Beware! INNO Trade 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.
INNO Trade is an especially dangerous type of scam firm. Not only that it isn’t regulated in any way, but it also has been exposed as an unreliable firm by the local regulator of Spain. In fact there is an official warning against INNO Trade and the company that operates it. So clearly this broker isn’t the best choice at least to say – especially if you value the safety of your funds.
But even if we put its regulation aside, the trading conditions that INNO Trade offers aren’t favorable either. There’s a very costly spread of 3 pips, as well as a highly risky leverage of 1:200. All in all, it would be a horrible idea to put your money on the line using the services of this broker. In the following review we have tried to explain all the drawbacks of INNO Trade and why we think it’s an outright scam.
Regulation and safety of funds
Let’s start straight from the beginning – INNO Trade claims to be owned and operated by a company named Lissome Group LLC with a registered address in Kingstown, St. Vincent and the Grenadines. The moment we read its address we knew that there’s something wrong with this broker. The reason is simple – this destination is popular as a scam heaven as it doesn’t require brokers to be licensed in order to operate on the forex market. In other words brokers there are not obligated to comply with any rules and aren’t supervised by any jurisdiction. This gives them exceptional freedom but also makes them quite dangerous for potential investors. For further information on the topic you can check the website of the Financial Services Commission (FSA) of St. Vincent and the Grenadines. This is the warning that pops up the moment you open its site, take a look:
As you see FSA clearly states that forex brokerage activities are not licensed in this country. But wait for it – there’s more! It turned out that there’s an official warning set by the Spanish National Securities Market Commission (CNMV) which states that INNO Trade as well as the company that runs it are not authorized to provide investment services. See the whole notice down below:
At this point INNO Trade’s reputation is already in tatters. It would be very unwise to invest with a company that not only isn’t regulated but also has been blacklisted by a financial authority like CNMV. Keep in mind that you won’t be able to get any client protection in case you get deceived.
On the contrary, investing with a regulated broker guarantees the safety of your funds in many ways. First of all, licensed brokers in the EU and the UK for example must hold at least 730 000 EUR of minimum capital as a proof of their financial stability. And even though an unfortunate event like bankruptcy is highly improbable in these cases, legitimate brokers in the UK and the EU make one more step ahead in order to protect your funds if this really happens. A client can be compensated for up to 85 000 GBP (for the UK) or up to 20 000 EUR for most of the countries in the EU.
INNO Trade claims to offer a WebTrader with “innovative trading tools” and user-friendly interface.
We registered straight away but weren’t impressed by what we saw – at least to say. There’s a simple web-based platform by Trading View, take a look at it:
This software isn’t bad to be honest but certainly isn’t “innovative”. You can just use custom indicators and tools but nothing more sophisticated.
MT4 and MT5 are appropriate even for both advanced traders and beginners. You can be assured that the safety of your funds and personal information is granted as all transactions are encrypted as well as your IP address.
You can also choose between a wide range of educational resources, forex news and technical analysis tools. Most of the customers consider the trading bots to be the best part however. These bots, also called Expert Advisors, analyze the forex market in a search of certain conditions and then perform trading operations once they find them.
MT5 and MT4 can be easily downloaded on PCs, smartphones and tablets and have regular updates. Unfortunately, since Apple removed both MetaTrader 4 and 5 from its AppStore, these platforms can’t be downloaded any more from iPhone/ iPad users. All of you that have already installed the apps can continue using them, but without the above-mentioned updates. On the contrary you can still download MT4 and MT5 from Google Play Store.
INNO Trade claims to offer 6 types of accounts – Novice, Basic, Avant, Independent, Advanced and Macro. You can see some more details about the first three of them down below:
The Novice requires a minimum deposit of 250 USD, which is a pretty standard amount for the sector. Most reputable brokers tend to ask for the same sum or even less – in order to open a micro account you need around 10 USD.
The leverage that this broker offers is 1:200 for its Novice account but the amount can get even higher with the rest of the accounts – the maximum leverage is 1:500. All of these volumes are extremely tricky and aren’t recommended for retail traders. What’s more the leverage is limited in most of the countries – 1:30 for the EU and the UK and 1;50 in the US. This measure aims exactly to minimize the potential risk of failure. If you still want to trade with higher leverage we suggest looking at some of the offshore subsidiaries of legitimate forex brokers.
Now, things get a little complicated when it comes to the spread that INNO Trade offers. On the chart above you can see a spread of 0.22 pips for the Novice account. However after we opened the trading platform there was a spread of 3 pips for EURUSD, which is too high and will most certainly be very costly. Remember that you need tight spreads below 2 pips, as they’ll come with lower trading costs. In the case of INNO Trade this broker clearly lies about the spread it offers, so don’t trust any of its claims.
Deposit/Withdrawal methods and fees
On its website INNO Trade claims to accept payment methods like Visa, Mastercard, Maestro and wire transfer. After we registered the options were all focused on crypto transactions. Take a look:
Of course there is a credit/debit card alternative, but from our experience with scammers we suspect that it might not work properly.
As for the crypto payment, this broker suggests using crypto coins like Bitcoin, Ethereum and Tether. However, remember that these transactions are completely irreversible and anonymous so better refrain from using them in general.
All in all, we don’t recommend investing with this broker no matter what payment methods it accepts. Otherwise you simply risk being left without two nickels to rub together.
How does the scam work
Be very careful to whom you provide your personal information like email or phone number. The moment scammers have your number they will start calling you in an attempt to make you invest right away.
They will most certainly assure you that trading with them is risk-free, which is highly doubtful at least to say. Also be prepared to hear that you can get a fast and incredibly high return on investment – this is also a shameless lie of course. Scammers tend to sweet-talk traders into making a deposit and then vanish like thin air.
Before that however they might try to manipulate their trading software so it looks as if your money is being invested. They might also fool you into believing that your results are very profitable. This is done with one specific purpose – to make you invest even more before you find out that everything is a lie.
Expect all kinds of hidden fees the moment you try to withdraw even a cent and what is the worst part – to find out that a withdrawal is declined no matter what you do.
What to do when scammed
If you have been scammed, the first thing you can do is to turn to the bank that issued your credit or debit card and ask for a chargeback. If you have paid with your Visa/ Mastercard, a chargeback is eligible within 540 days.
Wire transfers are more difficult to return, and the best thing you can do in this situation is to change your online banking username and password as soon as possible.
Using payment methods like Neteller, Paypal or Skrill also gives you the opportunity to open a dispute in case of online scam.
Unfortunately crypto transactions are irreversible as we already stated and therefore your money can not be returned. All in all we advise you not to trust brokers that use only crypto coins such as Bitcoin or Ethereum.
Last but not least, certainly don’t trust people on the internet offering to return your funds only after you pay a certain fee. They might also be scammers so don’t risk losing more money than you already have!