instaforex.eu in brief
InstaForex is a trading name of Instant Trading Eu Ltd., which is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). The company presents itself as the best forex broker in Central and Eastern Europe. The site has a special section where you can see the history of the company’s awards since 2009. Customers can trade 2,500 instruments such as currency pairs, metals, energies, indices, shares, and cryptocurrencies, through the well-recognized terminals – MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Spreads are floating and you can open a live account with EUR 200.
The Regulation of the Company
The regulation of the brokerage company is important because you will feel safer when you know that your brokerage company must follow strict rules. InstaForex is a brand of Instant Trading Eu Ltd., which is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 266/15. The company operates and provides its services in accordance with the provisions set out in the Markets in Financial Instruments Directive (MiFID II). As part of the regulatory body’s standards, Instant Trading Eu Ltd. keeps customers’ funds segregated from their assets and cannot use them for its own trading. Instant Trading EU Ltd. is a member of the Investor Compensation Fund (ICF), which covers the client’s claims in situations where the company is unable to meet its obligations.
InstaForex offers its clients three types of active accounts, so that each trader can choose the most suitable one. They differ mainly in the spread, the platform, and initial deposit amount required.
The accounts that use the MT4 platform have the following properties:
ECN account – The minimum deposit amount is EUR 200, and you can trade 260 instruments. The spreads are floating and the average one for the major currency pairs is 1 pip. Cryptocurrencies are subject to a commission.
ECN PRO account – It requires at least EUR 2,000 to open this type of account, and you can trade 260 instruments. The spreads are floating and the average one for the major currency pairs is 0.7 pips. Cryptocurrencies are subject to a commission.
ECN VIP account – You must invest at least EUR 10,000 to open this type of account. There are 260 instruments available. The spreads are floating and the average one for the major currency pairs is 0.3 pips. Cryptocurrencies are subject to a commission.
The accounts that use the MT5 platform have the following properties:
ECN account – The minimum deposit amount is EUR 1,000, and you can trade over 2,500 instruments. The spreads are raw (without markups) at the expense of a commission, which is 0.05% for commodities, 0.005% for indices and 0.1% for cryptocurrencies.
ECN PRO account – It requires at least EUR 10,000 to open this type of account, and you can trade over 2,500 instruments. The spreads are raw (without markups) at the expense of a commission, which is 0.03% for commodities, 0.0025% for indices and 0.075% for cryptocurrencies.
ECN VIP account – You must invest at least EUR 50,000 to open this type of account. There are more than 2,500 instruments available. The spreads are raw (without markups) at the expense of a commission, which is 0.02% for commodities, 0.0015% for indices and 0.05% for cryptocurrencies.
What Type of Broker the Company Is?
When you want to know what type of brokerage company you will be trading with, the Order Execution Policy file will most likely let you know. The Execution Venues paragraph shows that the company acts as principal and not as agent on the client’s behalf; therefore, the company is the sole execution venue for the execution of client’s orders. Instant Trading Eu Ltd. does not transmit any of the client orders on the external market and is always the counterparty (or principal) to every trade. All this means that InstaForex (Instant Trading Eu Ltd.) acts as a market maker and the main conflict of interest exists. When the company executes orders, it keeps the risk to itself. Every loss for customers is a profit for the company.
The same document reveals that under specific trading conditions you may be re-quoted (if you submit an instant order for fulfillment) or your order may be filled with slippage (if you use a market execution mode). So, when the requested price is no longer available, your orders will be filled at the first available market price (if you use a market execution mode). This means that market orders are subject to slippage.
Once the market reaches the stop loss price the order is triggered and treated as a market order. Market orders are subject to slippage; therefore, stop loss orders are not guaranteed and will be filled at the first available market price.
In addition, the same document shows that all the retail clients are covered by the Negative Balance Protection policy. This means that a client can never lose more than the total sum invested for trading CFDs. In the event of a sudden movement in the market, which may lead to a negative balance on the customer’s account, this balance will be returned to this account.
In addition to the usual fees such as spread, rollover, etc., most companies impose some additional fees. If there is no trading activity in your account for more than six months, it has become inactive and may be charged an administrative fee. However, the amount of the inactivity fee is not mentioned. If the client account is inactive for more than one year, the company reserves the right to close it.
Deposits and Withdrawals
Deposits can be made by bank transfer, credit, or debit cards or through e-wallets such as Neteller, Sofort, and Skrill. The company declares that it does not charge deposit fees, covering all charges imposed on payment providers.
All withdrawal methods are subject to fees, covered by the customer. Withdrawals should be made using the same method used by the client to fund his/her trading account. The company claims to process the withdrawal request within the nearest working day. This section on the website informs that the average deposit processing time is about 20 minutes, and the average withdrawal processing time is less than 4 hours. InstaForex covers withdrawal fees for accounts deposited above 10,000 EUR.
You can trade via two of the most popular trading terminals worldwide – MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
MT4 combines a user-friendly interface and all the tools for online trading. It is the most recognizable platform in the world that offers a unique combination of accessibility and advanced features. Professional charts, many drawing objects and a set of asset classes are available at the same time. The MQL4 programming language integrated into the trading platform enables you to design and use automated trading programs, the so-called Expert Advisors (EAs). This is an automated trading software, which places, modifies, and closes positions.
The MT5 multifunctional platform provides instant access to a wide range of trading operations in the financial markets. This modern trading platform is equipped with all the features needed for successful trading, such as technical analysis and automated trading. In addition, the platform allows you to trade both foreign exchange instruments, stocks, and futures.
There is a comparison table that shows the main differences between the MT4 and MT5 terminals.
InstaForex offers seven asset groups for trading:
Currency Pairs – More than 80 major, minor, and exotic currency pairs can be traded. The spread is floating and depends on the account type. The spread of the EUR/USD pair starts from 0.4-1.0 pips for MT4 accounts and from 0.1 pips for the MT5 accounts.
Indices – You can trade 13 of the most popular major indices globally. Spreads are floating and depend on the account type. The spread of the DAX40 index starts from 1.7 points for MT4 accounts and from 0.8 points for MT5 accounts.
Metals – CFDs on 2 precious metals are available for trading. They are spot Gold and spot Silver. Spreads are floating and the one for the spot Gold starts at USD 0.80 (MT4 accounts) and from USD 0.15 (MT5 accounts).
Energies – You can trade CFDs on two products – Crude Oil and Natural Gas. The spread is floating and the one for Crude Oil started at USD 0.04.
Agriculture commodities (MT5 accounts only) – CFDs on 8 agricultural commodities are available including Coffee, Sugar, and Cocoa. The spread is floating.
Shares – You can trade more than 80 CFDs on US shares. The spread is floating and the one for Apple Inc. starts from USD 0.08.
Cryptocurrencies – CFDs on 12 cryptocurrencies (MT4) and 73 cryptocurrencies (MT5) are available for trading. They include Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin cash. The spread is floating, and you will be charged a commission between 0.05% and 0.1% per deal per side.
InstaForex is licensed and regulated by the CySEC and this license allows it to provide financial services across the European Union (EU). Instant Trading Eu Ltd. – the company that stands behind InstaForex is a market maker, and the main conflict of interest exists. The company provides a wide assortment of trading instruments with floating spreads via the popular trading terminals – MT4 and MT5. There are several types of live accounts, and you can start trading with as low as EUR 200. However, if you want to get narrower spreads, you must invest a substantial amount.