After going through the stories of people being scammed by brokers, it makes you wonder how people fall into their trap. There was a time when it wasn’t that complicated to distinguish between legitimate and scam brokers, but it has become tougher than ever to do so now. Moreover, most of the time people get scammed because they fall for the impressive claims made by the company. They create a false sense of security by presenting themselves as good and reliable options and this can be your downfall, if you are not careful enough. Going through this Investgeo review will tell you just how these scams can trick you.
There is no denying that trading online is a lot more convenient, flexible and easy than traditional trading, but you also have to contend with the risks. Just because you are eager to follow the trend doesn’t mean that you throw caution to the winds and expect everything to go your way. All you have to do is see the statistics and you will find out just how prevalent these scams have become in the market. No matter how smart you are, you have to remember that these scammers are also very sophisticated and know just what to do to lure people in.
You will see this when you check out the Investgeo website because the company appears to be perfectly legitimate and professional at first glance. It is only when you begin digging and put its services and offerings under the microscope that you realize the issues with the broker that tells a completely different story altogether. There are numerous claims of the company that fall apart upon a closer look and this review highlights some of them:
Licensed by the FCA
The first and most prominent claim that Investgeo has made is regarding its licensing. According to the broker, it is licensed and regulated by one of the most renowned and well-reputed regulators in the world i.e. the Financial Conduct Authority (FCA) in the United Kingdom. Considering the fact that the broker has an address on its website showing its office location to be London, this licensing doesn’t come as a surprise.
But, you will get a nasty surprise if you were to follow up on Investgeo’s claims and check the FCA’s online register. This is when you find out that no broker by this name is listed there, which means it is an outright lie. As a matter of fact, you don’t even need to check the register because you will notice that the broker is breaking at least three of the policies of the FCA. They offer their clients access to crypto derivatives and this asset class has been banned by the FCA because of the risk of volatility and scams.
Offer of bonuses
Another glaring issue that you will come across when you take a closer look at Investgeo is that they do not have any Terms and Conditions on their website. What legitimate broker wouldn’t have such important legal documents? After all, these are meant to provide you details about the company’s policies and services and determine your relationship with them in the long run.
Not only are these missing, you are also offered trading bonuses at Investgeo, which is another practice that the FCA has specifically banned because it exploits traders. These bonuses are offered by the broker and the worst part is that they haven’t mentioned the strings attached to them, which means you could be asked to do anything, most likely achieving impossible trading volume requirements to make withdrawals.
Apart from that, you will also not find any information about the fees that Investgeo may charge from you, which means you have to go in blind, something no authentic broker would ever ask of its clients.
The third policy of the FCA that is violated by Investgeo is the amount of leverage it offers. There is no harm in offering leverage, as it is considered a part of trading and many people can use it to their advantage. However, excessive leverage can be dangerous because there are a lot of risks involved, due to which the FCA has restricted it to 1:30 for retail traders. Yet, you will have access to a leverage of 1:200 at Investgeo and this shouldn’t be possible because the broker claims to be licensed by the FCA.
No specified minimum deposit
One very strange feature of Investgeo that you will find is the lack of a specific minimum deposit. It is the norm for brokers to ask for some initial deposit from their clients in order to open an account. According to Investgeo, the minimum deposit will depend on a personal deal between the trader and the broker. This means that they can ask for as much as they want from their clients. It sounds fishy and the lack of transparency should definitely be considered a warning because regulated and licensed brokers do not indulge in any such activities.
Lack of proper trading platform
If there is one crucial tool that a broker offers to traders, it is the trading platform used for executing trades and monitoring the market. It offers the services and tools that can shape your journey and outcomes, so it has to be a good one. Research shows that the MT4 and the MT5 trading platforms are considered the best ones in the market, as they use advanced technology and provide a ton of trading tools. But, a web-based trading platform is provided by Investgeo that doesn’t even come close to the MetaTrader offerings. Not only is it lacking, but also similar to what most scam brokers are known to offer.
The outright lie about their licensing status for creating a false sense of security is enough to show that Investgeo is a scam broker. But, if you are looking for additional proof, the high leverage, lack of legal documents, vague minimum deposit and absence of a proper trading platform are enough.