Is InstaForex Regulated? Is it safe? - TU Expert review
License is the most important document you have to consider when choosing a broker. Many traders, who would like to start working with InstaForex try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether InstaForex is regulated, what regulatory authorities supervise the broker and whether it is safe to work with the company in general.
Short summary about the broker InstaForex
InstaForex has been in the international financial market since 2007. Over the years of its operation, the company has attracted more than 7,000,000 traders from over 140 countries. The broker has 2,500+ trading instruments, including cryptocurrencies, synthetic indices, etc. The company strives to develop its competitive advantages by offering traders and investors new technological solutions and analytical tools every day.
The InstaForex group of companies comprises:
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Instant Trading Ltd., regulated by BVI FSC (British Virgin Islands, SIBA/L/14/1082).
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Instant Trading EU Ltd., regulated by CySEC (Cyprus, 266/15).
InstaForex is also regulated by BaFin (Germany), AFM (Netherlands), MFSA (Malta), and regulators of Greece, UK, Czech Republic, etc.
| 💰 Account currency: | FSC - USD, EUR, RUB. CySEC - EUR, USD, PLN, CZK, GBP (GBP -only for accounts on МТ5). |
|---|---|
| 🚀 Minimum deposit: | FSC - $1. CySEC - €200/€1 |
| ⚖️ Leverage: | FSC - up to 1:1000. CySEC: leverage is up to 1:30 for retail traders and up to 1:500 for professionals. |
| 💱 Spread: | FSC - from 0-0.3 pips subject to the account type. CySEC - from 0 pips subject to the asset type. |
| 🔧 Instruments: | FSC - currency pairs, stocks, indices, metals, oil and gas, commodity futures, cryptocurrencies, and InstaFutures. CySEC - currency pairs, commodities, stocks, indices, cryptocurrencies, synthetic stocks and ETFs, and stocks at the moment of IPO. |
| 💹 Margin Call / Stop Out: | FSA - 30%/10%. CySEC - 100%/50% |
Pros and cons of InstaForex
👍 Advantages of trading with InstaForex:
•2,500+ trading instruments, including non-standard assets, such as InstaFutures and synthetic securities.
•Passive investment products, including PAMM accounts and a copy trading service.
•Non-standard technological solutions such as InstaSpot (P2P spot trading), OYS account, Stock Basket, etc.
•European regulation and IFC compensation fund with guaranteed insurance coverage up to €20,000.
•Comfortable trading conditions, such as a $1 minimum deposit and leverage up to 1:1000, for clients of the FSC-regulated broker.
👎 Disadvantages of InstaForex:
•Tough conditions for retail European traders due to regulations.
•The time gap between a trade executed by a trader and the one copied to the investor’s account in the social trading service can be up to 15 seconds.
Why is it important to work with a regulated broker?
License is a document that certifies that a broker operates legally and guarantees fulfillment of its obligations to the traders. A financial license is issued by a financial regulatory authority of a country (the National Bank) or a specialized authority (for example, Securities Commission, Futures Trading Commission, etc.). It is important to choose licensed brokers for the following reasons:
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A license guarantees that the broker operates in compliance with the rules of the financial regulator that issued the document.
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In order to obtain the license, a broker must comply with certain requirements, for example, the size of the authorized capital or personnel qualification. It is simply not lucrative for scammers to comply with such requirements.
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A broker’s license provides access to real markets, and you can be sure that the quotes are real and up-to-date.
The best option is to work with a broker that holds the license of the jurisdiction, where the trader resides. You can also choose a company with a financial license of another reliable jurisdiction, for example, the U.S. or the European Union.
Is InstaForex Regulated? Broker’s license
Security (Protection for Investors)
Information
The InstaForex group of companies is licensed by:
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Instant Trading Ltd by FSC (British Virgin Islands).
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Instant Trading EU Ltd by CySEC (Cyprus). The broker is a member of the ICF compensation fund with insurance coverage of up to €20,000 per each trader.
CySEC is one the most reputable European regulators, strictly adhering to the rules for conducting financial activities stated in the MiFID Directive.
FSC is an international regulator operating in accordance with the Law on Securities and Investment Business. The regulator strictly controls the activities of licensees and the execution of the tasks by brokers. Possession of a license from the FSC guarantees InstaForex customers information transparency and protection of their interests.
👍 Advantages
- Segregated accounts are maintained in accordance with the requirements of the regulator
- The customer is protected from negative balance
- Disputes are resolved by an independent arbitrator
👎 Disadvantages
- The regulator does not consider the claims of private traders with minor amounts
Brokerage fees
Broker’s regulation is the most important choice criterion. However, before you start working with the broker, it is also important to analyze its commissions and fees. TU analysts have studied the commissions and fees charged by InstaForex, which you can see below.
Traders Union specialists have analyzed InstaForex trading conditions for explicit and hidden commissions. All information on the size of commissions contained is on the broker's website. Trading account replenishment through the popular payment system takes place without commission. The commission is charged only by the bank or e-payment system. Information on the amount of commission fees is available on their website. Withdrawal fees range from 0.5% to 3.5%, depending on the electronic payment system. PayCo does not charge a withdrawal fee.
| Account type | Spread (minimum value) | Withdrawal commission |
| Insta.Standard (FSC) | From 3-7 USD | yes |
| Insta.Eurica (FSC) | From 0 USD | yes |
| Cent.Standard (FSC) | From 3-7 USD | yes |
| Cent.Eurica (FSC) | From 0 USD | yes |
| ECN.MT4 (CySEC) | From 10 USD | Yes |
| ECN VIP.MT4 (CySEC) | From 3 USD | No |
| ECN Pro.MT4 (CySEC) | From 7 USD | Yes |
| All ECN-accounts MT5 (CySEC) | From 0 USD | No |
Brokers that are similar to InstaForex
Many brokers operate legally, obtaining relevant licenses and permissions. However, when choosing a broker, it is important to compare their trading conditions. TU experts have prepared a comparative analysis of InstaForex conditions with its closest competitors.
Comparison of InstaForex with other Brokers
| InstaForex | RoboForex | Pocket Option | Exness | IC Markets | FxGlory | |
|---|---|---|---|---|---|---|
Trading platform |
MT4, MultiTerminal, MobileTrading, MT5, WebTrader |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, cTrader, MT5, TradingView |
MT4, MobileTrading, MT5 |
Min deposit |
$1 |
$10 |
$5 |
$10 |
$200 |
$1 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
Yes |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
8.00%% |
Spread |
From 0 points |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 2 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution, Instant Execution |
Market Execution |
Instant Execution, Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
Yes |
Yes |
No |
No |
No |
No |
InstaForex is the best option for traders with any level of experience. For active professional traders, there is a large pool of non-standard technological solutions for more accurate analysis. For novice traders, there are comfortable starting conditions, such as a $1 minimum deposit under the regulation of FSC and a $200 minimum deposit with the broker regulated by CySEC. There are PAMM accounts and social trading for investors.
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. Traders choose RoboForex for reliability, favorable trading conditions, minimum spreads, and commission fees. The company is recommended for beginner traders and experienced investors.
Pocket Option offers a wide range of trading instruments and copy trading services. It constantly improves its service quality and expands the list of assets and trading platforms. The broker is suitable even for novice traders without significant capital due to the low initial deposit. Experienced traders who work with CFDs and binary options can also use Pocket Option’s services.
Exness broker is a trusted broker partner that is compliant with all relevant terms. Exness complies with all payment obligations and pays money earned.
IC Markets Trading Company is a great broker for scalping enthusiasts, automated trading lovers, and beginner traders.
FxGlory is a universal broker for active trading that is likely to be interesting for European traders.
Conclusions
InstaForex cannot be considered absolutely reliable. The broker operates on a license of an offshore regulator. This creates certain risks regarding security of your funds. The broker has a good reputation. However, you can work with companies with an offshore regulation only at your own risk.
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FAQ
How difficult is it to obtain a brokerage license?
The procedure for obtaining a license differs depending on the jurisdiction, but it is very difficult and expensive to get the document in a reliable jurisdiction. This is why only reliable brokers obtain licenses.
Why is it not recommended to work with offshore brokers?
Offshore brokers have to meet minimum requirements for obtaining a license and reporting, which is why often scammers get such licenses.
Can an offshore broker be reliable?
Yes, although there are not many of such brokers. There are brokers with a good reputation, but with an offshore license. You still need to be very cautious when working with such companies.
How do I check a broker’s reputation?
In order to check a broker’s reputation, you need to read user reviews. However, it is recommended to only use independent websites for that.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.