InstaForex Broker Review

Is InstaForex Safe?

InstaForex Group has been operating since 2007 and has built a reputation as a dependable broker for its many clients in Asia and worldwide.

While the Malaysian Securities Commission does not currently authorise trading with InstaForex, it operates across the Asia-Pacific region via its subsidiary Instant Trading Ltd, which carries a licence and full authorisation from the British Virgin Islands Financial Services Commission.  It is also registered with the Financial Securities Commission in Saint Vincent.  In the EU and UK, InstaForex’s European subsidiary Instant Trading EU Ltd is regulated by both the Cyprus Securities and Exchange Commission (CySEC) and the UK Financial Conduct Authority (FCA).  See below for a list of registered companies:

• Instant Trading Ltd is licensed by BVI FSC (British Virgin Islands). License Number: SIBA/L/14/1082.
• Insta Service Ltd is registered with FSC Saint Vincent, registration number IBC22945.
• Instant Trading EU Ltd is regulated by CySEC, licence number: 266/15.
• Instant Trading EU Ltd is regulated by the FCA, licence number: 728735.

The firm is a member of the Investor Compensation Fund, a scheme that serves to protect eligible retail clients by paying compensation in the event that a company fails to reimburse funds and/or financial instruments due to liquidity issues.  Note that this is only available for clients of the EU.

InstaForex has received many awards over the years; recent highlights include the Award for Best Broker in Asia 2019 (Le Fonti Awards), Best Forex Cryptocurrency Trading Platform 2018 (UK Forex Awards), and Best ECN Broker Asia 2018 (International Business Magazine).

Please note that Malaysian clients are not offered automatic negative balance protection, and InstaForex does not offer segregated accounts as standard, which means that your funds are not secure in the case of broker bankruptcy.  On this basis we recommend caution if you are considering trading with InstaForex.

Trading Conditions

InstaForex offers CFD trading on stocks, indices, metals, commodities, and cryptocurrencies.  InstaForex offers five live trading accounts, all of which have instant execution and relatively high trading costs.  Accounts have a maximum leverage of 1000:1, spreads are fixed, and two of the accounts are commission-based.  Accounts are denominated in USD and EUR, and the minimum required deposit to open an account is 150 USD.   It allows copy-trading but does not allow hedging and scalping. Lastly, Malaysians will be pleased to note that InstaForex offers Islamic Swap-Free accounts.

Account Types

InstaForex offers both 4 standard live accounts and an Islamic account.

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The four live account types include Insta.Standard, Insta.Eurica, Cent.Standard, and Cent.Eurica:

• Insta.Standard: This account offers commission-free trading on all asset types.  Spreads start at 3 pips on the EUR/USD, and leverage is up to 1000:1. Minimum transactions start at 0.01 lots, and Stop Out levels are at 10%.  This account is further divided into three tiers depending on the minimum deposit:
  • With a minimum deposit of 1-10 USD, traders will access micro-lot trading.
  • With a minimum deposit of 100-1000 USD, traders will have access to Mini Lot trading.
  • With a minimum deposit of 1000 USD or over, traders will have access to Standard Lot trading.
• Insta.Eurica: This account requires a minimum deposit of 150 USD and, instead of the spread, charges a mark-up fee of 3 pips on the EUR/USD.  Minimum trades start at 0.01 lots and Stop Out levels are at 10%.
• Cent.Standard: This account type has the same trading terms as the Insta.Standard Account, except – as the name suggests – all trades are denominated in currency cents (1/100^th of a currency unit). Because the risk is so low, we consider this a good practice account.  Spreads are wide – at between 3 – 7 pips, leverage is 1000:1, and no commissions are charged. 
• Cent.Eurica: This account type has the same trading terms as the Insta.Eurica Account, except – as the name suggests – all trades are denominated in currency cents (1/100^th of a currency unit). Because risk is so low, we consider this a good practice account.
• Islamic Account: All InstaForex accounts are available as Islamic Accounts, and this option can be selected at account opening.

Spreads and Commission

Spreads on the Insta.Standard and Cent.Standard Accounts are wide, starting at 3 pips on the EUR/USD – these spreads combined with the low minimum deposits and high leverage offered by InstaForex are dangerous for beginner traders and increase the risk of account wipe-outs.

Similarly, the mark-up commission (3 pips on the EUR/USD) on the Eurica.Standard and Cent Accounts are also high when compared to other brokers. Other brokers usually charge a flat rate commission per lot traded, making it easier to calculate trading costs.

Deposit and Withdrawal Fees

While InstaForex offers free and fast deposits by various methods, most withdrawal methods are slow, and all withdrawal methods have fees attached – usually between 0.5 – 2% of the transaction. For instance, bank wire withdrawals have a 2% fee and take 2-4 days to process.

Malaysian traders can make both deposits and withdrawals via local Malaysian banks, though banking fees will be charged, and costs will vary depending on the bank. 

Bonuses

InstaForex offers a variety of bonuses to its retail traders. Remember to read the fine print for all bonuses for agreeing to them. Current InstaForex bonuses available in Malaysia include:

• 100% First Deposit Bonus
• 55% Bonus on Every Deposit
• 30% Bonus on Every Deposit
• Club bonus for traders with an InstaForex club card (1% for deposits of 500 USD up to 10% for deposits of 15,000 USD)

InstaForex for Beginners

While InstaForex does offer two Cent Accounts targeted at beginner traders, it is not a welcoming environment for those with little trading experience. A structured trading course is only made available once a live account has been opened, and the freely available education is limited in scope and poorly presented.

Market analysis, on the other hand, is updated daily by the InstaForex team. It is detailed and precise and presented in both video and text format. While market research is not as frequent or as detailed as other large market makers, it is much better than the educational content presented.  Note that the website is fully translated into Malay.

Customer Support

Customer service available in 18 languages, including Bahasa Melayu and English, via email, live chat, Skype, and a responsive call-back service. Technical support is also available via several messaging services such as WhatsApp, Telegram, and Viber.

Technical support is available 24/5, while client relations is available from 08:00-17:00 (UTC +00).

Trading Platforms

Alongside InstaForex’s two proprietary web-based platforms, it also offers support for MT4 and MT5, the two most popular trading platforms in the Forex industry.

InstaForex WebTrader: Designed by InstaForex, the WebTrader trading platform is available only to the broker’s clients. WebTrader enables investors to trade directly in a web browser, so there is no need to download and install any software. This platform offers access to all the latest Forex news and analysis and synchronises with all other InstaForex platforms, allowing for multi-platform trading.

InstaTick Trader: InstaTick Trader is an in-house trading platform developed by InstaForex, its key advantage is 6-digit quotes. Most platforms only offer 5-digit quotes, so the InstaTick platform provides traders with an even more detailed overview of the tiny fluctuations in the Forex market. InstaTick is available in a web browser with no downloads required.

MetaTrader 4 – The MT4 trading platform is the most widely used Forex trading platform and can also be used to trade other instruments like commodities, cryptocurrency, stock index, and stock CFDs. Though it is now showing its age, MT4 is still immensely popular for its auto trading features that enable algorithmic trading and strategy backtesting with expert advisors (trading robots).

MetaTrader 5 – The MT5 trading platform is being adopted by more Forex brokers all the time, it has a more modern interface, allows for an unlimited number of charts to be used, shows Depth of Market, and has a built-in Economic Calendar. It also has a larger number of pending order types than MT4 and features an embedded chat system. In addition, the MQL5 scripting language is more efficient than its precursor and MT5 has more advanced charting tools than MT4.

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the InstaForex product offering. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.

Risk Statement

Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. InstaForex would like you to know that: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.24% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Overview

InstaForex is a BVI-regulated market maker broker with low minimum deposits, high leverage, and high trading costs. Compared to many other brokers with a focus on Asia, InstaForex has poor trading conditions and little educational support.

Both MT4 and MT5 are supported, alongside two proprietary platforms, and tradeable CFDs include stocks, indices, commodities, and cryptocurrencies. Deposits are fast and free, but withdrawals are generally slow and expensive. Furthermore, Malaysian clients are not offered automatic negative balance protection, and Instaforex does not offer segregated accounts as a standard, which means that funds are not secure in the case of broker bankruptcy.