|Website||Rating||Popularity||Min Deposit||Regulator||EUR/USD spread|
InstaForex is a Russian-based brokerage that has been around for a over a decade. It used to operate only though offshore companies, yet since the year 2015 it has started offering trading services under its CySEC regulated entity too. However, did this brokerage become more trusted since it got regulated and can it be trusted at all? Let’s see what we could find.
Quick InstaForex analysis
If you visit InstaForex website today, you are very likely to think that this brokerage is a trusted one. Why? Because it tries to get associated with the powerful brands.
The homepage of InstaForex hosts a picture of a Lamborghini Huracan with its logos and right in the website’s menu you can see that the broker sponsors the proud 4th position of the English Premier League – Liverpool F.C.
Besides that, InstaForex is very proud to tell about its sponsorship of different athletes, racing teams and god knows who on its homepage. This is a bit alarming as you actually expect to learn more about the brokerage and its offer rather than see how the broker spends its marketing budgets. Our rule of thumb here is quite simple: if a company wants to evoke lots of trust by associating with big brands and celebrities – it cannot be trusted.
InstaForex website also needs quite some improvement. While it has been lately a negative tendency for the FX brokers to provide such minimal websites that they can hardly be of any use, InstaForex is a great example of how a broker can overkill with the data.
The broker seems to provide so many different things that it makes the overall user experience quite negative. We felt lost, to say the least.
Let’s take a look at what InstaForex has to get to offer from the trading perspective.
The first thing that strikes us is that the broker only supports EUR and USD deposits. This will be quite inconvenient for some of the European traders as they are more likely to deposit in their local currencies. Needless to say, the British traders will not like it either.
The standard account seems to offer some huge spreads. It has been a while since we see minimum spreads set at 3 pips. But don’t be fooled by 0 spreads on the Eurica accounts, the fees (aka commissions) are identical to the spreads.
Uniquely, this broker offers a 5% interest rate for the active traders and a 2% rate for inactive ones. This is another alarming point as InstaForex does not hold a banking license and it is questionable how it can offer interest rates on the client deposits at all. It is also quite shady as there is no European bank that will give such an interest rate to its clients.
InstaForex offers MetaTrader 4 in all of its forms: desktop app for Windows, web trading platform, iPhone, iPad and Android platforms. It also offers it down PAMM account service.
We have not conducted any due diligence of the PAMM accounts and the trade leaders, so we cannot be sure how reliable the profits and gains are.
Unlike other brokers, InstaForex has got lots of bonus promotions available to attract traders and their deposits.
Even though the bonus sizes may seem attractive, one you dig deeper you see that things are not as good as they seem. For example, 100% LFC Bonus cannot be withdrawn at all or used for binary trading or PAMM accounts. Essnetially, this is a not a bonus but a multiplier for the leverage.
A 55% bonus can be withdrawn, however there is a condition. A trader has to achieve a minimum of x6 InstaLots per each of the dollar of the bonus. Hence, if you deposit $1,000 and are given a $550 bonus, you will have to complete 3300 InstaLots to withdraw. Knowing that 10 InstaLots are equal to 1 standard Forex lot, we can calculate that one would need to complete 330 lots to withdraw $550 bonus. The spread on 330 lots will be anywhere between $9900 and $23,100. Great deal, isn’t it?
Once you start googling various reviews that are left by the humans, you will be amazed how many people have gotten in trouble with this broker.
While some of the reviews can be doubted, it seems logical that the broker tries to put itself around the trusted brands and people simply to scam the traders.
The final thought
Generally, there is nothing good about InstaForex. Some things are not necessarily bad, but there is a huge lack of advantages. The broker does not seem to have good reputation and it has been operating in a grey area for years. Even though it is licensed now, it is a doubt whether European traders will be opening accounts at the regulated company. The trading conditions are quite bad and the software offered is just ok. All of the bonus promotions are not designed to incentify the trader, but simply to lure him into depositing more. We strongly recommend to choose a trusted broker instead.