With the online trading world growing in popularity, the increase in scams is rife. Scammers are becoming increasingly clever, which means even the savviest trader can be lured by wonderful-looking websites and excellent deals that are too good to be true. Here, doing your due diligence is crucial. Our analysis of the broker, Investous, will show you exactly what to look out for to make sure you do not lose any money. If you are worried that you have fallen victim to a Forex broker scam, such as through Investous, simply give us a call. We have a qualified team who work with victims to make sure they can trace and reclaim the money that was taken from them.
Who are Investous?
The Investous site is run by a company called F1Markets Limited, which is an investment firm based in Cyprus. This has been authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) with the license number: 267/15. Their offices are located in Limassol, Cyprus. The investment firm, IOS Investments Limited, based in Belize, is responsible for the international arm of the site.
Even though they have this in place, they have a statement on their site that states their regional restrictions, alerting traders that they do not trade in the UK. It also confirms that F1Markets Limited offers services within the European Economic Area (EEA), which excludes Belgium. This means traders residing in these countries are unable to trade using Investous. Which is something to be mindful off depending on where you are in the world.
Investous offers four types of accounts. These are:
- Basic
- Gold
- Platinum
- VIP
Each account requires a minimum deposit, which ranges from 250EUR-250,000EUR depending on the account type chosen. According to the site, there is very little difference between the Gold, Platinum, and VIP accounts. The biggest differences in accounts are between the Basic and Gold accounts as they include more features and percentage in point also known as pips. This is not the general practice for a well-established broker. A good brokerage will ensure they provide equal quality service across all accounts to make sure trading remains fair and does not get overwhelmingly costly.
Is Investous a scam broker?
It is easy to fall for Investous’ charm. The company has a slick website and looks like a broker you can rely on. However, after the initial impression, you can break down the layers and discover what the company is really about.
Investous offers a leverage of 1:500 across all accounts, which is a common incentive used by scammers to secure their victims looking for a high return on their investments. Credible brokers under the European Securities and Markets Authority (ESMA), along with other regulators in the US and Canada, are unable to offer leverages higher than 1:30 for Forex transactions. It has also come to light that the F1Markets Limited’s passport rights have been rescinded. They were also asked to stop all activity in the UK, close all UK positions and return money to UK traders and alert them of the Financial Conduct Authority’s ruling.
Another red flag is the large inactivity fees they have. It is common for Forex brokers to have a small inactivity fee; however, this generally comes into play after six months of no activity. Investous charges inactivity fees after a month of no trading activity, deposits or withdrawals. After this, you are expected to pay 80EUR or its equivalent. This gradually increases with fees rising to 1,000 EUR after 12 months.
We also have to take into account the vast number of online customer service complaints they have received. With statements such as ‘Please avoid’ and ‘I wouldn’t recommend to anyone, customers are warning others about the losses they have suffered as a result of trading on the site and the impact it has had on them.
It is clear from what we have seen and have disclosed, such as the unreasonable fees, unlawful advice, and high deposits, that Investous is indeed a scam and should be avoided.
What to do next
If you are worried that you have fallen for a scam from Investous or another Forex Broker, please get in touch with our team at Wealth Recovery Solicitors. We have a highly qualified team who use their expert knowledge along with technology to trace your money, enabling you to reclaim the money back. We also specialise in providing court injunctions and handling complaints. We provide transparent and confidential bespoke recovery programmes to ensure everything is done to get you the justice you deserve.
To book a consultation, please call us on 0203 695 9239. Alternatively, fill out the form on the website where you can select the best day and time to contact you.