Invest505 Review: Who is Behind Invest505.Com?
Invest505 is an investment scam with a pretty website but little more to offer. One of the first things that a potential client sees is the about us section which does not link to any information about the company but rather an “Avoid scam” section with cursory definitions of things like regulation (something they knowingly avoid by being based offshore in the Marshall Islands).
Furthermore, as the rest of this Invest505 review will show in great detail, this scam broker does not even offer great trading terms as their minimum deposit is set at a lofty $250. This is in contrast to lots of legitimate and regulated brokers which have a minimum deposit as low as $10.
It is plain to see that this is little more than a cheap money grab that could cause some serious harm considering they boast account types that go up to a minimum of $1000000.
Invest505 Regulation and Security
According to the Invest505 website, the brokerage is based in the Marshall Islands, which classifies it as an offshore company that operates outside of regulatory oversight. The Marshall Islands is known for its loose regulations and easy incorporation process, which can make trading with a broker based there a risky proposition.
Additionally, it is important to note that Invest505 is not affiliated with any reputable global company, adding to concerns about its reliability as a brokerage.
When choosing a broker it is imperative that you make sure that the brokerage of your choice has oversight from at least one top-tier regulatory body such as ASIC, CySEC, BaFIN, or the FCA. This will ensure that your funds are safe and that you are not dealing with an investment scam.
Trading Software Used by Invest505
A subpar proprietary web trader that has been pieced together yet is promoted as the future of forex trading is another telltale sign of a shady broker. Invest505 does not avoid this warning sign because they provide its users with a platform that fits that description.
To their credit, the platform is largely functioning. A long way from a cutting-edge trading platform that will unseat MetaTrader4-5 and other industry standards but functional.
When an investment firm offers MetaTrader4-5, which is the industry standard for a reason, it is always a positive sign. supplying all of the tools that traders require to make completely informed trade decisions. When choosing a broker, be sure to examine the platform they offer because it will have a significant impact on the tools you have at your disposal. Whenever possible, if the brokerage gives one, utilize the demo account to the fullest extent possible (lots of legitimate brokers do),
Account Types Available at Invest505
This brokerage has a whopping 8 account types with equally ridiculous minimum deposits for each. Below you will find the account types listed with their corresponding minimums.
- Regular: Minimum deposit of $250
- Bronze: Minimum deposit of $10000
- Silver: Minimum deposit $25000
- Gold: Minimum deposit $50000
- Platinum: Minimum deposit of $100000
- Diamond: Minimum deposit $250000
- VIP: Minimum deposit of $500000
- Pro: Minimum deposit of $1000000
From this it is clear that this scam broker is trying to pull out vast amounts of money from their clients upfront. From the account descriptions, it’s also clear that they do not offer any substantial difference between account types let alone anything close to being able to justify the jump from a minimum of $250 to $10000.
Deposit and Withdrawal Method
Invest505 only accepts deposits in cryptocurrency. They had previously stated that credit or debit card deposits would be possible, but when we attempted to do so, we were directed to websites of lesser-known crypto exchanges where they could purchase cryptocurrency using a card.
This means that Invest505 itself does not accept card deposits. This is important to note because it means that unlike credit or debit card payments, which can be subject to chargebacks within 540 days, crypto payments are irreversible.
Additionally, users should know that Invest505 charges a higher-than-average fee for inactive accounts, $30 after 60 days of no trading activity.
In terms of making a withdrawal, there is nothing on the website that indicates that this would be at all possible. The deposit conditions also suggest that this is true.
Offshore Brokers’ Tactic to Steal Your Money
Investment fraudsters operating in off-shore locations like the Marshall Islands, typically use social media to attract victims by offering them the promise of quick and easy riches in exchange for their contact information.
Once they have this information, they continue to contact the victims until they deposit money. These fraudsters often prefer cryptocurrency deposits because they are anonymous, untraceable, and not subject to chargebacks.
Eventually, the victims realize they have been scammed when they encounter a poorly-functioning trading platform or find that the minimum withdrawal amount is too high for them to access their funds.
Suggested Forex Brokers
If you’re seeking a trustworthy brokerage, we recommend considering the options provided below. These six brokers have been thoroughly regulated to the highest level, ensuring the security of your funds. Furthermore, these brokers have low minimum deposit requirements, ranging from $10 to $100, making them suitable for traders of all levels.
|FXTM Broker||Cyprus, UK, Mauritius||4.5||$10||Forextime.Com|
|OctaFX Broker||Cyprus, SVG||4.4||$100||OctaFX.Com|
|FP Markets Broker||Australia, Cyprus||4.7||$100||FpMarkets.Com|
|XM Broker||Cyprus, Belize, Australia||4.7||$5||XM.Com|
|HFM HF Markets Broker||Cyprus, UK, South Africa, UAE, Kenya||4.3||$5||HFM.Com|
|FBS Broker||Cyprus, Belize, Marshall Islands||4.85||$100||FBS.Com|
When it comes to closing out this Invest505 review it is impossible to end it with anything but the verdict that this is a complete scam that is not worth any traders time nor money.
A brokerage that is not regulated and is based offshore (In this case the Marshall Islands) is not to be trusted as there is no agency safeguarding your rights as a client of theirs. But sadly this is not where the problems with Invest505 end.
This broker openly lies by saying that they accept credit card payments when in reality clients are only able to fund their accounts with cryptocurrency. The broker does link you to a shady lesser-known crypto exchange though.
All in all the only positive about this broker is that they provide a functional trading platform for its users even though it a far from being a MetaTrader4-5 competitor.