Is OBRinvest 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 OBRinvest try to check whether it is regulated. Traders Union experts have already done that. In this article, you will learn whether OBRinvest 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 OBRinvest
OBRinvest is an STP broker that specializes in CFD trading, and also allows clients to trade with currency pairs and ETFs. The company has been operating since 2012. It is regulated by the Cyprus Securities and Exchange Commission (CySEC, 217/13) and is a member of the Investor Compensation Fund (ICF). At the moment OBRinvest only provides services to traders from countries of the European Economic Area, excluding Belgium and residents of Switzerland.
| 💰 Account currency: | EUR |
|---|---|
| 🚀 Minimum deposit: | From €250 |
| ⚖️ Leverage: | Up to 1:30 (for retail traders), up to 1:400 (for professionals) |
| 💱 Spread: | From 3.2 pips (Basic), from 2.9 pips (Gold), from 2.3 pips (Platinum), from 1.8 pips (VIP) |
| 🔧 Instruments: | Currency pairs, CFDs on stocks, commodities, indices, cryptocurrencies, ETFs |
| 💹 Margin Call / Stop Out: | 70-100%/20-50% |
Pros and cons of OBRinvest
👍 Advantages of trading with OBRinvest:
•Access to 6 classes of trading assets.
•CySEC license and participation in the Investor Compensation Fund (ICF).
•Ability to trade through the proprietary WebTrader terminal or the classic MetaTrader 4 platform.
•Multilingual round-the-clock support service. It is available on the website and in your personal account.
•High level of security of capital and customer data due to the SSL encryption and storage of funds in segregated bank accounts.
•Free access to analytics and news from leading industry experts.
•A huge variety of educational materials on the website.
👎 Disadvantages of OBRinvest:
•Unfavorable terms for novice traders — spreads on basic accounts are from 3.2 pips, plus a deposit from 2€50, and no cent (micro) accounts.
•The company doesn’t serve US traders, and UK residents cannot trade CFDs on cryptocurrencies.
•Lack of bonus offers and investment solutions to generate passive income without active independent trading.
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 OBRinvest Regulated? Broker’s license
Security (Protection for Investors)
OBRinvest is a brand owned and operated by OBR Investments Limited. It is regulated by the Cyprus Securities and Exchange Commission (CySEC). The license number is CIF 217/13.
OBRinvest is a member of the Investor Compensation Fund (ICF), which compensates retail clients of CySEC-licensed Cypriot investment firms in the event of insolvency. The maximum amount of compensation for each investor is €20,000. OBRinvest ensures the security of client funds and confidential information when performing transactions using PCI scanning and SSL encryption protocols (including ClickSSL and Thawte). Moreover, traders' funds are stored in segregated accounts in reliable banks.
👍 Advantages
- Client funds and OBRinvest capital are segregated
- Professional clients are protected from negative balances
- Each client can apply to CySEC with a complaint if the broker violates the terms of the service agreement
👎 Disadvantages
- ICF compensation doesn’t apply to professional clients
- Verification is required to deposit and withdraw funds
- Registration with a broker is not available for traders from the USA.
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 OBRinvest, which you can see below.
A detailed analysis of the trading terms of OBRinvest shows that the broker maintains a floating spread as a trading commission. Its minimum size varies from 1.8 to 3.2 pips and depends on the type of trading account used. Customers with Basic, Gold, or Platinum accounts pay 3.5% of the requested amount for withdrawal to cards, and €30 /US dollars/£ for each transfer for withdrawal to a bank account. However, for each account, there is a certain number of free transfers: one free withdrawal (for the entire lifetime of the account) for the Basic account, one withdrawal per month for the Gold, and three transactions per month for the Platinum account. VIP owners withdraw funds commission-free. The account currency is the euro, and when a deposit is made in another currency, it is converted into euros with an exchange fee charged. The monthly inactivity fee is €80.
| Account type | Spread (minimum value) | Withdrawal commission |
| Basic | from $32 | Yes |
| Gold | from $29 | Yes |
| Platinum | from $23 | Yes |
| VIP | from $18 | No |
Brokers that are similar to OBRinvest
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 OBRinvest conditions with its closest competitors.
Comparison of OBRinvest with other Brokers
| OBRinvest | RoboForex | Pocket Option | Exness | AMarkets | FXGT.com | |
|---|---|---|---|---|---|---|
Trading platform |
No |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Pocket Option, MT5, MT4 |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5, AMarkets App |
MetaTrader4, MetaTrader5 |
Min deposit |
No |
$10 |
$5 |
$10 |
$100 |
$5 |
Leverage |
No |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
No |
From 0 points |
From 1.2 point |
From 1 point |
From 0 points |
From 0.5 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
No |
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 |
No |
Yes |
No |
No |
No |
No |
The OBRinvest broker is primarily suitable for professional traders from most Euro countries who are ready to invest in Forex instruments over €100,000.
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.
AMarkets is a broker that is more suitable for professional trading. Everything here is designed to accommodate trading with EAs and that is the broker’s strength. The weakness of the broker is that it won’t be easy for traders without experience to work here.
FXGT.com is a regulated Forex broker with bonus and partnership programs, loyal deposit requirements, and a wide range of trading assets.
Conclusions
OBRinvest 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.