Beware! ABInvesting 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.
ABInvesting is a costly broker with an offshore license that’s offering standard CFDs (Forex, Cryptos, Stocks, Indicies and Commodities) traded on MT4, Webtrader and Mobile apps. It’s a brand related to a CySEC authorised company, but the Cyprus license is of no use in this particular case. In the following text, we are going to talk through the broker to help you make an informed choice if you are considering ABInvesting.
ABInvesting REGULATION AND SAFETY OF FUNDS
ABInvesting is licensed by the Mauritian regulator FSC, but that doesn’t make it secure actually. That being so, why don’t you see the high-rated EU brokers and British brokers first. We recommend these companies because they are proven safe and also covered by deposit insurance funds. For example, CySEC brokers’ clients can claim up to €20 000, while the guarantees in Britain are up to £85 000.
So, Mauritius FSC licenses and regulates Forex brokers, but it hasn’t got an all-encompassing legal framework for securities dealers. In fact, there aren’t many rules imposed except for the capital adequacy requirement- $25 000 to $250 000, and it depends on the case, though. FSC licensed brokers can offer as much leverage as they want, don’t have to provide negative balance protection, don’t have to segregate clients funds, and the regulator doesn’t insist on following strict internal procedures either. To put it another way, FSC can’t guarantee the clients’ safety, and that’s why the Mauritius license isn’t highly appraised. That being so, we can’t recommend ABInvesting, and we indeed believe that your funds will be at risk if you deposit, notwithstanding the FSC license obtained.
Well, ABInvesting claims that it keeps the accounts segregated, but we can’t take their word for it as they are not required to do it.
ABInvesting TRADING SOFTWARE
ABInvesting offer MetaTrader4, a Webtrader and Mobile trading apps to their clients. We accessed the desktop MT4 and the Webtrader to find that the first-mentioned is a much better choice. The Webtrader has some functionalities, but it can’t run sophisticated strategies or Expert Advisors, so we would generally recommend MT4.
However, as ABInvesting isn’t reliable, we’d like to offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists instead. We put MTs forward as the terminals in question deliver peerless advantages- reliable indicators, easy-to-use charting tools and sophisticated features such as Expert Advisors that we already mentioned.
The EUR/USD spread is more than 3 pips most of the time, so ABInvesting is a costly broker. In contrast, most of the regulated companies are offering a much more favourable EUR/USD difference of 1 pip or less on average, so it won’t be challenging to find better opportunities.
As for leverage, it’s up to 1:500– a risky ratio that can cause a total loss in a single trade if not carefully used. Actually, leverage is restricted in many jurisdictions only because of the massive risks involved. Namely, due to regulations, licensed EU, British and Australian brokers have to limit retail clients to 1:30, while Canadian brokers and US brokers to 1:50, respectively. On the other hand, Swiss brokers are trustworthy but not leverage restricted, so experienced, and risk-tolerant traders eligible to open an account in Switzerland can safely go for it.
ABInvesting DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is $250 via various funding methods, depending on the country you live in. Some of those include Credit/Debit cards, Wire Transfers, Skrill, Neteller and others. Anyway, while talking about funding, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers on top of the lists if you have a trusted payment system.
As for withdrawals and transaction fees, the broker doesn’t specify anything, and it’s seemingly possible to withdraw as much/little as you want, free of charge.
However, the handling of the inactive accounts is not free of charge. Quite the opposite, though, ABInvesting is going to drain your account up once you stop trading and fail to withdraw your funds. After only 61 days of inactivity, clients will have to pay 160 EUR or the equivalent– a totally unacceptable fee. Worse, though, the entire dormancy clause is not properly designated, and the charges are indeed constantly increasing. Well, the numbers on the screenshot below are speaking for themselves, so no further commentary is required.
The bottom line
ABInvesting is regulated, but its license isn’t trustworthy enough- yet your funds will be somewhere out of its country and most probably not segregated. The broker doesn’t have to follow many rules, so it can indeed mistreat its clients, and they won’t get the level of protection they deserve. Furthermore, ABInvesting delivers huge spreads and impose adverse inactivity fees, so it’s too costly and traders will be at a disadvantage. Those things considered, we can’t recommend ABInvesting.
