Beware! Indexstockpro 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.
Indexstockpro tries to convince us that it is a legitimate broker that gives its clients the freedom to trade CFDs, stocks and cryptocurrency assets “with zero risks”. But even a minimal scrutiny reveals that this anonymous website offers nothing but risk. This is just another online scam posing as a forex broker. Let’s take a detailed look at why it’s in your best interest to stay away from Indexstockpro.
INDEXSTOCKPRO REGULATION AND SAFETY OF FUNDS
Legitimate forex brokers provide clear and detailed information about the legal entity that owns and operates them, where it is based, what licences it has and which regulators oversee its activities. Genuine financial services providers also provide access to a comprehensive set of legal documentation. Lack of such details or improper presentation of them are always a red flag that we are probably dealing with a scam.
Indexstockpro does not disclose which company owns and operates this website, which is completely unacceptable for any legitimate business. The only document available is the Terms and Conditions, which also make no mention of a legal entity name or applicable jurisdiction.
The only identifying information is an incomplete address in the United States. As this is a jurisdiction with particularly strict requirements for financial service providers, it is quite impossible that this anonymous website is indeed a legitimate broker operating there.
To operate as a forex broker in the United States, a company must be registered with the Commodity Futures Trading Commission (CFTC) and to be a member of the National Futures Association (NFA). As might be expected, there is no sign of “Indexstockpro” on the NFA registry:
Under no circumstances should you trust your money to such anonymous websites full of false and contradictory information. Instead, you can turn to one of the many companies that really work under the supervision of respected regulatory bodies like Cyprus Securities and Exchange Commission (CySEC) or Financial Conduct Authority (FCA) in the UK.
As their customer you will enjoy a number of guarantees including negative balance protection and guarantee for your funds if the broker goes bankrupt, which goes up to EUR 20,000 in EU and 85,000 GBP in the UK. Regulations in the UK and EU include some important measures designed to improve investor protection and promote market integrity and transparency, such as transaction reporting. Regulated brokers are also required to segregate their operational funds from the client’s money.
INDEXSTOCKPRO TRADING SOFTWARE
On its website, Indexstockpro promises one of the most widely used trading platforms in the industry, MetaTrader 4 (MT4). But after registering an account, we only get access to a demo version of the web version of the platform. The Indexstockpro does not provide login credentials to its own trading server. Obviously, the IMI does not have functioning trading software, just as it does not have legal authorization to provide brokerage services.
If you use the services of a duly licensed broker, you will have the opportunity to use advanced software, including the full-fledged desktop version of MT4 or the newer MT5. These platforms have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
INDEXSTOCKPRO TRADING CONDITIONS
Indexstockpro is obviously a fake broker, so it doesn’t matter what trading conditions it promises. But the information on the website provides us with further evidence that this is not and could not be a legitimate investment intermediary.
Firstly, the Indexstockpro does not provide detailed and clear information on the terms of trade. On the home page we see one set of account types and on the dashboard we see a completely different set. Such inconsistencies are typical of low-effort scams like the Indexstockpro.
In both cases, the descriptions of the account types do not include information about basic trading parameters such as spreads and commissions. Instead, it is alleged that Indexstockpro offers bonuses, a practice that is prohibited to licensed brokers.
Elsewhere on the website it is stated that Indexstockpro offers “generous leverage up to 1:500”. Regulated brokers do not offer such levels to retail traders as trading with high leverage carries risks of sudden and excessive losses. A maximum leverage of 1:30 is allowed in the European Union and the United Kingdom and 1:50 in the United States.
On the website we find three different versions of the minimum deposit amount – 500 USD, 1000 USD and 2000 USD. By comparison, many legitimate brokers allow you to start trading with amounts as low as 50 USD, 10 USD or even less.
INDEXSTOCKPRO DEPOSIT/WITHDRAW METHODS AND FEES
Indexstockpro makes it clear that it only allows deposits and withdrawals via cryptocurrencies. Fraudsters often steer their potential victims to cryptocurrency transactions because they do not allow the defrauded person to request a refund.
While there are some legitimate brokers that accept digital currencies like Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Skrill, PayPal, Neteller or GiroPay.
Indexstockpro does not provide information on fees and withdrawal conditions. But it’s highly unlikely that you’ll be able to get back the money you made the mistake of trusting to scammers like Indexstockpro.
HOW DOES THE SCAM WORK
Trading in financial instruments is a risky business even for experienced investors using the services of reliable brokers. For newcomers, there is also the risk of being deceived by the many scam websites posing as brokerages. These websites are operated by skilled and cunning scammers who lure you with promises of easy profits. Usually these scammers promise to take care of all the bits and pieces of investment for you, but many even use real trading platforms to fool you that your money is really being invested. After investing an initial low amount, they will convince you that you are already making incredible profits and urge you to invest more.
But your money is not invested and you will never see the promised returns. When you ask to withdraw even a portion of your money, you will be surprised by impossible to meet minimum trading volume requirements and hidden fees that amount to tens of percentages of your funds. Scammers hide behind fake names and offshore companies that are uncontrolled and unregulated, so it will be impossible to hold them accountable.
WHAT TO DO WHEN SCAMMED
If you find yourself in a similar situation, you can request a chargeback. However, this option is only possible if you have used a credit or debit card for the transactions. Visa and MasterCard allow this to be done within 540 days. But if you have provided the scammers with proof of identity, such as an ID or proof of address, these claims can be disputed. Bank wire transfer or cryptocurrency transactions are non-refundable.
In any case, you should inform the relevant authorities in your country about the activities of the scammers and warn other potential victims online. You should not trust offers to return your money for an upfront fee. This is also a known scam and all testimonials from satisfied customers are fake.
