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InstaForex regulation and how it scores

Regulation carries the heaviest weight in the score, which is why it is scored first. Here is InstaForex's licensing and the protections behind it.

Facts last checked . Read the full InstaForex review.

Regulation and safety

Regulated by
British Virgin Islands Financial Services Commission (BVI FSC), SIBA/L/14/1082
Regulator tier
Tier 3
Register entry
BVI FSC Investment Business register
Client money segregated
Yes, segregated accounts available
Held at
Regulated banking institutions
Negative balance protection
No
Compensation scheme
No statutory investor compensation scheme
Audited by
Independent external auditor
Not available to
United States and other jurisdictions where services are restricted or prohibited

What this means

Regulation carries the heaviest weight in the score, which is why it is scored first.

InstaForex's licence is offshore (FSC). Offshore entities typically offer higher leverage and lighter reporting, and compensation schemes do not apply - the trade-off is protection, not price.

An FSC licence (Mauritius or Belize, depending on the entity) is an offshore authorisation with lighter reporting duties than a tier-one regulator.

Client money is held separately from the firm's own money, at Regulated banking institutions. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

There is no negative balance protection. In a fast market a position can gap straight through your stop, and without this the resulting debt is legally yours - you can lose more than you deposited.

Covered by No statutory investor compensation scheme, which pays eligible clients up to its limit if the firm fails owing client money.

Questions about InstaForex regulation

Is InstaForex tier-one regulated?

InstaForex's strongest licence is recorded as Tier 3.

Who regulates InstaForex?

InstaForex is regulated by British Virgin Islands Financial Services Commission (BVI FSC), SIBA/L/14/1082.

Does InstaForex offer negative balance protection?

Negative balance protection at InstaForex is recorded as: No.

Regulation at brokers under the same regulator

More about InstaForex