Unfortunately, the Russian segment of the Forex market is still poorly regulated. From time to time, some scam dealing centers and broking companies bring us “pleasant” surprises. The Russian Duma is seriously considering the possibility of adopting certain laws in order to regulate Forex. They also want ФСФР (FCSM) to become the regulator.
Meanwhile, InstaForex, the 4th most popular forex broker in Russia (after Alpari, TeleTrade and Forex Club) gave rise to another scandal! Masterforex-V Academy and Market Leader tried to investigate into the situation to find out what really happened!
Details
It all started from revealing some compromising material on the KROUFR forum! The investigation was initiated by Sergei Mayzus, an official representative of Flysun Holdings Limited (Cyrpus) and a co-owner of InstaTrade Corporation (35% share of the company’s stock).
Sergei Mayzus published some compromising material on www.MAYZUS.ru (his own website) and on the KROUFR forum. He say that he made several attempts to resolve the situation in a diplomatic way but the President of InstaForex ignored them. Eventually, Sergei Mayzus had to address the police to the local public procurator's office to stop the top management of the company from using fraudulent operations aimed at depriving the clients of their money. The list of those scam methods include multiple re-quotes, execution delays, misleading and public trolling on internet forums.
By the way, there is a whole army of indignant traders that blame InstaForex from playing dirty tricks on them. This is the text of Mayzus’s appeal to the Federal Security Service, the Russian police and the public prosecutors’ office:
The President of InstaForex is in hiding and doesn’t answer the phone! Moreover, Sergei Mayzus claims that he fell prey to multiple threats and he fears for his own life and their family’s lives.
According to Mayzus, he used to be the only director of InstaForex and the owner of INSTAFOREX and INSTATRADE as well as the following domains: INSTAFOREX.COM, INSTAFOREX.NET, INSTAFOREX.BIZ
However, on April 18th, 2008 the management privileges were handed over to the current president. However, the president actually seized the company, thereby inflicting major financial losses to Sergei Mayzus. The biggest deception was to talk Mayzus into starting Insta Markets Limited, an offshore company registered in Cyrus. The victim reports that on July 21st, 2010, the company applied for a SySEC (Cyprus Securities and Exchange Commission) license in order to be able to operate as a Forex broker in the EU. Mayzus claims that he spend some €350 000 of personal funds to get the license. However, the president was against the legal way since he wanted to use the company to evade taxes and launder the money gained illegal businesses and criminals. Therefore, he created such conditions that SySEC had to cancel the license, which resulted in financial and moral damage for Sergei Mayzus.
Mayzus is not the only victim since hundreds or traders suffer major financial losses as well. They either lost money when trading Forex (thanks to cheating) or have difficulty withdrawing funds.
Client’s Reaction
According to Sergei Mayzus, all the clients of InstaForex should withdraw their funds as soon as possible
You should be quick and persistent in order to withdraw your money from the collapsing pyramid created by Sharipov (this is the president’s surname). While he is away somewhere in Asia, trying to escape prosecution in Russia, clients still can withdraw funds, but sooner or later, Asia will know about his fraudulent schemes and Asian clients of InstaForex will start looking for Sharipov to get their money back as well.
According to Masterforex-V Academy, nothing is accidental in life and business. It is not accidental that InstaForex has been a representative of the 3rd (lowest) league of its Forex broker rating for 3 years. This means that traders are strongly recommended to abstain from opening a live trading account with InstaForex, not to mention depositing funds (which is equal to losing them).
This not the first scandal around InstaForex. Not so long ago, Tataurov Sergei, a former client of InstaForex, won a lawsuit against InstaForex, which tried to ban him from publishing the video footage covering the fraudulent actions against the trader in the trading terminal!
Instaforex used to be promoted as Asia’s best Forex broker. However, later Malaysia banned the company’s activity on its territory. The UK, the USA, France, Bulgaria and Turkey did the same! This is not accidental! InstaForex is the leader in terms of complaints. It is the leader of the black list!
According to Denis Peganov, CEO of FхOpen NZ, such scandals damage the image of the entire Forex industry since people get afraid of losing money and cannot tell honest and fair broking companies from scams. According to RVD Markets, the only way to avoid such risks is to choose a broking company with transparent operating schemes and licenses given by major financial authorities! Apparently, there are reliable and fair broking companies! Be careful when choosing a broker and good luck to you!
