instaForex is an international retail Forex broker that accepts clients from different parts of the world. It was founded in Russia in 2007 and grown since then. Although instaforex is headquartered in Russia, it currently operates from Cyprus and has several representative offices in different parts of the world. It offers Forex, CFDs on Cryptocurrencies, indices, and commodities. Known for its advertising sponsorships across various sports, instaforex claims to have over seven million clients.

Pros

·        Instaforex offers massive trading leverage to certain accounts, up to 1:1000.

·        Its minimum deposit is $1, which is one of the lowest.

·        Has a great forexcopy system.

·        It also offers Islamic accounts, which carry no swaps.

·        It provides traders access to CFD trading in a wide variety of asset classes, including futures, in addition to the traditional forex, Cryptocurrencies, indices, and commodity CFDs.

·        instaforex’s website is well-organized, and clients can easily find their way to the important sections.

·        Its educational resources are relatively rich, with up-to-date market analysis, Forex calendar, and instaforex TV.

·        It has a highly responsive customer support service, which can be reached on various channels.

Cons

·        Instaforex is only regulated in the EU by the CySEC license.

·        It has no proprietary trading platform.

·       Spreads begin at 0.8 pips per trade, therefore its trading cost is on the high side compared to other brokers we tested. 

·        Does not provide MT5. 

Overall Ranking

Overall

Investment Opportunity

Commissions & Fees

Safety 

Research

Smartphone Usage

Customer Service

Education

Platforms & Tools

4/5
3.5/5
3.5/5
4/5
2.5/5
4/5
5/5
3/5
4/5

Overall

4/5

Investment Opportunity

3.5/5

Commissions & Fees

3.5/5

Safety 

4/5

Research

2.5/5

Smartphone Usage

4/5

Customer Service

5/5

Education

3/5

Platforms & Tools

4/5

Extended Review and Information

Established in 2007 by InstaTrade Corporation in Russia, instaforex is a poorly regulated online Forex broker that operates from Cyprus, making it available to all EU members and subject to the rules and regulations of the ESMA. With its advertising sponsorship in several sports, it has become a popular brand in the retail Forex industry. As its headquarters is now in Cyprus, so instaforex is CySEC regulated and is open and safe to use for EU customers.

Instaforex provides traders with the opportunity to trade about 107 currency pairs, and 88 CFDs on Cryptocurrencies, commodities, stocks, and indices.

How to Open your Account

It is easy for any trader to open an account with instaforex. Just click on the account open tab and fill in your necessary details, such as your name, email, phone number, and country of residence. You will be asked to answer a simple questionnaire as well as provide a photograph or scan of any ID such as driving license or passport, and a proof of address which is verified by a recent utility bill or bank statement. These can be provided as a screenshot, photograph, or scan.

The minimum deposit required to open a live trading account is $1. There are five account types to choose from, but there are two which we found the most interesting and unique — Insta Standard account and Insta Eurica account — and each account has a cent account option.

However, it is important to test the broker’s services and hone your trading skills with a demo account before depositing money with the broker. Instaforex provides you with virtual money for unlimited simulated trading. Please refer to their website for more information on account types.

Trading Instruments Available

Instaforex offers a huge selection of financial products, from currency pairs to stock CFDs. With instaforex, traders can trade up to 107 currency pairs, including the major, minor, and exotic pairs. It also offers CFDs on different metals, crude oil, and stock indices.

In addition, you can trade CFDs on 88 U.S. stocks, Cryptocurrencies, and futures contracts. The broker does not offer binary options to EU clients.

Deposits and Withdrawal Methods

There are several ways to deposit funds with this broker. One easy way is to transfer bitcoin to your instaforex account. This is processed in three hours and is free. It is a cool feature and we have not seen this with many other brokers. Another option is to use debit/credit cards, which is processed in 24 hours. Bank wire transfer works too, but it can take up to four days to be processed. E-payment methods, such as Skrill and Neteller, can attract about 2.5% deposit fee.

You can withdraw from your instaforex account via the same route, but to withdraw via Skrill, the amount must be less than $300. For bank wire withdrawals, the amount must be more than $300. There are different charges for each type. Please note that these charges are not due to instaforex, but the 3rd party which processes the payments.

Interface

Instaforex provides its clients with four basic platforms to perform hitch-free trading. The main platform for Forex traders is the MT4 platform, which is very popular and easily customizable. It is easy to use, especially for beginner traders. Instaforex unfortunately does not provide the new MT5 platform.

Instaforex also has MT4 for both Android and Apple users, as well as a WebTrader. Both provide all the necessary tools and smooth, swift execution that is expected. In addition, the broker provides a forexcopy system which is a great addition to their services.

Education and Research

On the aspect of education, instaforex has many different resources to help traders. The resources include daily market analysis blog posts, technical analysis post on the MT4 platform, video tutorials, and Instaforex TV, which provides several financial news analysis each day. We really liked this idea as it makes the platform a bit more fun, interesting and approachable than many other brokers.

On the downside, instaforex does not offer a lot of third-party research tools and services, and it doesn’t have a regular webinar schedule, where new traders can ask questions. Also, there are no enough basic trading guides for beginner traders. This makes us lean towards only recommending instaforex to a more seasoned trader, or those looking to leave their period of being a beginner.

Commissions and Fees

Instaforex offers two types of trading accounts — Insta Standard and Insta Eurica accounts. The minimum deposit for both account types is $1, but the transaction charges are a bit confusing.

For InstaStandard accounts, there are no separate commission charges, as they are built into the spread. The spread is marginally above the average broker, with spreads from 0.8 pips, depending on the currency pair and account type. On the other hand, the InstaEurica accounts don’t seem to have spread, and the commission charges vary, you will have to view the instaforex site for a clear view of all commissions and fees . All in all, there is not much difference between the transaction cost in both account types, despite the different structures. 

Customer Support

Instaforex offers 24/5 support service via various channels in more than 20 languages. A live chat channel is available on the website. They can also be reached on the phone, and there is a form on the website that can be used to request a callback. Email and Skype are other viable communication channels as well as Telegram. It is hard to come by such great customer support which can be reached so easily via so many different platforms. This gives users such a close feel with the broker and a much more friendly, informal environment.

On the other hand, only providing customer service 24/5 is problematic considering instaforex provides instruments such as Cryptocurrencies which are available to trade 24/7. If someone who trades Cryptocurrencies has a problem, although this is unlikely, it may not be resolved until the week begins and this is not optimal for these customers.

Awards

The broker has won some awards in the last few years. Some of the awards include:

·        Best Forex Cryptocurrency Trading Platform in 2018, from the UK Forex Awards

·        Best ECN Broker Asia 2018, from IBM

 

·        Forex Broker of the year for Eastern Europe 2017 & 2018, from Le Fonti Awards

Regulations and Jurisdictions

Instaforex is not licensed and regulated by any of the tier-1 financial regulators, such as the Financial Conduct Authority (FCA) in the UK, the Commodity Futures Trading Commission (CFTC) in the US, the Australian Securities and Investment Commission (ASIC) in Australia, the Investment Industry Regulatory Organization (IIROC) in Canada, the European Securities and Market Authority (ESMA) in the EU, or the Financial Service Agency (FSA) in Japan.

As this broker is based in Cyprus, it is regulated by the CySEC license, but this is a tier-2 regulator. So, it’s quite difficult to award 5 stars for safety for this broker. However, being CySEC regulated makes it a trusted broker for EU residents as they are subject to the ESMA rules and regulations.

Conclusion

Instaforex is popular because of its marketing sponsorship in different sports. It offers a very low minimum deposit, a great educational system, and a wide coverage of platforms. Despite its popularity, instaforex is unnecessarily expensive and poorly regulated, we do not highly recommend the broker to new traders, but we believe that active traders can fully benefit from the great customer service and account benefits provided by Instaforex. Similarly, an incredibly low amount of traders consistently lose money when trading with this provider in comparison to many other brokers. Please refer to the small-print below.

To improve, Instaforex could open its customer service for 24/7 service. In addition, they can add innovation to their platforms by incorporating the MT5 system.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62.89% of retail investor accounts lose money when trading 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. This does not constitute as investment advice or personal recommendations as your specific financial circumstances have not been considered. No warranty is given in regards to the accuracy and completeness of information. Past performance is not an indicator of future results.

This website and the information provided does not constitute investment advice or personal recommendations as your specific financial circumstances have not been considered. No warranty is given in regards to the accuracy and completeness of information. Past performance is not an indicator of future results. The information given is a reflection of opinion. Trading CFDs on leverage involves significant risk of loss to your capital.