InstaForex LTD Review [year]

Editor’s Verdict

Overview

Review

InstaForex LTD was founded in 2007 and over the past twelve years has become home to over 7,000,000 traders. This brokerage is registered in the British Virgin Islands but retains offices in over 260 countries with core staff in Russia. Traders have access to over 300 assets, and InstaForex LTD remains known for sponsorships across professional sports as well as trading competitions with an annual prize pool of $500,000; this year’s prize pool stands at $1,000,000. Over 30 analysts are employed by this broker who was awarded more than 30 financial awards in recent years. The maximum leverage given is 1:1000, there is no minimum deposit, and bonuses are offered with each deposit. Terms & conditions apply but are acceptable, and traders can collect their bonuses over time and withdraw them.

This broker presents the drive to remain ahead of its competitors by implementing technology efficiently, and by incorporating emerging markets like cryptocurrencies. The MT4 trading platform is offered together with a webtrader developed by InstaForex LTD. Ensuring continued access to financial markets are 9 trading servers supported by 25 other servers located throughout the world. The maximum time for a client to receive data from a server is noted as 0.2 seconds from any part of the world. A PAMM system is equally available, and InstaForex LTD possesses the proper tools to provide a competitive trading environment if traders understand how to utilize the services properly.

Traders in the European Union should refer to our InstaForex EU review.

Regulation and Security

Instant Trading LTD, the owner and operator of InstaForex LTD, is registered in the British Virgin Islands. It is authorized and regulated by the British Virgin Islands Financial Services Commission (BVI FSC) under license number SIBA/L/14/1082. This regulator was established in 2001 and was under criticism by more established regulatory bodies for its approach to regulation. BVI FSC regulated brokers are not required to maintain a certain amount of capital in their bank accounts or to segregate client capital from corporate capital. BVI FSC brokers are equally not required to publish their execution policy or to participate in an investor compensation fund.

The BVI FSC is making changes to its regulatory law as it matures, but it is worth noting that traders do not enjoy the equivalent level of protection as in other jurisdictions. It is possible to create a segregated portfolio company (SPC), but Instant Trading LTD does not fall into this category. Despite the modest regulatory environment, it does not mean InstaForex LTD has violated any rules or is actively doing so. This regulator does police its companies and ensures that they are financially sound and competent to carry on as a business. Likewise, it is important to note that BVI regulation does allow InstaForex LTD to offer higher leverage than other regulators, which could be a significant benefit for some traders.

InstaForex LTD is a great example of a brokerage in a lesser regulated environment providing a sound service to its traders as evident by over 7,000,000 clients who manage their capital at this broker. Segregated accounts are available on request and only for deposits above $100,000. Key documents are universally available on their website and transparency is better than expected.

EU traders are exclusively serviced by InstaForex EU LTD, licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 266/15.

Instant Trading LTD remains currently regulated by the BVI FSC.

Segregated accounts are exclusively available on request and for deposits over $100,000; at another section, the minimum is stated as $50,000. This is unacceptable, and all traders should have access to the similar level of protection a segregated account offers.

Fees

InstaForex LTD is an ECN broker and derives its fees from a combination of spreads and commissions on over 300 assets offered. Spreads range between 0.0 pips and 7.0 pips in the Insta.Standard account types for major and minor currency pairs. The Insta.Eurica accounts offer a 0.0 spread for a commission in the range of 0.03% and 0.07% of the deal value. During this InstaForex LTD review it was unclear if the commission applies per lot traded or per sum of the deal ticket.

CFDs on equities are exposed to corporate actions, like dividends and takeovers, and trading accounts are credited/debited the amount depending on the trading position. Commissions on equity CFDs are noted as 0.10% which represents the norm at many brokers. Commodity futures and CFDs introduce a commission of $30. Overnight financing charges or swap rates equally apply to all positions and traders can easily obtain the exact amounts from inside their MT4 trading platform.

What Can I Trade

InstaForex LTD offers over 300 assets across five classes, which is quite impressive. The primary focus remains the Forex market where asset selection is outstanding with 110 currency pairs available. Pure Forex traders have ample trading opportunities and many exotic currency pairs to choose from. Commodity selection is equally outstanding with a solid mix of hard and soft commodities, a total of 26 commodity futures contracts offer exposure across the entire spectrum.

92 CFDs, mostly on shares, offer an acceptable introduction into the sector. Only seven index CFDs are listed followed by five cryptocurrency pairs, this area requires additions to become a viable trading option; it does allow for an initial exploration of the respective sectors but remains far from a well-offered asset class. At the time of this InstaForex LTD review, a total of 240 assets are available for trading, with an additional 72 in the form of binary options provided by InstaBinary for a total of 312 assets.

The Insta.Eurica account lists spreads as low as 0, but the commission is in the equivalent amount as the spreads in the Insta.Standard account. Both accounts, therefore, create the same spread offering.

Account Types

Four account types are listed, but they represent two distinct account types; the Insta.Standard account with a cent account option for deposits below $1,000, and the Insta.Eurica account is equally available as a cent account. The Insta.Standard account involves excessive spreads between 3.0 pips and 7.0 pips and no commissions; the Insta.Eurica account contains no spreads, and commissions range between 0.03% and 0.07%. In another section, the commission is expressed as 3.0 pips to 7.0 pips, matching the spread offered in the Insta.Standard account. The listed spreads apply to major and minor currency pairs only.

It remains unclear if the commission applies per 1.0 lot traded or per absolute amount of the deal ticket. Another fact to consider is that 1.0 standard lot at InstaForex LTD equals just 10,000 currency units and not 100,000 units as remains the norm across the brokerage industry. Once again, there is a lack of transparency and clarity regarding a critical aspect for traders to consider.

The maximum leverage is capped at a generous 1:1000, but utilized leverage will be considerably less; various assets command different maximum leverage. A margin call is issued when the margin-equity ratio reaches 25% with a closeout at 10%. InstaForex LTD does provide a 5% annualized interest on account balances at the end of each month. This lowers the overall trading cost slightly which can benefit InstaForex traders. Binary options trading is equally available, but it appears that the option is embedded in either of the regular trading accounts and accessible from the client cabinet.

Trading Platforms

InstaForex LTD offers the extensive suite of the MT4/MT5 trading platforms, its proprietary WebIFX, and InstaBinary webtrader platforms. The MT4 trading platform remains the most widely used trading platform and it is clear that significant time and funds have been invested into the infrastructure to develop everything from plugins to enhance the capabilities of the platform to automated trading solutions. MT5 is supposed to be the successor to MT4, but due to the lack of backward compatibility it failed as such and most traders continue to use MT4, and we were happy to see that InstaForex LTD offer this solid option.

The Multiterminal is designed for account managers, but once again, without third-party plugins, the asset management capabilities are severely limited and unacceptable. The WebIFX webtrader offered by InstaForex LTD provides the same limited functionalities as the MT4/MT5 with a better user interface. InstaBinary is intended for binary options trading only and comes as a webtrader, no downloadable version is available.

The basic MT4 trading platform will offer new traders the basics to get started, but advanced traders and professionals will soon be faced with the limitations of it and require upgrades in the form of plugins. An upgraded MT4 does represent a solid gateway to financial markets.

The MT4 trading platform will be the most widely utilized and with third-party upgrades, it represents a sound tool for trading and asset management.

WebIFX is the webtrader offered by InstaForex LTD with similar key functions as the downloadable MT4/MT5 trading platform, but with a better user-interface.

InstaBinary was created solely for binary options trading and is a webtrader as well. The 7,000,000+ clients refer to InstaForex as a group and is not an indication of how many are trading binary options through this webtrader.

InstaForex LTD offers its Superior Forex Desk MT4 plugin that offers a few tweaks, especially when it comes to order-placement, though we’d have been happy to see additional add-ons that could make the trading experience even fuller.

Unique Features

Technology fulfills a key role at InstaForex LTD and this broker has created the InstaForex toolbar as well as four applications that grant clients access to critical information. They provide live quotes and news feeds to make the services of this broker more accessible. The four applications provide analytics, calendar events, forex news, and a calculator.

Where the above applications remain basic, this broker has created an MT4 plugin for chart pattern recognition branded Pattern Graphix. This marks by far the most quality product offered by InstaForex LTD and is free of charge for all clients. Pattern Graphix scans charts for patterns and offers trading recommendations. Retail traders will immensely benefit from this, especially since many lack the time and resources to continuously monitor markets. Alerts are available, and traders are advised to use this MT4 plugin as the value of automated pattern recognition is priceless.

InstaForex LTD supports the popularity of social trading through its ForexCopy system. It allows traders who prefer to follow existing strategies provided by other traders. Full and transparent statistics are provided about each trader and strategy, and new traders can easily diversify their forex trading approach. Traders who offer their strategies will receive compensation if they are profitable. This adds a revenue stream ideal for successful traders with minor portfolios, it is also compatible with the InstaForex LTD affiliate program so traders can double their earnings per referred trader. Traders can find an advisory business around the ForexCopy system, fully operational under the InstaForex LTD umbrella.

A more traditional approach to asset management is available through the PAMM system. It offers traders and companies alike the opportunity to build an asset management business under InstaForex LTD supervision. It represents investment opportunities for traders who seek to further diversify their capital, and the PAMM Monitoring system provides all the required analytics to carry out a more informed decision.

VPS hosting is also available at InstaForex, and the monthly fees are dependent on the account balance. VPS executes an integral part with many automated trading solutions. Every broker offering the MT4 trading platform who is committed to supporting the accelerating trend in automated trading must offer VPS hosting as an option. Three plans are present and the monthly fee ranges from free for account balances over $5,000 and the smallest plan to $40 per month for account balances below $500 and the best plan.

Research and Education

Research is provided by over 30 analysts under the lead of InstaForex LTD Chief Strategist Dean Leo based in Singapore. The quality of analytics provided by this team varies from analyst to analyst, a uniformed approach to the presentation and quality should be present. InstaForex TV offers traders an outstanding service and represents a priceless gem at this broker. Education is a key aspect of services provided by InstaForex LTD as evident with a 16-course program for beginners. Video tutorials and written content are equally available with quality academic material. New traders are recommended to permit their time with this course as it will pour a deep foundation.

Research

Dean Leo leads over 30 analysts in market coverage across asset classes. Some analysts provide a properly presented research note to clients, but others are an amateur-like attempt at research, lowering the general quality of this service. There is potential, but a comprehensive overhaul is required to bring the research department on par with its competitors. Traders can easily filter the provided research by analyst which helps to focus on those with a proper analysis.

An absolute gem at InstaForex LTD is their InstaForex TV section. The team behind this segment has been led by Ekaterina Stikhina since 2009. The steady leadership is evident in the service produced. Forex traders are treated to news, reviews of financial markets, interviews, economic calendar events, TV events like the InstaForex Miss Asia Beauty Contest, analytics, Geography with InstaForex and the Traders Desk.

Geography with InstaForex represents a genuinely interesting segment with a modern twist on a travel show. The team visits financial centers around the world and discovers how ancient trading techniques are merged with modern business. The Traders Desk allows traders to direct the content as the InstaForex TV team sorts through comments directed to them and visits MT5 forums to acquire the most discussed or requested topics for the following segment.

InstaForex TV represents a genuinely outstanding service offered by this broker.

Education

The crown jewel of the InstaForex LTD educational section remains an extensive 16-course program for beginners. A minimum deposit of $100 is required, but this is reasonable as every trader has to deposit before starting to trade. The amount is low enough to accommodate all retail traders and the value if the course is significantly greater than the required deposit. New traders are advised to take this course as their primary step after funding their trading account.

Video tutorials and an FAQ section cover all the basics and deepen the knowledge base of new traders; a vast selection of quality written content throughout the website dives deeper into specific topics. InstaForex LTD offers a quality academic program and has produced a product with interactive content and easy to follow examples. New traders are given the assistance required to learn about trading before venturing into financial markets.

A potent mix of videos, quality written content and specific examples presented through a mix of graphics and easy to understand examples complement the course. New traders are provided with the required tools to learn before they attempt to earn.

Customer Support

Customer Support Methods
Support Hours	24/7
Website Languages	EN ES AR FR DE ZH RU PT MS TH ID Other

Customer service is provided 24/7 by a multi-lingual team. Clients in need of assistance can either call the support team, request a callback, engage via live chat, write an e-mail, or use any of the messengers present. InstaForex LTD performs a valuable service by being available through a broad selection of communication methods. Most traders will rarely require support, but knowing a representative is accessible places a layer of comfort when managing portfolios with this broker.

Bonuses and Promotions

InstaForex LTD shares its success with clients through bonuses and promotions. Deposit bonuses remain a controversial topic as most traders don’t consider the terms & conditions. At InstaForex LTD, traders and investors with a long-term time horizon focused on building a portfolio rather than quick withdrawals can benefit tremendously from the bonus structure in place. This broker is transparent about the terms, profits area constantly available for withdrawal and the bonus amount can be unlocked for withdrawal once requirements are fulfilled. Traders with the proper mindset can utilize bonuses in each deposit and build their asset base with the assistance of the InstaForex LTD bonus structure.

Aside from bonuses on each deposit, InstaForex LTD conducts a series of trading competitions in live and demo accounts. Traders are required to earn the most amount of money in a given period; this shifts them away from trading and forces them into gambling behavior. Trading competitions are great for marketing purposes, but should be approached with caution.

Bonuses at InstaForex LTD will assist thoughtful traders and investors with a long-term mindset to expand their asset base. Terms & conditions apply, they are remarkably pleasant and profits can always be withdrawn and bonus money may be earned once requirements are complied with.

The bonus amount may be earned and kept after conditions are satisfied, this represents a genuine structure for dedicated traders.

Opening an Account

The online application for new accounts can be completed in less than 30 seconds and consists of the trader’s name, e-mail address, phone number and country of residence. This will grant access to the InstaForex client cabinet where accounts need to be verified. A copy of the client’s ID and proof of residency is required to fully unlock the trading account and enjoy all the benefits. This represents the standard operating procedure and traders should not be concerned when submitting their documents to this broker.

Deposits and Withdrawals

InstaForex LTD offers clients a comprehensive range of deposit and withdrawal options. Beside the commercial choices like bank wires, credit/debit cards, Skrill, Neteller, and Sofort, traders may use popular regional payment options like WeChat and Alipay. Bitcoin and Litecoin are equally supported together with over 20 additional options. The availability of regional payment options expresses dedicated support by InstaForex LTD to its client base.

Deposit fees are only applicable to bank wires and credit/debit card payments where system usage fees apply. InstaForex LTD is more than capable to reimburse clients for all fees that may apply; this represents a disappointment. Most deposit times are listed as instant while the maximum time noted as 24 hours and 2-4 business days for bank wires. Withdrawal fees apply across the board and processing times vary between one hour and six business days. Once again, with over 7,000,000 clients and a prize pool of over $1,000,000, withdrawal fees should be waived. InstaForex LTD would provide a significantly more efficient service to cancel all fees related to deposits and withdrawals than to provide trading competitions.

An excellent choice of deposit methods is available, ranging from commercial ones to regional ones.

Trading Platform

Summary

InstaForex LTD is a well-established brokerage, home to over 7,000,000 clients are served from 260 regional offices. Traders are treated to over 300 assets, but excessive spreads remain uncompetitive and the most significant impediment when considering this broker. The core of InstaForex LTD is sound and managed well as evident by over 30 industry awards received by this brokerage. InstaForex LTD is well-known for its generous promotions with the 2019 prize pool at $1,000,000.

Regulation is modest under the British Virgin Islands Financial Services Commission (BVI FSC) and the protection of clients is less favorable than more established regulators, but InstaForex LTD is fully compliant with the BVI FSC, and transparency is better than expected. Segregated accounts are exclusively available for deposits over either $50,000 or $100,000.

This broker offers a good trading environment and pure Forex traders will enjoy the vast selection of currency pairs. The maximum leverage provided is 1:1000, but it is asset dependent. InstaForex LTD offers Pattern Graphix, an MT4 plugin for automated pattern recognition which marks the most valuable product provided to traders. A 16-course educational program provides new traders with an excellent introduction to trading and a 5%annualized interest rate reduces trading costs.

A generous bonus program allows dedicated traders to assemble an impressive portfolio, terms & conditions are good, and profits can always be withdrawn without restrictions. The InstaForex TV section represents another genuine service provided to traders. This broker has conducted a few marketing stunts. They include the InstaForex Airplane in partnership with Czech Airlines, the FX Bot, or placing two forex trades on top of the Western Summit Mountain at an elevation of 4,165 meters, setting a world record for the highest forex trade placed above sea level.

InstaForex LTD remains an interesting broker to follow and if the management team decides to take proper steps to unlock the full value, it can ascend the ranks and become a genuine competitor to prime brokers. For now, it is a combination of gems and inconsistent services with a few unfortunate missteps. The potential to work with this broker and build a solid business is tremendous and InstaForex LTD represents a rare breed of brokers with untapped potential.

FAQs

Where is InstaForex LTD based?

InstaForex LTD is headquartered in Road Town, the British Virgin Islands.

How does InstaForex LTD make money?

InstaForex LTD derives its fees from spreads and commissions on over 300 assets plus fees for VPS hosting.

How can I deposit into an InstaForex LTD account?

Traders have commercial choices like bank wires, credit/debit cards, Skrill, Neteller, and Sofort, or may use popular regional payment options like WeChat and Alipay. Bitcoin and Litecoin are equally supported together with over 20 additional options.

What is the minimum lot size at InstaForex LTD?

The minimum trading size is listed as 0.01 lots.

When do a margin call and a stop-out take place at InstaForex LTD?

InstaForex LTD initiates a margin call at a 30% equity-margin ratio and a stop-out at a 10% equity-margin ratio.

Is InstaForex LTD regulated?

Instant Trading LTD, the owner as well as the operator of InstaForex LTD, is registered in the British Virgin Islands. It is authorized and regulated by the British Virgin Islands Financial Services Commission (BVI FSC) under license number SIBA/L/14/1082. EU traders are exclusively serviced by InstaForex EU LTD, licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 266/15.

What is the maximum leverage offered by InstaForex LTD?

The maximum leverage is 1:1000.

How do I open an account with InstaForex LTD?

InstaForex LTD has an online application form which is the standard operating procedure.

Does InstaForex LTD offer the MetaTrader Trading Platform?

Yes, InstaForex LTD offers the MT4/MT5 trading platforms as well as two webtraders.

By DailyForex.com Team

The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.