Beware! Interacinvestor is an offshore broker! Your investment may be at risk.

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While this website claims to represent an established and award winning forex and CFD broker, this could not be further from the truth. Interacinvestor is actually a new reincarnation of a familiar fraud. This anonymous website has neither the legal authorisation nor the technical capacity to offer financial services and products. Interacinvestor is only designed to scam naive people out of their money.

INTERACINVESTOR REGULATION AND SAFETY OF FUNDS

The biggest red flag is that it is a complete mystery who is behind Interacinvestor. Nowhere is the name of the owning company mentioned, which is completely unacceptable for any legitimate business, let alone a broker who wants you to trust it with your money.

In the contact menu, the address is listed only as “UK”:

At the same time, the logo of the Financial Services Authority of St. Vincent and the Grenadines (SVGFSA) can be seen in the homepage.

These two jurisdictions could not be further apart in terms of regulations for brokers. The UK has some of the most stringent rules in place, while  St. Vincent and the Grenadines has no broker regulations at all. But we found nothing on “Interacinvestor” in either the UK Financial Conduct Authority (FCA) database or the SVGFSA records.

A link to the Terms and Conditions can only be found on the new account registration form. This link goes to a completely different website – reserveex.com. This is another fake broker that we have already reviewed. The two websites are almost identical, and are obviously the work of the same scammers.

These Terms and Conditions also do not name a legal entity, but claim that the laws of Seychelles – another unregulated offshore zone – apply. Overall, it’s not clear who we’re dealing with, but there’s no room for doubt that this someone doesn’t hold a broker’s license.

If you want to trade on financial markets without being scammed, you can turn to some of the legitimate brokers that actually operate from established financial hubs like the UK. These brokers have to meet stringent requirements for financial stability and transparency of operations imposed by the Financial Conduct Authority. They must provide clients with negative balance protection and to participate in a guarantee fund that covers up to GBP 85,000 of a client’s investment should the broker go into insolvency. These brokers are also required to keep their clients’ money segregated from their own operating funds in separate bank accounts.

INTERACINVESTOR TRADING SOFTWARE

Interacinvestor claims to offer the most widely used trading platform in the industry, MetaTrader 5 (MT5). However, after registering an account, we do not get access to an installation file, nor do we get credentials to log into a trading server. In the client area we find only a simple chart with current asset prices, lacking any trading functionality.

You could always use the services of a regulated broker, the vast majority of which offer clients MT5 or the still very popular MT4. This will enable you to use the advanced features of these platforms without fear of being scammed. These platforms are preferred by the majority of brokers around the world because of their powerful automated trading capabilities, including Expert Advisor bots and customized scripts for backtesting trading strategies.

INTERACINVESTOR TRADING CONDITIONS

Interacinvestor claims to offer trading in all major classes of financial instruments, but provides no information about the terms of that trading. Given the lack of license and software, even if such information were available, it would have no real meaning.

The website describes five types of trading accounts but does not specify basic parameters such as spreads, commissions, tradable instruments and order execution method. Only leverage is specified, ranging between 1:100 and 1:600. This is further evidence that the Interacinvestor could not be UK based.

The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders.

The Terms and Conditions mention bonus programs. Offering bonuses and promotions is a practice prohibited by all leading regulators. The terms of these bonuses are not described anywhere. This is worrying because scammers often use supposedly generous bonuses to tie withdrawals to huge fees or prohibitive requirements.

According to the account descriptions, the minimum deposit is 500 USD, but according to the FAQ section, the amount is 250 USD. In any case, it would be wiser to use the services of a licensed broker, many of which allow you to start trading with a minimum deposit of 100 USD or even less.

INTERACINVESTOR DEPOSIT/WITHDRAW METHODS AND FEES

At the time of writing this review, there are no active options in the deposit menu of the Interacinvestor. In the withdrawal menu the options are credit card, wire transfer or Bitcoin.

Experience with such scammers has shown that they almost exclusively use cryptocurrencies. The reason is that these transactions allow for a high degree of anonymity while not allowing for refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like PayPal, Sofort or Skrill.

The Terms and Conditions mention deposit and withdrawal fees and commissions, but the amount of these fees is not specified.

HOW DOES THE SCAM WORK

Unfortunately, the internet is full of scammers. In the age of cryptocurrencies, many of them pretend to be brokers and take advantage of people’s desire to get rich easily through financial instruments they don’t really understand.

Fake brokerage sites lure you in with promises to take on all the difficult and confusing aspects of investing for you. If you make contact with such sites, they will first convince you to make a small, “risk-free” investment of a few hundred dollars. Experienced scammers will then begin to persuade you to “invest” more and more money, and will even deceive you into believing that your initial investment is generating incredible profits.

But you will never see those profits or the money you deposited. These scammers hide behind fake names and offshore shell companies that are not subject to oversight and regulations like regulated brokers. They use cryptocurrencies or other shady payment methods that make refunding money difficult or often impossible. The terms and conditions of these sites are riddled with pitfalls that block withdrawals with impossible-to-fulfill conditions for minimum traded volume and extremely high fees reaching 10, 20 or more percent of the amount.

WHAT TO DO WHEN SCAMMED

If you find yourself in such a situation, you should be very careful not to fall into the clutches of other fraudsters while trying to recover your money. Offers from people on the internet who promise to get you your money back from scammers for an upfront fee are also one hundred percent scammers.

If you used a credit or debit card for the transactions to the scammers, there is some chance you can get your money back by requesting a chargeback. Visa and MasterCard allow this to be done within 540 days. But such a claim can be challenged if you have provided the scammers with documents such as a copy of your ID and proof of address.

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