Beware! Ubuntu Invest 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.
Ubuntu Invest is a South African broker that is not actually linked in any way with the famous Linux distribution. In fact, in local languages, Ubuntu means humanity, and as a term and a kind of philosophy, Ubuntu is an integral part of the South African culture. As for the brokerage, it’s authorised by the local regulator, so it can legally offer its services in SA and many other African countries, as well. That said, let’s look at this broker in detail and find out if it’s a good option or if there are much better alternatives.
Ubuntu Invest Regulation and safety of funds
Ubuntu Invest is a brand of PIONEER INTERNATIONAL (PTY) LTD, a South African company authorised by the local regulator FSCA under license number 51420. The broker is legit, but it can operate only in South Africa and other countries that do not have local Forex regulations. Hence, the service provided by Ubuntu Invest is still illegal in many places worldwide, such as the US, EU, UK, Australia, Japan etc.
On the other hand, the South African FSCA is not a top-tier regulator, as it doesn’t implement many customer protection rules. For example, brokers licensed by the authority are not obligated to provide segregated trading accounts, so customers’ deposits are not guaranteed to be fully secured. Also, the broker is not required to provide negative balance protection, so if traders are unfortunate enough, they may end up owing money to Ubuntu Invest – certainly not the best outcome! And most importantly, FSCA does not maintain deposit insurance funds, so if things go wrong, clients of Ubuntu Invest won’t get any compensation whatsoever. Those things considered, we recommend traders be cautious and look for adequately regulated Forex companies instead. Ubuntu Invest is not the best choice.
Choosing a broker will very well depend on where you are located. For British traders, it’s always best to go for a broker licensed by the Financial Conduct Authority (FCA). In the EU, the majority of companies are regulated by CySEC in Cyprus; for Australians, you’d better look for ASIC brokers; in the US, it’s best to stick to CFTC/NFA brokers. And if you live somewhere else, where, for example, the local Forex regulations are not mandatory, it’s still recommended to trade with FX providers regulated by respectable authorities. They provide segregated accounts, negative balance protection and, depending on the country, deposit insurance funds may be available. For example, clients of CySEC brokers can claim up to €20 000, while in the UK, the coverage is up to £85 000 per person.
Ubuntu Invest Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|Ubuntu Invest platform||50+ indicators||✅||✅||Android and iOS|
|MT4||30+ indicators||✅||✅||Android and iOS|
|MT5||50+ indicators||✅||✅||Android and iOS|
|cTrader||40+ indicators||✅||✅||Android and iOS|
Ubuntu Invest offers excellent trading software – the industry leader MT5, currently the number one platform for retail Forex. Still, Ubuntu Invest remains a broker that is not tightly regulated, so the excellent platform does not change anything, as most of the leading Forex companies also offer the platform.
Speaking of MetaTrader, MT 4 and MT 5 are the best options to choose from. MT5 is the newest and is considered the better version, but even if you trade with MT4, you’ll still have access to automated trading, custom indicators and plenty of analytical tools.
Ubuntu Invest Trading instruments
Ubuntu Invest offers Forex, Indices, Shares and Commodities with 241 trading pairs in total, most of which are FX. Interestingly, the broker does not provide cryptocurrencies, which are still considered one of the most popular asset classes among traders. In any case, the number of instruments, 241 altogether, is not impressive, as other brokers can easily offer thousands of pairs.
Ubuntu Invest Spreads and cost of trading
|Spread EURUSD||1.1 pips||1.7||1||1.1|
|Spread GBPUSD||1.5 pips||1.3||1.2||1.4|
|Spread USDJPY||1.4 pips||1.3||1.2||1.4|
The cost of trading is not too bad – 1.1 pip for EUR/USD, meaning it’s not very expensive to trade with Ubuntu Invest. That said, however, we will once again remind you that the broker does not offer anything better than the rest of the adequately regulated companies licensed by reputable authorities like FCA or Cysec, for example.
Ubuntu Invest Maximum leverage
|Ubuntu Invest broker||500:1||❌||❌||❌||❌|
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
The maximum leverage is 500:1 with the Ubuntu Light trading account, a risky ratio unsuitable for all clients. However, here we should express disapproval that Ubuntu Invest fails to specify what’s the leverage for different asset classes. If 500:1 applies to Stocks or Gold, any position you open may result in an instant-quick margin call. Beware!
Ubuntu Invest Deposit and withdrawal methods
|Deposit time||Withdrawal time||Price|
|Credit card||Instant||24 hours||Free|
|CallPay (South Africa)||Instant||24 hours||Free|
|PayFast (South Africa)||Instant||24 hours||Free|
|Ozow (South Africa)||Instant||24 hours||Free|
|BudPay (Nigeria)||24 hours||24+ hours||Free|
Ubuntu Invest accepts deposits through the payment methods seen in the table above. They apparently target African clients, which is a plus for this review, as their service is still considered illegal in many other countries.
Ubuntu Invest Minimum deposit
The minimum deposit with Ubuntu Invest is 1$ via Credit/Debit cards. The low requirement is a positive feature, but it’s still recommended to see other brokers, as well. Also, note that while testing their system, we could deposit money without KYC – this is a major red flag!
Ubuntu Invest Withdrawal requirements
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Ubuntu Invest / offshore brokers||20 000x||Free||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
The withdrawal conditions are generally good, but things will get ugly if you apply for a bonus. In such a case, you cannot withdraw any money unless you trade $20 000 for each $1 bonus. This is too much! See the screenshot below for more information.