Beware! Investistic 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.
In this review, we are going to turn our attention to Investistic, a shady broker offering Forex and CFDs trading on MetaTrader4. The leverage they deliver is insanely high, which is a good reason to single them out as a risky broker. Moreover, we found many red flags that further prove our assessment. Find out what these are in the full Investistic review.
Investistic REGULATION AND SAFETY OF FUNDS
Investistic claims to be Labuan regulated, but that’s not true. Our research showed that there isn’t such a broker in the Malaysian territory’s financial register. Investistic also provides with a British office address, but they don’t have an FCA license either. Their fraudulent claims make us believe this is a scam scheme. Your funds are not safe if you deposit with Investistic because it’s an unlicensed and unregulated broker,i.e. risky for traders and investors.
Avoid them and see the regulated EU brokers and the British brokers we recommend by following the links provided. The European markets are strictly controlled and safe for traders and investors due to the complex customer protections embedded in the regulatory framework there. Most importantly, though, there are money protection schemes laid down to protect traders and investors’ money in case of bankruptcy or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR, while the British guarantees are up to 85 000 GBP per person. Consider these facts when choosing a broker.
Investistic TRADING SOFTWARE
Investistic provides traders with MetaTrader4, by far one of the best Forex trading software out there. The platform is delivered by Utrada Tech, a shady company we found not much information about. However, they also claim to be Labuan regulated, but it’s not true either. Beware!
The spreads are starting from 0.8 pips, but that applies to the top tier accounts only. The standard account comes with 1.3 pips or more, depending on the currency pair. The Investistic’s Buy/Sell difference seems favourable and reduces trading costs, but you shouldn’t shortlist it as it’s a potential scam, as already explained. Follow the links in the review to find a better partner.
Speaking of platforms, see the MetaTrader4 brokers and MetaTrader5 brokers we recommend. MT is an advanced trading software providing sophisticated trading tools such as Expert Advisors, Algo trading and plenty of complex indicators. They also created a marketplace where you can find more than 10 000 apps and third-party developed trading solutions.
The maximum leverage possible is 1:1000, which is a ludicrous level that no one should use. Such a ratio is so risky that it can cause a margin call instantly after the position opening. When clients deploy 1:1000 and open a trade, the stop out price would be a handful pips away, meaning that a tiny move of no more than 10 pips would annihilate the balance, and the position would be automatically closed. The risks involved made many financial authorities worldwide restrict the leverage in their pursuit to reduce traders’ losses.
As a result, the European, British and Australian brokers (to come in effect later in 2021) are limited to 1:30, while the Canadian brokers and the US brokers can’t provide higher levels than 1:50. The Swiss brokers aren’t restricted, but there is a 20 million francs capital requirement in Switzerland, which push scammers away.
Investistic DEPOSIT/WITHDRAW METHODS AND FEES
There is no minimum deposit requirement, and traders seemingly can fund their accounts with as much as they want. The single funding method is a Credit/Debit card, which is by far the safest deposit method because it allows filing a chargeback for an extended period of time.
However, if you have a preferred payment system, see our lists with legit Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers and Bitcoin brokers. The selected companies are strictly regulated, so it’s unlikely for traders to run into fraudsters.
Overall, Investistic is a shady broker fraudulently claiming to be a regulated broker. That’s an argument enough to stay safe and avoid this controversial enterprise.
HOW DOES THE SCAM WORK
New types of investment scams come about literally every day. However, most of the new schemes represent a modification of common fraud. These are not typical for the local markets but very similar from country to country.
Nowadays, scammers most often search for victims on the Internet and social media. Classical tactics, such as cold calling, became less widespread as the Internet got prevalent. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders got reassured that the people behind the broker have an excellent track record, and they promise high returns, seamless trading and guaranteed profits. The scammers deliberately make traders believe that the Forex market isn’t risky, but the opposite is true.
What usually happens is that scammers just pocket traders and investors money letting them believe they trade in a real environment. Sooner or later, clients would ask for a withdrawal, but scammers would delay or straightforward refuse to send any money back. Whenever traders persist, the guys standing behind the fraudulent broker would usually cut the communication or even ask for additional deposits. Either way, traders are likely to lose some or all of the capital invested. The end is always the same. When fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and 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!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!