Good forex brokers in the industry are hard to come by, even though there are hundreds of brokers in total. I have already praised some of the best forex brokers out there that I myself have worked with. However, this iBrokers review is meant to highlight the other side of the industry, the underbelly, filled with scam brokers just out to take your money.
Many of the brokers in this category are sophisticated, and it can be difficult to realize you have been trapped until it’s too late. I didn’t have any trouble spotting the iBrokers scam, though, as they are the lazy kinds of fraudsters that can’t even cover their tracks.
Is iBrokers legit?
By all measures, iBrokers forex broker does not appear legit to me, and I shall explain why. Fortunately for me, they have dedicated an entire page on ‘Why we should choose iBrokers’. I’m going to use their own list to show you why you should not choose iBrokers.
They claim to be all about transparency, and conducting their business in a way that doesn’t pose a conflict of interest. Well, let’s see about that. The parent company behind the iBrokers brand is one iBrokers Trading Solutions Ltd., based in the UK. The parent company is indeed licensed by the Companies House, but only as an IT consultancy firm. Keep in mind that it is required that all companies in the UK register with the Companies House.
However, the company is not regulated by the FCA, which means their activities are not being monitored by a financial regulator. Where is the transparency there? That is the first warning flag, as it is never advisable to trade with a company that has no financial regulation.
Then they claim to be partners with major banks like Bank of America, Deutsche Bank, Credit Suisse, Goldman Sachs, etc. In fact, it just seems like they have listed all the major banks from all over the world indiscriminately. Now ask yourself, how one company could partner with all these major banks at the same time. Even the largest forex brokers in the world hardly have a direct partnership with more than a single major bank. And now they expect us to believe that an unlicensed broker has got all those connections? Get out of here!
High execution speed and powerful MT4 platform
I’m not going to pretend to refute these claims, because I didn’t even sign up for a demo account. I just didn’t want to waste my time with them. I seriously doubt, though, that they offer high execution speeds when they clearly seem like scam brokers. About the MT4 platform, all MT4 platforms are powerful, and only the tradable instruments offered vary from one broker to the next. This really isn’t something to brag about. Nevertheless, I’m not going to talk about something I’m not completely sure about, so let’s move on to the next reason.
They offer various account types, but from their website, only the ECN accounts receive ECN spreads, but that requires a $50,000 deposit. The base account is the Bronze account, which they claim has an ECN + 2.5-pip spread. I can’t confirm whether this is true or not, but I doubt if they can keep their spreads that low even in volatile market situations.
Without regulation, your account is never safe. Only a financial regulator can instruct a broker to pay you back in case the company has wronged you, but iBrokers is not licensed by the FCA. Therefore, there is no guaranteed security when dealing with this broker.
Can iBrokers be trusted?
I even checked iBrokers reviews from various sources, and they were mainly negative ones. There are overwhelming negative iBrokers opinions because people must have known not to trust this broker. I would advise you to withdraw your money immediately if you have already made the deposit. But keep in mind the withdrawal will cost you $25, regardless of the amount withdrawn. Even then, you will be lucky just to get your money back.