Beware! Italianoinvest 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.
Italianoinvest is trying to entice potential clients by claiming that it is a fully licensed and regulated broker that guarantees the safety of clients’ funds by keeping in fully segregated accounts. Is this tempting enough to lure unsuspecting traders into entrusting their precious money to this broker? We find out the facts.
Italianoinvest Regulation and safety of funds
Italianoinvest does not show an address on its website which is a prerequisite to verifying its legitimacy. Without an address and information about in what jurisdiction this broker is licensed, all claims about being legit are void. Furthermore, CONSOB which is the Italian authority responsible for the regulation of forex brokers has issued a warning against Italianoinvest saying that this company is not authorised to offer financial and investment services and has blocked its site (image below). Needless to say, if you choose to trade with this broker your hard-earned money will be at risk.
Italian brokers are strictly regulated by CONSOB and they must comply with the Markets in Financial Instruments Directive (MiFID) according to which they must provide a minimum operational capital of no less than 730,000 EUR, guarantee negative balance protection, keep clients’ accounts segregated with top tier banks, file regular reports and conduct internal and external audits. Italian brokers must also participate in the local investor compensation fund which provides up to 20,000 EUR per client if the broker is found insolvent.
The conditions for trade for the rest of the EU brokers are much the same and the links we provide will help you select a legit and reliable broker to trade with.
Italianoinvest Trading software
Italianoinvest trades in forex, indices, metals, commodities, energies and the trading software consists of the MetaTrader 4 and MetaTrader 5 trading platforms. We must say that this is a good choice of quality software and both platforms are on top of the list for trading software. This is largely due to the excellent package of trading tools and instruments that offers a lot of advantages to the traders. For example, both platforms are equipped with an auto trading option, VPS, trading signals, a code base with customs scripts, an app market, a financial calendar, etc. The charting options at traders’ disposal are also incredible and offer a variety of charts, time frames, colours and even the option of creating customised templates. Combined with the array of technical analysis indicators, such as Fibonacci retracement, Bollinger Bands, moving averages, etc., they help the trader predict the future direction of exchange rates and make a profit.
Below is an image of the MT4 trading platform and on the left-hand side of the screen, you can see the menu for the trading products with their bid/ask price and beneath, the navigator for accounts, indicators, expert advisors and scripts. In the middle is displayed the chart of the EUR/USD currency pair from which bid/ask price we can calculate that the spread is 0.2 pips which is really tight and means that the cost of transactions won’t be too high and traders will be able to achieve a sustainable profit. However, we are worried that the parameters of the leverage are too high – 1:500 which will be risky to use as it amplifies the scope of financial loss suffered by traders in unsuccessful transactions. EU and UK brokers are banned from using leverage that is higher than 1:30 for forex currencies which is a measure to protect clients’ funds and prevent traders from entering reckless and risky transactions.
Except for the Australian brokers who until 29 March 2021 can offer unlimited leverage, high leverage is a sign that the broker is fraudulent.
Italianoinvest Deposit/Withdrawal methods and fees
A very important document is missing from the Italianoinvest website and that document is Terms and Conditions. When registering an account with this broker, clients will see that there is a link to that document but it is broken. First of all, such a document is crucial as it states the legalities and trading conditions between the client and the broker and opening an account without being informed of what they are would be foolish. And secondly, a licensed and self-respecting broker would have such a document visible and readily accessible on its website.
From the image below, you can see that Italianoinvest offers 2 trading accounts – Raw Spread account and Standard account. The minimum initial deposit for both accounts is $200. From the information available on the website, we understand that the deposit and withdrawal methods consist of payments made via credit card and eWallet and there is no commission.
The broker does not provide information about what the minimum withdrawal amount is, though.
How does scam work?
No one wants to be duped by scammers, but it happens all the time because they know how to manipulate people. As they say in one popular song “sweet dreams are made of this” and this is what scammers rely on – creating in people’s mind a sweet dream of being rich! Scams usually start by unsolicited telephone calls or ads on the Internet or social media promising quick and easy profit. It is easy to fall into scammers’ trap and once you make a deposit, you are done for! Scammers won’t let you get away easily even if you realise that you are being scammed. They will try to delay you when you try to withdraw your funds by asking you to provide this document or fill out this form, etc., in order to make you miss the deadline when you can file for a chargeback.
What to do if scammed?
You need to act very quickly. First of all, if you have made a deposit using a credit card, you must immediately file for a chargeback. Fortunately, VISA and MasterCard allow for 540 day period in which you can file for a chargeback. This is the good news. The bad news is that if you have made a deposit using bank wire or Bitcoin, the chances of you getting your funds back are nil!
Another thing you can do is cancel your credit card if the scammers have your CVV code. Check your PC and erase the software that gives scammers access to your personal data.
Be careful, because even doing all that we recommended, your unfortunate experience with scammers may not be over. There are so-called recovery agents. One of those may approach you offering to recover your funds for a fee. Do not trust them and always check the legitimacy of the recovery agent and the agency.
Also, be aware that some “victims” of scam may post comments after the review, saying how they lost money and how a recovery agent helped them retrieve their funds. They will even put the contact info for this so-called recovery agent. Do not trust them either as it is another case of scam!