- 0.6 pips, but it’s not a reason to open an account with them. The spread is the price clients have to pay to execute a trade, so lower Buy/Sell difference is beneficial, improving profit potential significantly. Many legit brokers deliver tiny spreads even with their micro-accounts, so it’s not worth wasting your time and money with Provinvest.
The maximum leverage provided is 1:400, a ratio no longer considered adequate for retail traders. The leverage is a hazardous tool, so EU, UK and Australia (from 2021) forced a cap on the market- 1:30 as a customer protection measure. Canadian brokers and US brokers are not allowed to offer more than 1:50. Companies 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.
Provinvest DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit with Provinvest is negotiable. The only funding method available is Bitcoin, which is yet another red flag we need to raise. Bitcoin payments are final, non-refundable and totally anonymous. It’s by far the dearest funding method for scammers, and it’s solid evidence of fraud if the broker accepts only Cryptos.
There are tens of legal documents Provinvest put on their website, but we found nothing about necessary provisions such as withdrawal requirements, fees, request processing time, clarified refund policy etc. Most of the documents are written in Russian, so we couldn’t accurately assess the information within.
Provinvest offer bonuses starting from 100% on the deposit, but it’s just a marketing tool to lure the people into the trap. We found no information about the Bonus terms and conditions applied. Traders should be cautious when accepting trading incentives because the so-called bonuses are not free money but a leverage tool which makes trading even riskier.
Overall, Provinvest is a fraudulent clone firm, so stay safe and avoid this broker.
HOW DOES THE SCAM WORK
One can see hundreds and thousands of promising ads on the Internet and social media. Unfortunately, many of these are fraudulent schemes targeting to rip the people off their hard-earned money.
If you click and provide scammers with your e-mail and contact number they’d contact you immediately and would promise you anything to make you deposit with them as quickly as possible. Most of the scammers are experienced manipulators and before you know it they’d ask for your bank card numbers to make the transaction “easier for you”. The urgency is a warning sign; the fraudsters are always in a hurry to persuade you to begin investing.
But the first deposit is only the beginning. Gradually scammers would ask for more money no matter the circumstances. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d try to convince you to invest more and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and even ask you to pay them if you want to withdraw. The scammers’ mantra is “give me your money”, they’d insist every day you should deposit more and more, for no obvious reason. Legit companies do not bother you on the phone to deposit with them, so if someone urges you to start investing, it’s most probably a scam.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. In case you got scammed first 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!