Welcome to the 500investments review.
500investments.com claims to offer over 1,000 assets for trading in the top global financial markets.
500 Investments is offering trading in Forex, Commodities, Stocks and Indices. The broker touts a number of benefits associated with using their service.
These include access to a trading mentor, account manager, technical support and premium webinars.
500investments even claims that their unique innovative trading platform offers customized charts and live data feed, desktop and mobile compatibility and a set of professional trading tools.
In addition to this, 500 Investments has created 5 different account types for their clients.
They’ve listed various features associated with individual account types. Minimum deposit is $250.
However, 500 Investments broker is running a trading platform called TraderSoft. We have never used this platform before.
However, we know that there’s a reason as to why most traders prefer the popular MT4 trading software as opposed to all the others in the market.
This broker touts TraderSoft platform on their website, claiming it offers fast execution, advanced reporting, risk management among other benefits.
There advantages are general in nature as we have not heard of anything that is out of the ordinary among the items listed in the benefits section.
This platform is supposedly going to optimize your trading experience with live charts, economic calendar, price alerts, risk management and trading signals.
Obviously this is an in-house trading platform and its programming language is not compatible with the best trading tools in the market.
While the offering of this broker is quite attractive, we feel that there are serious issues and concerns affecting this broker that need to be discussed.
First of all, they’re not regulated by any financial watchdog and this poses a serious risk to traders who contemplate to use 500Investments’ services.
Secondly, details of the company behind this broker’s website cannot be found anywhere on the internet. The only information we have is that they’re operating from St. Vincent and the Grenadines.
St. Vincent and the Grenadines is a jurisdiction know for weak regulatory framework. In fact, the financial regulators here are only regulating the insurance industry, not Forex brokers.
Every time we review a broker, we usually go through their website to try and see whether the advantages can outweigh the disadvantages.
We were able to find that 500Investments broker only has one advantage attributed to the use of their website.
The only pleasing thing about this broker is that they offer numerous trading instruments which could mean that traders have a wide range of financial instruments to trade.
500investments trading platform is praised for simplicity and sophistication all in one place. This makes the entire thing look like it can rival the popular MT4 trading software when that is far from the truth.
In fact, brokers who don’t have MT4 software use this trick to delude less experienced traders.
They make it look like it will be easier to make money with their proprietary trading platform, when that is not the case.
500Investments review: the disadvantages
We’ve said earlier that this broker suffers many setbacks which could cause professional traders not to choose their platform.
Apart from regulatory huddles that they currently suffer, it’s not clear what the cost of trading with 500 Investments is.
Spreads have not been published on their website and so are commissions charged for trading activities when using their account types.
The only thing that is clear is that the broker will provide platform introduction education since this is not as straight forward as MT4 or cTrader.
The other thing that’s clear is that fundamental and technical analysis will be provided. We assume that this information will be generic in nature.
Relying solely on the broker’s technical and fundamental analysis will never give you an edge in trading.
Lack of a regulatory license
500Investments has never bothered to apply for a license.
The reason could be due to the fact that they’re running business in a jurisdiction not associated with strong regulatory framework with regards to how Forex brokers work.
This is a favorite jurisdiction for shady brokers and it’s not by accident that 500 Investments picked this destination for their headquarter.
Traders are advised against using the services of unregulated brokers.
These brokers are not responsible for safeguarding their clients funds.
They often mix their clients’ funds with those of the company, making it difficult to differentiate between what the company will use for their day-to-day operations and what clients will use for their trading.
Secondly, brokers such as 500Investments are never regulated for the simple reason that they always have an end-goal in mind.
The goal is often to get as many clients as possible and once they gather enough deposits, they can simply disappear without a trace.
They know that clients will not have anywhere to report them to because for one, the website has not disclosed the name of the company associated with their operations and secondly, there’s no where to report this kind of act when clients deal with an unregulated broker.
Based on this finding, we implore traders to avoid 500Investments broker altogether.
Dirty rules with your money and longer withdrawal times
A fee of 0.5% of the withdrawal amount shall apply every time you cash out. This is according to the companies withdrawal policy.
Furthermore, their terms and conditions on withdrawals say that 500Investments broker will charge a $30 flat rate fee if the above percentage fee is equal or is less than $30.
Furthermore, their terms and conditions state that withdrawals will be processed within 7 business days. Most brokers process within 24 hours.
No client feedback or reviews
No one is willing to invest with a broker whose reputation is not known.
When writing this 500Investments review, we thought it would be easier to find reviews highlighting the past experiences of their customers.
But this is not the case. Kindly make use of this 500Investments review to air your opinion and experience regarding this broker.
At the end of the day, this broker is gonna offer you a raw deal. It is better to trade with a regulated broker than one who is not.
It is better to look for a broker who is rated highly in the industry. Some of the brokers we’re talking about can be found here.
Please utilize their services.
Thanks for reading this 500Investments review.