1. Is OInvest a Scam?
OInvest Review for South Africa - Is the Broker Legit, Safe or Scam?
In the modern world of inter-connectivity, the way traders approach trading has also significantly changed. Online brokerages have emerged as the number one option for traders, whether it be Forex trading, stocks, indices or even cryptocurrencies. Online brokerages offer the convenience of trading from wherever one wishes, or even on the go. Many such brokers are operating in the market, combining value with selection and high-quality tools to provide their users with the best trading experience possible.
Brokers can differ from one another on the basis of the number of currency pairs on offer, leverage as well as the regulatory authority they are under. This is why it becomes essential to evaluate the quality of a particular online brokerage before using their services. Because of the influx of fraudulent sites masquerading as online brokerages, it has become even more imperative to check for the legitimacy for each brokerage.
OInvest Website
Overview:
- Minimum deposit: R3500
- Deposit Options: Credit Card, Neteller, Skrill
- Withdrawal Options: Neteller, Skrill, Wire Transfer
- Max. Leverage 200:1 (T&Cs apply)
- Tradable assets: Forex / Currency pairs, Commodities (oil, gold silver), Indices and CFD’s for shares trading
- Regulated by FSCA
Note: Your capital is at risk
Olnvest is a South Africa based broker founded in 2018. Owned by the parent company, Basfour 3773 (proprietary) limited, the company has its head office based in Cape Town. OInvest is one of the few reputed brokers who offer online trading facilities for CFDs, along with other trading instruments, such as Forex, commodities, indices and cryptocurrencies. Popular cryptocurrencies such as Bitcoin, Dash, Ethereum and Ripple, all have markets with the broker. They also put great emphasis on the security of users during their online trading activities. Overall, they promise their users a comprehensive trading solution which takes care of all the trading aspects.
License & Regulations Review
As mentioned before, regulatory compliance becomes a major determining factor for choosing a brokerage. This is due to the number of frauds and scams conducted earlier by a number of fake brokerage sites. It is thus recommended to choose a brokerage which is regulated either by a national or international governing body.
Olnvest is based out of South Africa and is thus regulated by the Southern African Financial Sector Conduct Authority or FSCA. The FSCA (formerly the FSB) is responsible for regulating all non-banking financial entities, ensuring that the entities under its jurisdiction are in compliance with the existing regulatory and legislative directives. It follows the Financial Sector Regulation Act or FSR of the South African judicial system.
OInvest is registered with the licence number 2010/002719/07 under the FSCA.
Registration
The South African version of the site “oinvest.co.za” cannot be accessed from a number of countries, as it is solely meant for South African users. The registration page is simple and straightforward, where users are required to input their first and last name, followed by an email address and mobile number.
Account Types
OInvest has a number of different offerings for their users but their trading account has only one standard type. While the platform itself does not specify any minimum deposit while opening an account, it is recommended to deposit at least R3500 for an enjoyable trading experience. This is probably one of the disappointing aspects of this platform, as brokerages generally tend to offer a number of flexible account types for traders to choose from.
The maximum leverage allowed on the trading platform is 1: 500, enabling users to make the most of their limited trading capital by implementing aggressive trading strategies (T&Cs apply). OInvest has the advantage of offering up to 1: 200 leverage as compared to brokers registered under the EU. This is because of the maximum leverage allowed for European brokers, which has been limited to 1:30 by the European Securities and Markets Authority or ESMA. (T&Cs apply)
Trading Conditions
OInvest offer a number of options to their users when it comes to trading platform such as WebTrader, the infamous MetaTrader 4 as well as their official mobile app for trading on the go. All of the platforms mentioned have access to over 350 trading instruments consisting of 18 commodities like gold, oil and coffee, 50 currencies, 20 indices and 172 stocks.
- Spreads and Leverage: OInvest comparatively offers a wide choice of investment options to their users, including CFDs on Forex, commodities, cryptocurrencies and indices. It also includes stock shares of the world biggest public companies such as Google, Lockheed, Barclays, Apple, ABB, Facebook, Tesla , Tesco, Fiat, Loreal and Amazon. Currency pairs include EUR/USD, USD/JPY, EUR/GBP, AUD/USD as well as minor pairs such as EUR/ZAR, USD/ZAR and USD/INR. (T&Cs apply)
Spreads are kept comparatively low, fixed at 0.9 pips on EUR/GBP pair, 0.7 pips for EUR/USD and 0.8 pips for USD/JPY. For taking part in indices and commodities trading, the spreads are decreased to as low as 0.0007. Popular cryptocurrency pairs include BTC/USD, BTC/GBP, NEO/USD, and ETH/EUR among others, all of which have a floating spread.
Trading Platform Review
As mentioned before, OInvest is compatible with WebTrader, MetaTrader 4 as well as their official mobile app. Each of the platforms are described in brief below.
- MetaTrader 4: MetaTrader 4 is probably one of the most popular and heavily used trading platforms in the community. It can be downloaded straight to a user’s desktop and is equipped with a number of powerful features for increasing user control on their trades. MT4 allows investors to analyse prices and trends, manage their open positions and place trades easily. MetaTrader 4 provides broad technical analysis and easy execution orders , allowing traders to easily recognise trends and establish ideal entry and exit points by using 9 different timeframes and 30 indicators. MT4 also provides three different execution modes, as well as 4 pending 2 stop and 2 market orders.
- WebTrader: WebTrader is a web-based trading platform which is operational without any downloads or installations, requiring just an active device with internet connectivity. Some standout features provided by WebTrader are the trading cubes, visual trends, live analysis and charts. They also provide a demo account for novice users to get acquainted with the system.
- Mobile App: OInvest also offers their official mobile app for “on the go” trading, available in Apple’s app store as well as Google’s Play Store. It allows users to easily manage their open positions and investments no matter where they are. It is compatible with both IOS and Android operating systems, providing all the features of the web trading platform.
Deposits and Withdrawals
OInvest provides several options to users for funding their accounts, as well as for withdrawals. The full details of the options are included in the website’s FAQ page. OInvest accepts deposits using VISA, MasterCard, Maestro, Skrill, Neteller and VPAy. However, requests for withdrawals can only be submitted from the client area of the brokerage.
Demo Account
A demo account can be a great way for novice traders to get the hang of the trading markets and experiment with a number of different trading styles. OInvest has a risk-free 14 day demo account, where users can create multiple demo accounts to test the system out. It includes virtual money as well as all the functions available in real accounts.
Education
OInvest has a separate education page filled with educational resources for their users before beginning to trade. This comprehensive education centre provides information on the basic principles of trading, including eBooks, extensive courses, tutorials, webinars, etc. Providing educational resources encourages users to brush up their knowledge about the nuances of online trading.
Customer Support and Service
OInvest provides customer support via phone or email. All the user has to do is fill out an online contact form and wait for a response which is usually on time. Customer support is available Monday through Friday from 8 am to 8pm SAST. They offer a US based as well as a South Africa based helpline number. The fact that there is no live chat option for users can affect the quality of their customer service responses.
Best Features
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Frequently Asked Questions
There is not anything questionable to be found on their website that may indicate that OInvest is a scam.
2. Is OInvest Legit and Safe?
On paper it appears that OInvest follows the necessary regulatory body, allowing it to operate as a legitimate and safe company. It is regulated under the DSCA of South Africa.
3. Can I Use the Webtrader with OInvest?
As mentioned before, OInvest is compatible with WebTrader as well as MetaTrader 4.
4. Are there any OInvest Testimonials?
Surprisingly there are no testimonials included in their official website.
Conclusion: Should I Trade With OInvest ?
Because of the frequency of frauds in the online Forex market, it becomes necessary to evaluate any choice that one makes before finally committing to it. After evaluating the different aspects of the platform, it’s safe to say that OInvest is a good option available in the market. It offers some features that are readily not available with other similar brokers. It is regulated by a national monetary authority which is always a good sign. The broker offers different account types as well as a live customer service chat and payments in South African Rand. Overall, its a good broker for South African Traders.
Note: Your capital is at risk