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Instaforex, are they honest and reliable?

  • #41
  • Dec 22, 2011 12:54am Dec 22, 2011 12:54am
Quoting ybfjax
- instaforex is regulated in Russia, and I was referring to Thailand (and other SE Asia countries).
Instaforex is not regulated in Russia or anywhere else.

Quoting ybfjax
- Your link did not specify that forex broker (regulated in Australia) could not take cash deposits
Cash deposits are a violation of AML/CTF plus this issue is dealt with in more detail in other Australian law. AML/CTF laws are similar across the world though.

Quoting ybfjax
- Both VantageFX and GoMarkets accept local cash deposits in Australia (maybe that has changed).
If they do, they will be closed down. I couldn't see any evidence of this on their websites.

Quoting ybfjax
Like I said earlier, not all countries are credit based, and still deal heavily in cash. This does not make them money launderers.
I didn't say cash societies are laundering money, however the risk of and prevalence of ML in these countries is extremely high. I've spent most of the last 10 years doing business in such countries in the Middle East and Asia so I know this to be a fact.

Sorry to harp on a point but I have spent the last few years neck deep in legislations, laws, and red tape in relation to setting up a broker in a regulated environment and it irks me somewhat to see companies like Instaforex and their ilk behaving in such a cavalier fashion without any regard to the consequences. Regulation is a double edged sword. It gets in the way of doing business easily, keeps lawyers happy with new suits and fast cars, and is a general pain in the ass to deal with, but the upside is that you as a trader are protected better from shonky operators.
  • #42
  • Dec 22, 2011 6:37am Dec 22, 2011 6:37am
I have been trading with instaforex for a year now, have been spending months on demo account and finally had the guts to trade with real money.

Okay to clarify, im a new trader from malaysia, just traded with real money for barely a month? and have not been really profitable (just a little background).

ive been researching on instaforex and i get a lot of negativity, but i personally thought that this broker is pretty fine in terms of depositing? but a highly worrying issue is the executions, it takes time to really execute and sometimes when the internet connection isnt as good, delays always happen

I have never tried using another broker but you can try with this broker using a small amount of money? im earning and am planning to withdraw some money out just to test out if this broker is reliable.

Ill update when i withdraw!
  • #43
  • Dec 25, 2011 6:41am Dec 25, 2011 6:41am
Look guys how can a broker that uses PM spam be reliable? When I got this message (see the attachment) I came to a conclusion that I'll never open an account there.
Attached Image (click to enlarge)
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  • #44
  • Dec 25, 2011 10:44am Dec 25, 2011 10:44am
That actually sounds like an Introducing broker trying to solicit signups, not Instaforex itself.

That said, Instaforex is still one hell of a crappy broker and I would never even dream of letting them handle any of my money.
  • #45
  • Dec 26, 2011 12:37am Dec 26, 2011 12:37am
Quoting jafar00
Instaforex is not regulated in Russia or anywhere else.
http://support.instaforex.com/en/ind...d_in_Russia%3F

Technically, retail forex trading is not regulated in Russia. The semi-regulation that they claim to have is weak.

The only regulation that I see as worthwhile is segretated client funds. Just about everything else is worthless.
Quote
Cash deposits are a violation of AML/CTF plus this issue is dealt with in more detail in other Australian law. AML/CTF laws are similar across the world though.
I'm sure you can point us to specific statute that bans cash deposits for retail foreign exchange trading in Australia, Thailand. That would seem silly, seeing that retail foreign exchange is in fact an over the counter cash business. You may be required to have a money exchanger license or something similar, depending on the country. As the consumer, you wise up and deal with reputable exchanger/dealer and you should be fine.
Quote
If they do, they will be closed down. I couldn't see any evidence of this on their websites.
http://www.gomarketsaus.com/existing.../fund-account/
http://www.vantagefx.com/get-trading/deposit/

GoMarkets clearly has cash deposits listed. Vantage used to. Looks like they changed that when they introduced Global Collect. Not sure if global collect only accepts bank transfer, or would have other methods of collecting payment, such as cash deposit, 7-11, etc.

Quote
I didn't say cash societies are laundering money, however the risk of and prevalence of ML in these countries is extremely high. I've spent most of the last 10 years doing business in such countries in the Middle East and Asia so I know this to be a fact.

Sorry to harp on a point but I have spent the last few years neck deep in legislations, laws, and red tape in relation to setting up a broker in a regulated environment and it irks me somewhat to see companies like Instaforex and their ilk behaving in such a cavalier fashion without any regard...

Well, how well did the regulation stand up again MF Global, Leman Brothers et. al? It's up to the trader. It usually takes someone like Bernie Madoff to remind people that you (not your public servants) are responsible for your trading decisions. A legit company going under is actually worse than a scammer, because people really put their faith in the legit ones, seeing as the statutes/regulators supported their operations.

I do miss being able to call up a US credit card company and say "this charge isn't correct"and I get my money back almost instantly. I have a situation with thai debit card now and it's taking almost two weeks to get the voided transaction refunded (and I have the void receipts and large reputable company in shopping mall).

You are right though. It is a tradeoff between being able to do what you want and serve your clients needs and client being protected. From my point of view, InstaForex has done a lot to at least appear reputable. Certain things I enjoy the protections, other things I like flexibility.
Measure trends automatically with zero lag
  • #46
  • Dec 26, 2011 2:29am Dec 26, 2011 2:29am
Quoting ybfjax
http://support.instaforex.com/en/ind...d_in_Russia%3F

Technically, retail forex trading is not regulated in Russia. The semi-regulation that they claim to have is weak.

The only regulation that I see as worthwhile is segretated client funds. Just about everything else is worthless.
I'm sure you can point us to specific statute that bans cash deposits for retail foreign exchange trading in Australia, Thailand. That...
"Well, how well did the regulation stand up again MF Global,............"

regulation can not help as we see........

(forex is otc market)

segregation of acct can not help either..........broker can touch client's funds

(they are on one corporate acct........... let it be internally segregated ..........but on one!)

my opinion that only s-e-p-a-r-a-t-i-o-n of accts in a bank

can protect a client when it's money is not accessible for a broker

i know only one broker of this sort

does anybody know any other?
  • #47
  • Edited 7:09am Dec 26, 2011 6:32am | Edited 7:09am
Choosing a broker is like choosing a handphone. Let's say you decided to buy a new android phone, given the choice of Samsung, Sony, Motorola, HTC and ZTE, which one you will not choose if they all sell at the same price? Which one most likely will not gain your trust on its quality?

The same concept can be applied to broker too. Why choose those brokers that is not reputable and suspicious in scam activity? Why take such kind of unnecessary risk while there are plenty of better choices out there. There is completely no reason (beside ignorance) to choose those 3rd class brokers unless they can offer something special that cannot be offered by reputable brokers. For instance, <0.5pips of average spread, or average <10ms of execution speed, or late price feed compared to others, etc. Yes I too agree that even broker that regulated by US/UK could engage in scam activity but what is the chances of that happen? Compare to other brokers that regulated by dont know where, which one carries the higher risk?

Sometimes i just cant understand why people are smart in choosing a new handphone but completely ignorance in choosing a new broker. Some even give their money and trust a broker that regulated by a country where they cant even point it on the map. Of course you can still choose them but just stop cry daddy when they forfeit all your profits with lame excuse like someone here who lost >EUR20k of profit with liteforex a few months ago.
  • #48
  • Dec 27, 2011 6:02pm Dec 27, 2011 6:02pm
Quoting ybfjax
http://support.instaforex.com/en/ind...d_in_Russia%3F

Technically, retail forex trading is not regulated in Russia. The semi-regulation that they claim to have is weak.
Well, if you were talking about opening a stock trading account with InstaTrade Russia, you would be right.

When you open an account with Instaforex, your account is opened with Instaforex BVI. BVI is not under the jurisdiction of Russia even if Russia regulated forex at all. As for Instaforex's claim of being regulated because of a loose connection to another company in the group is laughable. It's like saying that you have a valid driver's license because your Uncle who lives overseas has one!

Quoting ybfjax
The only regulation that I see as worthwhile is segretated client funds. Just about everything else is worthless.
I've been working with ASIC regulations. Segregated client funds are one of the protections as are random audits of the company as well as scheduled audits. I believe ASIC to be unique in the audit requirements. In addition an AFSL holder must have adjusted liquid surplus funds (ASLF) of $50k plus 5% of adjusted liabilities between $1m and $100m plus 0.5% of adjusted liabilities exceeding $100m in client deposits.

Quoting ybfjax
I'm sure you can point us to specific statute that bans cash deposits for retail foreign exchange trading in Australia,
Actually I can't. I pay a lawyer to read that stuff for me.

Quoting ybfjax
GoMarkets clearly has cash deposits listed.
Going into a bank and making a deposit to the broker's account is not the same as going to an IB and handing cash over. A bank is licensed to take cash deposits. I know of no Australian broker that can legally take a cash deposit across the counter. Unless of course they become a bank in their own right.

Quoting ybfjax
Well, how well did the regulation stand up again MF Global, Leman Brothers et. al?
MF Global was grossly mismanaged. They traded with client funds which is a big NONO under ASIC guidelines. I'm unsure if it is the same with the CFTC.

Quoting ybfjax
From my point of view, InstaForex has done a lot to at least appear reputable.
Is stretching the truth as described above reputable to you?
  • #49
  • Dec 27, 2011 6:03pm Dec 27, 2011 6:03pm
Quoting alstural
my opinion that only s-e-p-a-r-a-t-i-o-n of accts in a bank

can protect a client when it's money is not accessible for a broker

i know only one broker of this sort

does anybody know any other?
Any ASIC regulated broker for a start
  • #50
  • Dec 27, 2011 7:53pm Dec 27, 2011 7:53pm
I got a [sl/gap] comment yesterday for the first time my trade was allowed to slip 15 pips. I was suspicious about this broker using VDP.
  • #51
  • Dec 27, 2011 9:04pm Dec 27, 2011 9:04pm
Quoting RBlackburn
I got a [sl/gap] comment yesterday for the first time my trade was allowed to slip 15 pips. I was suspicious about this broker using VDP.
They opened for 5 minutes during christmas holiday schedule and trades were placed by my EA (the market was supposed to be closed). It wasn't large loss, and I could have rolled with it, but decided to email dealer and see what they would do. They reimbursed the losses on all of the trades that were opened. Took about 1 day for them to do it.

They are definitely using some variant of VDP. Especially when you see a requote, but no change in price. I know ways around it, just figure the price you pay for the leverage/nano lots.
Measure trends automatically with zero lag
  • #52
  • Dec 27, 2011 11:36pm Dec 27, 2011 11:36pm
Quoting jafar00
I've been working with ASIC regulations. Segregated client funds are one of the protections as are random audits of the company as well as scheduled audits. I believe ASIC to be unique in the audit requirements. In addition an AFSL holder must have adjusted liquid surplus funds (ASLF) of $50k plus 5% of adjusted liabilities between $1m and $100m plus 0.5% of adjusted liabilities exceeding $100m in client deposits.
.........
MF Global was grossly mismanaged. They traded with client funds which is a big NONO under ASIC guidelines. I'm unsure if it...
This is all good to know. The point is showing that which australian broker went under recently. by all means I have no beef with australian brokers or any broker. An illegitimate business works around these protections and knows how to shuffle. Regulation, like any other security measure, is a combination of safeguarding clients and allowing flow of business. If you make it too tight, no business transaction takes place. If you make it too loose, the ability to scam consumers is greater.

BTW, MF Global had an Australian division and were just as devastated as their USA counterparts. although Au traders may have a little better luck recovering more of their money. Sonray Capital was another good example. People really need to trust their own instincts. That counts more than any regulation in my opinion. Relying solely on politicians to keep you safe (who are just as human as you are) is not wise, especially when it comes to money. This is more difficult when the product is more virtual

Quote
Going into a bank and making a deposit to the broker's account is not the same as going to an IB and handing cash over. A bank is licensed to take cash deposits. I know of no Australian broker that can legally take a cash deposit across the counter. Unless of course they become a bank in their own right.
I am unfamiliar whether it is illegal or not to physically accept cash at broker's place of business in Au. But ideally, a bank deposit directly into broker's account or payment processor's account would be the best approach. Even if broker accepted cash/check at the place of business, additional safety precautions have to be taken to safeguard the cash. It would be easier for both parties to take the funds directly to the closest access point to reduce the possibility of theft, especially for larger deposits.

For instaforex local deposit, I deposit the funds into a bank account of the exchanger who does the deposit. The money is then deposited into instaforex account. It's a similar process when using webmoney or other payment processor exchanger.

There was an article at forexMagnates that details that storefronts are actually more effective than online advertising in some countries.
http://forexmagnates.com/acm-gold-ex...trading-floor/ . I wouldnt be surprised if some of the offices took cash deposit's.

Quote
Is stretching the truth as described above reputable to you?
- Their cabinet is quite sophisticated, and I like how I can manage many repetitive tasks with a few clicks.
- sms confirmation/validation of withdraw requests, if you want it.
- 24 hour customer service, acceptable english. Limited support on the weekend.
- payoneer debit card offering (not easy to get a branded/cobranded debit card from visa/mastercard and reputable bank)
- many deposit/withdrawal methods.
- trading conditions/platform are reasonable for my strategy.

I guess part of it boils down to what's more important to you. Brokers in less regulated countries have to work harder in the customer service aspect to reach out to customers. More regulated brokers have to be more choosy about their internal processes as it may violate law or interrupt other aspects of their business. Discriminating against a business solely based on location, considering some of the biggest scams can take place in your backyard. I've been had before. Some deals work, others dont. I don't become a victim; I learn and move on.
Measure trends automatically with zero lag
  • #53
  • Dec 28, 2011 6:08pm Dec 28, 2011 6:08pm
Quoting ybfjax
For instaforex local deposit, I deposit the funds into a bank account of the exchanger who does the deposit. The money is then deposited into instaforex account. It's a similar process when using webmoney or other payment processor exchanger.
That there is money laundering. You are giving someone who is unlicensed, a cash deposit who then converts the currency and deposits it into another account on your behalf. It's also a tad risky. Why not just wire the money directly?
  • #54
  • Dec 28, 2011 7:47pm Dec 28, 2011 7:47pm
3 floating positions closed in loss by instaforex

http://forum.instaforex.com/index.php?showtopic=4522

this same happened in my account yesterday

i dont want to contact their technical support, i just dumped them ...!
--------------------
  • #55
  • Dec 30, 2011 2:49am Dec 30, 2011 2:49am
Quoting leandar_
3 floating positions closed in loss by instaforex

http://forum.instaforex.com/index.php?showtopic=4522

this same happened in my account yesterday

i dont want to contact their technical support, i just dumped them ...!
another person also was trading that account same time so maybe its not instaforex's fault
--------------------
  • #56
  • Feb 12, 2012 7:33am Feb 12, 2012 7:33am
Quoting Patchwerk
A friend of mine tried to trade with Instaforex. According to his words the broker didn't let him close the position with about 80 pips of profit because the server suddenly became "not responding". That was kind of strange since there wasn't any high volatility at that time.
Wow. Is it really that bad? I actually signed up with them yesterday. Haven't put in real money yet. I have been looking for a good secondary brokerage firm all these while.
'For the market to work, it needs people who think that they can beat it.'
  • #57
  • Feb 12, 2012 8:07am Feb 12, 2012 8:07am
I wouldn't trust offshore broker
  • #58
  • Feb 12, 2012 1:38pm Feb 12, 2012 1:38pm
they aren't the best broker, but they work well. their execution is actually pretty good and the spread isn't that big either, which is decent for scalping. overall, no problems for me whatsoever.
  • #59
  • Feb 12, 2012 4:52pm Feb 12, 2012 4:52pm
Quoting jhehe
they aren't the best broker, but they work well. their execution is actually pretty good and the spread isn't that big either, which is decent for scalping. overall, no problems for me whatsoever.
And the Internet screams "SCAM!!"
  • #60
  • Feb 15, 2012 3:05am Feb 15, 2012 3:05am
How the hell did they get the best broker awards?

http://en.wikipedia.org/wiki/InstaForex#Awards
'For the market to work, it needs people who think that they can beat it.'
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