50 Words on – Why you can go Broke with InstaForex?

A few years back, InstaForex gained a rather bad reputation and for the last years they’ve been trying to polish it up. The results have been mixed because it still seems like a bad vibe is surrounding this broker. Forex Peace Army, probably the most prolific online forum that tries to fight Forex scams, strongly advises against opening an account with this brokerage, following a scam case against InstaForex [1]. Furthermore, many people still complain a lot about Instaforex’s practices and at least one of the positive reviews has been proven to be submitted by InstaForex employees: ZackFx, allegedly from Madrid, Spain (actually from Peru according to FPA’s moderation team) writes a very positive comment but he/she used an instaforex.com e-mail address (according to FPA’s moderation team) to register his/her forum account [1]. Also, there have been accusations of profit canceling or “corrections” made to the accounts of clients.

 

How Can You Avoid Going Broke With InstaForex

• Take Forex Peace Army’s advice and don’t open an account. Instaforex is blacklisted by the FPA and keep in mind that InstaForex and FPA had an advertising contract which FPA decided to terminate. I can only assume they clearly considered InstaForex a scam broker and didn’t want their names tainted.

• Read clause 5.12 from InstaForex Terms and Conditions. It states that profits that exceed 10% of your account balance can be “corrected” if they were made as a result of a difference between an instrument’s price at market close and at market open or connected with a news release. Well, news comes out all the time so they could always say that my gain was connected to news. Weekly gaps (I assume that’s what they are referring to) don’t happen so often, but still, it’s a normal market occurrence so if I make a profit that exceeds 10% of my account, why can’t I keep it? It’s not like I cheated in any way.

• Do not accept a bonus unless you read the Terms and Conditions of that bonus. Make sure you understand them and ask for written explanations if you don’t.

• Do not deposit a high amount until you are certain you are dealing with a respectable, professional brokerage. Although the Internet is full of negative reviews about InstaForex, we have no way of knowing for sure which are legit or not and that’s why we recommend testing them on your own. However, a small sum should be used in our opinion.

• Make a few withdrawal requests to test their responsiveness but keep in mind that a shady broker would process very quickly a small withdrawal while a large withdrawal might be dragged on for longer.

• Do not trade during news releases. This is recommended with all brokers, but especially with InstaForex as they clearly state they can “correct” your winnings.

 

 

Editor’s Note – Would I Trade with InstaForex? You are Kidding, Right?

We have so many choices when it comes to brokers and we are not limited to companies from the country we reside in. So my mind cannot comprehend why someone would trade with a company that says they will cancel your profits if they exceed a certain percentage and if they are connected with news. Let’s leave aside all the talk, negative comments and user reviews because those could be faked. Ok, let’s imagine that nothing has been said about InstaForex online and let’s focus on the facts: InstaForex warns their clients in a public document that profits can be canceled for unclear reasons – and I use the word “unclear” because they just say “news” with no other details. For that fact alone, I choose not to invest with InstaForex.

 

References

1. InstaForex on FPA