Beware! Investment Management 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.
Investment Management is a broker that offers trading in Forex, Commodities and Precious metals. They do not have different types of accounts, but their FAQs mention “a Standard Classic Account”, for which the minimum amount required is $2,000. They also offer a Demo account via the MT4 trading platform.
The registration form asks for Name, Email address, Phone number, Nationality, Country, City and ID number. On submitting these details we were redirected to the client area, but no confirmation email was sent to our mailbox. We also had to agree to their Account Agreement (Risk Disclosure Statement), but the links to these legal documents were broken – they led to 404 Not Found pages on a different broker’s website.
Investment Management Regulation and safety of funds
Investment Management Co. Pty Ltd. claims to be based in New Zealand and authorised and regulated by the New Zealand Financial Service Providers (FSP). They also say they are regulated and supervised by The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and incorporated in St. Vincent and the Grenadines (SVG).
Upon checking this information however, we discovered it is false – the FSP number belongs to another broker and the NZBN number to a completely different company. The Canadian MSB registration number M19327148 belongs to the same broker – here is a screenshot of that broker’s website with the same registration details:
Actually, this other broker’s website is very similar structurally and design-wise to Investment Management’s one; we suspect they probably copied everything, including the registration numbers, from this legit broker. We also noticed that three of the links – Deposit Fund, Payment and Contact Us were also broken.
The broker’s bragging and misleading statements do not stop here – they say they have more than 379,000 clients and over $15 million total trade volume. They claim to keep client funds in segregated accounts and to work with 22 banks which provide liquidity. Considering their outright lies, however, these statements are hard to believe.
Investment Management is an anonymous and unregulated entity, and even worse – they are scammers who do not shy to put false statements on their website. This is confirmed by the Monetary Authority of Singapore (MAS), which included them in their Investor Alert List – see for yourself:
To conclude, Investment Management is not regulated by any respected financial authority and their promises for “segregated trust accounts” and “Ultra Low Spreads” are not grounded in any regulations they must adhere to. We should also note that there is not a single legal document, such as Terms and Conditions, on their website. If you are considering investing in Forex trading we would suggest finding a broker licensed by an established watchdog organization, such as the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) or the Australian Securities and Investment Commission (ASIC).
These agencies have other rules besides Segregation of Funds. The Minimum Capital Requirements for brokers regulated by the FCA or CySEC are 730,000 EUR, while in Australia they are AUD 1 million. European brokers have to participate in Compensation Schemes that provide additional guarantees to investors’ funds in case the broker goes bankrupt – up to 85,000 GBP in the UK and 20,000 EUR in the EU, and they need to comply with a Negative Balance Protection policy, which ensures that the traders may not lose more than the total sum deposited, in this way effectively preventing indebted accounts.
Investment Management is an anonymous, unregulated broker, however, so they are not bound by these rules and policies. Any claims regarding their excellent trading conditions and tight spreads they offer or the safety of clients’ funds are not guaranteed by any regulatory agency, so we would warn our readers that there is a considerable risk to their money if invested with this broker.
Investment Management Trading Software
The broker offers the MetaTrader 4 (MT4)T4) trading platform as a Desktop and Mobile (Android and iOS) application. MT4 is the world’s number one platform, preferred by more than 80% of users worldwide. It offers an intuitive and user-friendly interface, advanced charting and analysis tools, as well as copy and auto-trade options. It can be further customized to create different trading strategies using its proprietary MQL4 programming language.
Investment Management also claims to offer a cTrader platform, but we could not find any links to it. This is a newer, less-known trading software, which is available in Desktop, Web and Mobile versions, and there are only a dozen or so brokers that offer cTrader, of which only several are regulated and reputable.
Investment Management Trading Conditions
The EURUSD spread we see in the platform screenshot above is not very competitive – 2 pips, although in the website they advertise spreads from 0.1 pips. Regulated brokers usually provide spreads between 1 and 1.5 pips for this most traded currency pair.
Investment Management offers leverage up to 1:400. Trading on leverage can be tricky as it entails significant risks, especially to inexperienced traders. Although it allows for making bigger profits, one may incur great losses too, often much greater than the invested funds. That is why, most regulatory authorities impose leverage caps for non-professional traders: in the USA it is 1:50, while for brokers licensed in the EU and the UK it is 1:30.
Investment Management Deposit/Withdrawal Methods And Fees
In the FAQs, the broker claims to offer the following payment transaction methods – credit/debit card, wire transfer and third party payment providers such as PayPal and Moneybookers. In the client area there were no alternative methods, such as PayPal and e-wallet.
As we saw above, the minimum deposit amount is $2,000 which is extremely high. Respectable brokers usually ask for $200 minimum and there are some that you can open an account with just $10. The processing fees – 4% on credit cards and 2.4-3.9% for PayPal and others – are also excessive.
Overall, we must say that Investment Management is definitely a scam broker – stay away and do not invest with them!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.