Invest Point Review – Are there any Red Flags?

Invest Point Review

When you are delving into the world of online trading, it is with the goal of making profits and certainly not becoming a scam victim. But, if you are not diligent enough, it can happen and you will be left devastated and empty-handed.

When fraudulent brokerages had first popped up, they were not as sophisticated as they are today. These days, they have access to software and technology that allows them to appear eerily similar to genuine companies, which makes them hard to distinguish.

Nonetheless, they will always have red flags, as this Invest Point review highlights, and you just have to identify them.

After all, no matter how many promises a scammer might make, it will not make them authentic. They will still remain frauds at the end of the day, which means their story will fall apart. You just have to be willing to pay attention to the details.

They can try to hide the red flags as much as they want, but if you are truly looking for them, you will have no trouble in learning the truth. The important thing is to be aware of exactly what counts as a red flag and once you understand that, you can keep yourself safe.

In addition, it allows you to sort through the many options and find the right online broker that can fulfill your trading needs in the best possible way, enabling you to have a flawless trading experience.

One of the options that you will come across is Invest Point that has presented itself as a global brokerage that offers competitive spreads, access to FX pairs, indices, stocks, crypto and commodities, competitive spreads as well as segregated accounts. It seems to be ticking all the right boxes, in terms of variety and security.

But, you have to look for red flags and ensure there aren’t any before you decide to open an account with Invest Point for your trading journey. Unfortunately, you will find a number of them that show that the company is not to be trusted. You can go over them as follows:

The absence of regulation

The presence of a license is what essentially distinguishes a legitimate company from a shady and fraudulent one. A genuine brokerage would always get a license because it adds to their credibility and they do not have anything to hide, so they do not have an issue with having their activities monitored.

These platforms comply with rules and laws and have to offer quality services to their clients, while also ensuring their safety and providing transparency.

Trading with such brokers gives you peace of mind because you know they are authentic and will not disappear. Plus, you can also hold them accountable if there is any dispute. The first red flag that you come across at Invest Point is that their entire presentation does not have a single mention of license and regulation.

A legitimate brokerage will always be upfront about their status, while a fraud one will remain vague. It appears that Invest Point fall in the latter category as there is no talk about licensing and regulation.

According to the brokerage, those who sign up with it have to be in compliance with the laws of Saint Vincent and the Grenadines. This cannot be considered reassuring either because SVG is an offshore jurisdiction that has become notorious for being a heaven for scammers.

The authorities do not regulate the forex industry, so brokerages like Invest Point can set up operations and not worry about any accountability, or oversight.

The availability of bonuses

Many traders will be drawn towards a brokerage when they find out that it is offering trading bonuses. But, you should bear in mind that this is a tactic often used by scammers because they are trying to attract as many victims as possible.

Most regulated and licensed brokers will not offer trading bonuses because this practice has been prohibited in a number of countries, as these bonuses usually have malicious trading policies.

Therefore, the fact that Invest Point is offering trading bonuses should be considered a red flag because it is not a good practice. Secondly, the bonus policy they have is downright malicious and this is another problem because it shows that the company is up to no good.

As per the policy, there is a withdrawal requirement to be fulfilled after you get the bonus. The problem is that the requirement is impossible to achieve, as it dictates that for every $100 bonus, you have to have a trading volume of $1 million, which is just not practical.

This gives Invest Point the excuse it needs to block your withdrawals, which is what scam brokers are after.

The lack of a professional platform

The trading platform that you use for trading can make a big difference in your performance, so you want one that is state-of-the-art, but here again you will be disappointed with Invest Point because it does not deliver.

Despite making tall claims, it offers a rather uninspiring and lackluster web trader that has become quite common amongst scammers.

This makes it a big red flag because most professional brokers will offer their clients the MT4, or the MT5 trading platform that are cutting-edge, innovative and equipped with all the right tools and functionalities.

The uncompetitive trading conditions

As the trading conditions affect your profits, you want them to be competitive, but Invest Point has terrible conditions to offer.

This is also a red flag because it means that you cannot make a lot of profits, as the brokerage will eat up most of your money in costs. The spreads it offers are as high as 2.9 pips, while most competitive companies will offer spreads under 1 pip.

Furthermore, the leverage ratios that Invest Point is offering are as high as 1:100 and these are extremely dangerous because they can magnify your losses.

The Conclusion

It is indeed apparent that Invest Point has a number of red flags, which show that you need to avoid this brokerage.