Investactive is a forex broker registered in St. Vincent and Grenadine, owned by Hanabishi partners Ltd. The same company operates a few other brokers such as FinFuture and Terra Finance, the latter of which was blacklisted by the financial regulator in Luxembourg- CSSF. All of the companies mentioned are registered at the same address as well, which lead us to the conclusion that Investactive is most probably a scam.
The trading conditions are represented in, mildly said, unprofessional manner as there is no mentioning about margin requirements, leverage, spreads or commissions which is not typical for a forex broker. Also there is only basic information about their trading platforms, Metatrader is introduced but no further details are given. Instead, they stress on bonuses, trading signals and some sort of non-explained “insurance of account” which make them look more like an online casino than a reputable financial broker.
They say you can open demo account but in reality it was not possible. After a few failed attempts we realised that the only way to try Investactive is to fund the account with real money, a typical scammers’ approach.
The website is available in English, German, Russian, Italian and Spanish.
INVESTACTIVE REGULATION AND SAFETY OF FUNDS
As already pointed out Investactive is owned by Hanabishi Partners Ltd. and registered in St. Vincent and Grenadine, a small caribbean island part of the The Commonwealth of Nations. Similar to other caribbean islands of the kind, SVG is regarded as an offshore zone distinguished with lack of transparency and lack of strict financial regulation, which makes it a popular destination among dodgy IBC companies and shady forex brokers. The financial regulator in SVG has openly stated that forex, binary options and cryptocurrency brokers remain unregulated, advising the real and potential clients to be vigilant and alert when dealing with such entities.
Investactive claim that there is a 100% security of funds, following strict financial policy but that doesn’t sound convincing. First of all as unregulated broker Investactive is not involved in any well-known money protection scheme, similar to those in EU or UK. If there is some sort of insurance provided it will undoubtedly come at a price and under certain conditions, but there is no further information available and we conclude that this is a lie. If you deposit with Investactive your money is at risk.
INVESTACTIVE TRADING SOFTWARE
Investactive offers its clients MT4 accounts with 1:100 leverage which you cannot change through their Account Dashboard. The minimum spread is 3 pips for EUR/USD, which compared to other brokers is way too high, usually the pair is traded with less than a pip difference between buy and sell. MT4 support is provided by Lottens Partners, a company registered at the same address in SVG, obviously there is a very close connection, but no sufficient information available.
Investactive also offers their own web-based platform called Status Webtrader, which can be used with the same MT4 account. It is a very basic platform including simple features- simple indicators, different chart types, pending orders etc. Automatic trading or complex indicators, found with MT4 are not available.
INVESTACTIVE DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Investactive is $250. There are two ways to fund your account- directly with your bank card through their payment system or via the Russian personal wallet Piastrix, shown as Paytrio.
Special attention should be paid to Non-deposited funds. According to their T&C these are sums not directly deposited or gained in the forex market but bonuses or other not directly deposited funds by the client. Of course, as many other aspects this one is again not fully explained and detailed which gives Investactive the freedom of interpretation. We have to stress on the fact that each new opened account receive at least 25% bonus on the deposit, which is non-deposited fund. According to their T&Cs non-deposited funds are not available for immediate withdrawal. If you want to withdraw any money you have to meet “Minimum Trading Volume” requirements- 30 times the deposit amount plus the bonus issued, trading conditions that would easily qualify among the worst ever seen.
Withdrawals can be made only through the same bank account that you used to deposit funds and are subjected to processing and handling fees. Not surprisingly there aren’t any fees listed, and the freedom of interpretation is at their disposal again. At their own discretion they can adjust their fees in the way they wish and charge your account with, let’s say, fees as high as the sum of the deposit itself. It makes us think that Investactive never intended to pay back profits and gains.
It is said that the typical withdrawal processing time may vary and is usually between 2 to 5 days, way too long compared to most of the forex broker operating.
Investactive dormant account policy is absolutely unacceptable, if you haven’t logged in for six months from then on your account will be subject to a deduction of 10% each month. That is a typical sneaky approach of a scammer, reliable brokers will never impose percentage fees on Dormant Accounts.
At first glance Investactive is a great broker who cares for your well-being, giving away bonuses and 100% securing your money, but you should stay alert. As already shown the bonuses are a double-edged knife while the money protection is a big fat lie.
HOW DOES THE SCAM WORK
The scam is a criminal activity. Scammers are aiming at your money and their only purpose is to make you deposit money with them. Their targets are usually individuals who would easily believe in a get-rich-quick scheme. Scammers will promise you almost everything, they will manage your account, will send you free trading signals, will have the best software, will give away bonuses and promise hundreds or thousands of percents weekly gains and profits.
There are some very distinct features about scammers that you have to remember. First to know is that most of the scam is registered offshore and is not regulated by any financial authority. An important feature is the aggressiveness of the scammers, they will bombard your e-mail with offers and deals, including tempting bonuses and tailored trading conditions…only if you fund your account as soon as possible.
Rising in popularity among scammers are trading signals, automated trading and social trading. While many of the novice retail traders are looking to become rich in an instant they are tempted to believe crooked scammers who offer to trade instead of them, showing them groundbreaking success which is almost always a lie. Once the rookie trader deposited money with the scam broker he might consider them lost.
Beware! Trust only highly renowned forex brokers, well-known to the broad public, which are transparent and subject to regulation by financial authorities such as FCA and CySEC in EU and NFA in the US.
WHAT TO DO WHEN SCAMMED
Anyone can become a victim of scam. What you need to do first is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Share online your experience, it is important to protect others, as well. Be responsible!
You should be careful when you choose your forex broker, do not buy everything they say or promise. Do your research thoroughly, because forex scam is still widespread, despite the efforts being made to create safer environment. Being informed is an effective way to protect yourself from scam.
Avoid Investactive, there are too many signs showing scam!
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