InForexEu Review – The Disturbing Facts about this Broker

InForexEu Review

If you have kept up with online trading, then you must already be familiar with the idea of scam brokerages. These have become quite widespread, given the massive influx of people in the financial markets as it gives them more opportunities to exploit people.

Since they have been active in the markets for quite a while, they have had to come up with new tactics to continue fooling people and one of the most disturbing trend these days is that of clone firms, one this InForexEu review highlights.

What does a clone scam involve? To put it simply, these brokerages will mimic genuine and authentic companies, which includes stealing their license numbers, logos, brands and even their entire websites in some cases. These are fraudulent companies that are only trying to take advantage of the popularity and legitimacy of genuine platforms in order to deceive people so they will deposit their money that they can steal at the end of the day.

The biggest issue here is that because these fraudulent and scam brokers steal the information of legitimate ones, it is not that simple to distinguish them. It is one of the top reasons why they are so successful in conning people out of their money.

So, how do you proceed? You cannot let the fear of being scammed stop you from delving into the financial markets, but you do need to take steps to protect yourself. In this case, it means that you take a closer look at the clone firm.

You obviously do not know it is a clone, so you should just look closely at an online broker before you sign up and ensure that everything is exactly what it promises. Going the same route with InForexEu should be your priority because this is the only way you will be able to ascertain if it is a scam, or not. After all, its appearance seems to be professional and it has made some rather tall claims, but they all need to be confirmed. Let’s begin:

Licensing and regulation

There is no better place to start looking into and verifying a company’s claims than its licensing and regulation. It is the biggest proof of the legitimacy and credibility of an online brokerage because these companies are now allowed to operate in most jurisdiction without getting the necessary authorization.

Those that do obtain it are known for offering professional, transparent and secure services, which can give you peace of mind and a flawless trading experience.

It is reassuring to find that InForexEu claims to be regulated and licensed by none other than the Cyprus Securities and Exchange Commission (CySEC). This is one of the most reputable regulatory bodies in the world and a license from CySEC can allow a broker to offer its services in many European countries.

There is a license number also provided and this is where you need to be proactive and not take things for granted. You should verify the number in the online register of CySEC, which will not take you long.

When you do run the number, you will discover that it belongs to a company named Instant Trading EU Ltd. A look at its domain names shows that InForexEu is not one of them at all.

What does this tell you? It indicates that you are dealing with a cloning scam because the broker has used the license number of a legitimate company to pass it off as its own. Hence, you are dealing with a completely unlicensed company and this makes it extremely dangerous.

Trading software

After you are done looking at a broker’s licensing and regulation, the next step is to check its trading software because this is the feature that you use the most during your trading journey. It is needed for trade execution and for performing analysis, which means you will spend most of your time on it. As it connects you to the financial markets, it needs to be up to the mark and offer you all the right features and tools.

While you are promised a good trading platform at InForexEu, the one you will find is a basic web trader that does not offer anything that you would expect from a professional trading platform like the MT5. In fact, the software appears to be rather shabby looking, with an oversimplified interface and the basic of tools that do not do traders a lot of good. There is nothing sophisticated, or worthy about the trading platform at all.

Leverage

One of the most vital trading conditions that an online broker is responsible for is leverage. This helps determine your flexibility in the trading process because leverage allows you to trade more than the capital you have invested.

If you make the right moves, it can give you higher profits, but the wrong one can magnify your losses the same way. Due to this risk, regulatory bodies have imposed a cap on the leverage that retail traders can be offered and the CySEC has done the same.

Yet, when you check out InForexEu, you will come to know that it is offering leverage ratios as high as 1:500, which is ten times higher than what CySEC, or other European financial authorities have permitted. It only gives you more evidence that you are dealing with a fraudulent company that just wants to deceive you in order to get your money.

Deposit

You have to make a minimum deposit to open an account with an online broker, but the amount can vary from platform to platform. Scam platforms will usually ask for a higher deposit because they want to pocket as much money as possible in the first go, knowing that once their ruse is exposed, they will not be able to get more.

This is also apparent in the case of InForexEu that demands a minimum deposit of $1,000. This is four times the standard and 100 times more than what most competitive brokers are asking for these days.

Bottom Line

When you discover the disturbing facts about InForexEu, you should immediately realize that it is just another scam looking to exploit you.