Beware! Investro 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.
Just by looking at Investro interface, you would think that everything with this broker is as it should be. After all, Investro offers an all-inclusive and secure trading environment with a reputable and reliable broker. Or so they want you to believe. Let’s check the facts.
Investro Regulation and safety of funds
From the information available on its website, we find out that Safe Solution Kft that owns and operates Investro with an address in Budapest, Hungary. The official regulator of forex brokers there is the National Bank of Hungary. We checked its register to see if this company’s name is in it. It is not. This is sufficient proof that this broker is not registered and not regulated and as such, engaging in any trading activities with it will put your precious money at risk.
For your information, Hungary, as a member of the EU follows ESMA regulations and the National Bank of Hungary is the watchdog that makes sure that brokers meet the regulation conditions in order to get their license. Same as everywhere in Europe, Hungarian brokers must deposit no less than 730,000 EUR initial capital, keep their clients’ funds segregated with top tier banks, provide negative balance protection, report transactions on regular basis, etc. In addition to that, Hungarian brokers are required to participate and deduct funds towards the Hungarian Investor Compensation Fund which serves to reimburse clients with up to 20,000 EUR per person if the broker goes bankrupt.
If you are looking to expand the scope of your search for a suitable forex broker, we can also recommend exploring trading possibilities with UK brokers. The conditions for forex trade in the UK are the same as in the EU. The only difference is that UK brokers regulated by FCA must deduct funds towards the local Financial Services Compensation Scheme which can provide reimbursement of up to 85,000 GBP per client if the broker becomes insolvent.
Investro Trading software
Investro trades in stocks, forex, indices, commodities and cryptocurrencies. The trading software available to the clients is the MetaTrader 4 trading platform. MT4 is one of the most reputable trading platforms despite the fact that it has been on the market for over 15 years. Its popularity is largely due to the excellent package of trading tools and instruments that the platform offers, i.e., auto trading option, VPS, code base with customs scripts, trading signals, an app market, etc., which enhance clients’ trading experience and help them make a profit.
However, a platform is as good as its broker is reliable and as we already know this is not the case. In the image below, you can see what the platform looks like – on the left-hand side is the menu for trading products and beneath it is the navigator for the accounts, indicators, expert advisors and scripts. The centre of the screen is reserved for displaying charts which number can vary as per the trader’s needs. In this case, you see displayed 4 charts for 4 currency pairs with their bid/ask price and fluctuation in the price in a given time frame. If we look closely at the EUR/USD currency pair which chart is shown in the top-right corner, we’ll notice that the spread is 1.6 pips which is slightly above the industry average of 1.5 pips. With such spread which is not too wide, the cost of transactions won’t be too high and the traders will be able to achieve sustainable profit.
However, what worries us is the leverage which, as per the information regarding the different trading accounts can reach 1:500. Firstly, using such high leverage is another proof that this broker is a scammer as all EU licensed brokers following ESMA regulations have limitations on leverage for forex currencies which is capped at 1:30. Secondly, such high leverage amplifies the risk exposure for clients’ funds because, as per the statistics 70% of traders lose in transactions which means that the chances of losing are greater than the chances of making a profit. In such cases, the high leverage will increase the scope of financial loss suffered by the traders.
Investro Deposit/Withdrawal methods and fees
Investro offers 4 trading accounts – Bronze, Silver, Gold and VIP. From the FAQs section on its website, we find out that the minimum initial deposit is 250 EUR/USD/GBP. There is no information on what the initial deposits for the other two accounts are.
The deposit and withdrawal methods include payments made via credit card, eWallets or bank wire. As per the information in the Deposit and Withdrawal section, the company does not charge fees on deposits or withdrawals.
How does scam work?
If scammers make a movie, it will probably be called “Dream on”. They make everything sound credible and build their scam on your dreams of getting an easy and quick profit. People get duped if they decide to deposit money into one of the scammers’ schemes. What you probably do not know is that your hard-earned money goes as commission to the scammers. Next, you get inundated by daily calls. First, the scammers congratulate you for joining their business, next they try to persuade you to invest even more money. After all, the more money you send, the bigger money fall you can expect. This of course is not how things work. By the time you realise that no money is coming your way, it might be too late. All you want now is to get your money back and get out of there but the scammers have other plans for you and they won’t late get away so easily. Now they try to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
If you get scammed, our advice is to act immediately and if you have paid your deposit via credit/debit card you may still have a chance. Visa and MasterCard allow you 540 days time limit to file for chargeback which gives you a fighting chance to recover your money.
However, if you have used bitcoin or bank wire for your payment, the chances of you recovering your money are really slim.
Cancelling your credit/debit card in case you have given the scammers your CVV code may be another good idea. Also, make sure to remove from your PC any software that my give scammers access to your private data stored on your computer.
Whatever you do to recover your funds, beware of the so-called recovery agents. Please make sure that you are dealing with a genuine one by checking their credentials and company’s information transparency. Otherwise, you may fall victim to another form of scam.