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InstaForex - What do you think about that?
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Author:  fxdaytrader [ Wed Aug 21, 2013 3:45 am ]
Post subject:  InstaForex - What do you think about that?
Totally unbiased, just a quote out from their "open account agreement":
5.12. In case the price change that was caused by a difference between the last value of a forex instrument price and the first one at the point of market opening or was related to a news release affects the profit by more than 10% of the initial deposit, the Company reserves the right to make a correction to the result of such deals by a value proportionate to the difference between above-mentioned prices by means of charging part of funds from the trading account with the following note: "Clause 5.12 correction", in certain cases at the discretion of the company minimum alteration of profit can be limited by less than 10% of total deposit.

5.13. The Company reserves the right to nullify results of a deal if the Company discovers that money used to execute the deal has been acquired in a violation of provisions of any Company\'s agreement, including the present Agreement, accepted by the Client.

5.14. If the total swap on all the trades made exceeds USD 5,000, the Company reserves the right to correct it to USD 5,000 in some cases.
Any further questions? :idea: :mrgreen:
Author:  Jeuro [ Fri Aug 23, 2013 6:18 am ]
Post subject:  Re: InstaForex - What do you think about that?
Totally unbiased comment. (never traded with this broker and probably never will)

5.12 is meant for those wanabe "clever" traders that deposit very low amounts in different brokers, over leverage in hedged positions (buy/sell) between Brokers over weekends.

If a big gap does occur, one Brokers does a margin call but the loss is limited to the deposit. In the other brokers you could triple the profits.

5.14 is meant for those traders that try to benefit from swap be also hedging between Brokers. Brokers do not lose money when they pay swap. But if that is all you do, and open 1 trade and keep it for months, they are not making money on you as you do not do any volume. So, if you make more then 5K in swap, they want a cut for maintaining the account over time.

Bottom line, I am guessing this Brokers dos not want these type of traders and is up front with it.

Not sure if this qualify under this new Section. In my opinion does not. But does prompt to us
read all agreements before opening an accounts.

J.
Author:  Layzars [ Sat Jan 11, 2014 10:04 pm ]
Post subject:  Re: InstaForex - What do you think about that?
Definite scam broker; the FPA concurs. At best, it's one of the worst trade environments out there.

While I can see 5.12 attempting to minimize overleveraged gambling, it's a bullshit clause that sharply limits the profitability of legitimate news trading, and essentially gives them effectively _unlimited_ power to annul news trading profits.

If Instaforex really cared about stopping overleveraged trading, and not shoring up their risks as counterparty to successful news traders, they'd specify thresholds for account size or margin utilization ratios which trigger the application of this clause, or better yet, not allow such ridiculously high leverage ratios in the first place!

Also this is to say nothing of the LibertyReserve fiasco, where they confiscated 50% of all LibertyReserve deposits.
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