Important Facts
- Regulatory Authority: Pseudo regulation by non-governmental bodies, lacking real government regulation
- Instruments: Mainly Forex and Commodities but a limited number of stocks are available to trade
- Leverage: Up to 1000:1
- Unique Features: Demo Account availability, 5% Yearly Interest (provided certain conditions are met)
- Minimum Deposit:Varies on account type for Micro Forex (minimum deposit 1-10 USD), Mini Forex (minimum deposit 100 USD), and Standard Forex (minimum deposit 1000 USD)
The Platform
InstaForex only has one option when it comes to the trading platform namely MetaTrader 4. However it should be noted that MetaTrader is one of the most popular trading platforms and is used by many different trading companies. I personally like the MetaTrader platform however I wouldn’t say that it was the most intuitive platform for those who are new to Forex trading. A good thing about the InstaForex MetaTrader platform is that it can be used alongside Expert Advisors allowing you to trade mechanically. Those who wish to trade on the move however will not be as pleased as InstaForex offers no mobile trading application. Which is something many providers are either developing or already providing, allowing their clients to trade on the move and to allow them react to news and events relevant to the Forex markets.
Special Features
There’s nothing particular special about the InstaForex offering which sets it apart from its properly regulated competitors. InstaForex does offer 5% yearly interest on client funds which is a nice feature and will be a higher rate of interest than many people receive on their persona accounts. However this interest rate comes with some pretty serious strings namely that you have to trade a certain volume with InstaForex in order to be able to receive the 5% interest rate. InstaForex also offers demo accounts to those who want to try out and the trading platform before they deposit, while this feature is not offered by every CFD company out there the majority do seem to offer the service. Apart from this there’s not much really to get excited about, InstaForex does have a copy trader service which appears to be trying to emulate that of eToro but not much is made of it.
Spreads
The Spread offered by InstaForex are pretty tight with spreads as low as 3 pips on many instruments. The spreads do get considerably wider when you start looking at instruments which are of the more exotic type. I would say that the spreads are pretty reasonable however some of the bigger regulated European brokers offer spreads as tight if not tighter. However when talking about the spreads at InstaForex there are other things to remark about. For example many people complain slow execution and high amounts of slippage. This would make the tightish spreads pretty much meaningless if its true that the InstaForex has poor execution and significant amounts of slippage, as you would lose a significant amount of pips from such problems.
Customer Service
InstaForex has a large number of different avenues in which people can communicate with the company, including a large number of toll free numbers. It seems that InstaForex has made every attempt at making it easy for people to contact them with a huge list of contact details or numbers. A large number of offices are listed on their website however it is unclear whether these offices are real offices or just simply virtual offices in order to make it look like the company has a serious international presence. It should be noted I have also seen representatives form InstaForex attempt to resolve issues with disgruntled customers, however they do not always resolve the issue to the customers satisfaction.
Regulation
InstaForex, is completely unregulated as Russian financial regulation does not cover Contracts for Difference allowing operators in Russia to run financial companies offering such services without any financial regulation. However InstaForex has attempted to make it look like they are regulated by being a member of two different organisations created with the alleged intention of protecting consumer rights. It seems that these organisations have been created purely for the benefit of those companies who are members of these said organisations. In cases where the RAFMM has ruled in disputes between its members and customers, it has almost always ruled in favor of its members. To learn more about the Russian Association Financial Market Members organisation check out my article here.
Overall, I would suggest that potential customers avoid InstaForex mainly due to the fact they operate as a totally unregulated entity which precludes any possibility of serious customer protection.
