Spotinvest Review – Scam or Legitimate Broker?

Spotinvest Review

Have you heard about online trading scams? These have become quite common over the years and anyone who is thinking about trading online will hear about them quickly enough. Everyone is likely to believe it cannot happen to them until it does. Are you willing to take that risk?

It is better to be safe than sorry, which means you should learn to be cautious when you have decided to begin your online trading journey.

Choosing a brokerage is a vital decision and this is where you need to determine if you are dealing with a scam or legitimate broker. This Spotinvest review can tell you what to look for.

In the beginning, scammers did not have as many resources available, so they were prone to making some mistakes that could give away their secret quickly enough. But, they have gotten quite sophisticated over the years, which means it is not that simple to identify them these days.

Distinguishing them from legitimate platforms can be quite challenging because they present a very nice picture on the surface. Everything looks exactly how you would expect it to in the case of a legitimate company, but this does not mean that you should fall for it.

It is smarter to check everything to ensure that the broker is truly capable of providing you what you are interested in. Otherwise, you can simply look for a different option and save yourself a big hassle and hefty losses.

A little bit of an effort can help you avoid disaster, as will see in the case of Spotinvest that claims to be a regulated and licensed global brokerage. They are offering a horde of trading instruments, including precious metals, forex pairs, shares, indices, commodities and crypto coins.

The most appealing feature of Spotinvest is that it offers to help you accumulate wealth and achieve independence, which is what every trader wants. It promises great tools, strong support, a cutting-edge trading platform and fast deposits and withdrawals.

All of these are hard to resist, but taking a closer look will help you see that this is just a front and the brokerage is actually a scam. How can you figure it out? Read on to know:

Regulatory and licensing status

The easiest way to distinguish a genuine and a fraudulent broker is by looking at their licensing and regulatory status. The former will always have a license from the regulatory body of their jurisdiction and the latter will never do so because it would expose them right away.

Licensed and regulated companies have to comply with standards and laws, offer transparency and quality and can also be held accountable.

Scammers cannot do so because they would not be able to get away with their criminal activities. Therefore, you should always check this aspect of a company before taking things forward.

Doing so with Spotinvest will certainly pay off because you will discover that it is not globally regulated as it claims. It does boast a license registration number from the Comoros Island, but given this is an offshore jurisdiction, the license does not really have any value.

Secondly, you will get further confirmation when you discover that the Spanish regulatory body has issued a warning against Spotinvest.

The National Securities Markets Commission (CNMV) has stated that the broker is operating in the country without a license and has warned people from investing with it.

This is a black mark for any brokerage because it confirms that they are not an authentic platform and the same is the case with Spotinvest.

Attempt to steal information

You will find another indication that you are dealing with a scam when you check out the offerings on the Spotinvest website. Bear in mind that these indicators are often subtle, so you have to look for them.

If you check out the download section of the website, you will notice that there are two icons that appear to be benign, which are AnyDesk and Team Viewer. These may appear harmless, but they are really now.

If you are not familiar with this software, you should know that they are designed to give you access to your home PC environment via the internet. If you do download these apps from the Spotinvest website, they will ask you to share the installation details with them.

This will give them instant access to your PC and all the information stored on it, including your banking information, passwords and more. Hence, they will be able to steal money directly from your account.

Problems with the trading platform

It is a given that every trader would want to use a state-of-the-art trading platform when they begin their journey. You want to be able to execute your trades quickly and have access to the best trading tools in the market and this will depend on the trading platform you are provided.

This is where Spotinvest makes some very big claims about offering you both the MT4 and the MT5 trading platforms, which are the best in the industry and a favorite of professional traders.

But, when you go through their website, you will find that Spotinvest offers you a trial and unbranded version of the MT5, which has been taken directly from the website of the developer i.e. the MetaQuotes Software.

It is not connected to Spotinvest at all, which means there would be no point in opening an account with the broker.

The trading conditions

The trading conditions are of the utmost importance because they are linked to your bottom line and you will find that Spotinvest is offering leverage ratios as high as 1:500 to attract people to its platform.

As great as such high ratios sound, you should bear in mind that leverage is quite risky and can result in hefty losses. Many regulatory authorities have imposed a limit on the leverage that retail traders can be offered, buy Spotinvest is not regulated, so it is offering such risky levels.

Final Answer

All of these issues highlight that Spotinvest is a scam broker and is not legitimate, despite what it claims.