ROinvesting is a Cypriot Investment Firm offering online investments in both CFDs and forex. They have a passable asset selection and offer the standard 1:30 leverage. Their spreads aren’t very good, over double what traders are looking for. In addition to their lousy spreads, the broker has a history of CySEC violations and has even changed their name recently in an attempt to avoid their negative reputation. We strongly recommend that any traders avoid this broker entirely, as they present too high a risk for too little reward.
What Is ROinvesting?
ROinvesting is one of the trading brands of the company Royal Forex Ltd. They established the broker in 2017. The company’s headquarters is in Cyprus. As a Cypriot broker, ROinvesting maintains a current CySEC license as a Cyprus Investment Firm. At one point in their operations, ROinvesting was instead called GMO Trading. The company changed the broker’s name, possibly to avoid the negative reputation that the broker had developed.
Many former clients have accused GMO Trading of ripping them off. They claim that the broker was operating as a scam and that they were not allowed to withdraw funds that they believed they had a right to. Furthermore, former clients complain that the broker will not stop calling them. They say that the calls from the broker were constant, always pressuring them to invest more. Many of the past investors with GMO Trading say that calls continued well after they had closed their accounts. With this kind of information available on GMO Trading, it is not surprising that they changed their name to ROinvesting.
Another Broker From Parent Company
Aside from ROinvesting, Royal Forex Ltd also operates another broker, Royal Forex. This broker has roughly the same offerings as ROinvesting, but there are a few differences. Royal Forex began operations in 2015 as the first broker from Royal Forex Ltd. One unique offering from the broker is the lack of a minimum deposit requirement. Instead of the standard $250, traders can open an account with any deposit, even just $1. Of course, traders do have to deposit enough to open a position if you want to actually start trading. The spreads here are better than at ROinvesting, with about 1.4 pips on the EUR/USD pair.
An interesting note is that there are numerous reviews online about Royal Forex, not from clients but from former employees. The former employees of the broker complain of difficulties with management and a stressful work environment. Furthermore, they complained that they were uncomfortable with how much pressure they had to apply to their clients over the phone. It seems as though the organization had its representatives push further investing very strongly.
Huge Settlement With CySEC
Royal Forex Ltd, operating ROinvesting and Royal Forex, settled with CySEC to pay a fine of €270,000. They reached the settlement in August of 2020, but the regulator did not release their statement until October 2020. The reason for the fines was possible violations of the 2017 Investment Services and Activities and Regulated Markets Law. Before issuing the fine, CySEC completed a detailed investigation of ROinvesting and its operations.
In particular, the investigation focused on the period between January 2018 and December 2019. The event that set off the investigation was inside information that CySEC received in August 2018. The financial regulator carefully monitored the actions of ROinvesting to gauge the extent of their noncompliance. Eventually, the financial regulator gathered enough evidence to merit an internal inspection. In March of 2018, the regulator undertook an onsite inspection of ROinvesting trading operations. The information that the regulator gathered during their initial investigation and the following inspection gave them a reason to believe that the broker was guilty of noncompliance with multiple articles of the law. In the end, ROinvesting reached its €270,000 settlement with the regulator.
CySEC’s report on the settlement cited numerous specific violations. Firstly, the broker was found to be in noncompliance with Article 5(1) of the law. This article spells out the requirements for maintaining Cyprus Investment Firm authorization, meaning that the broker must have failed to meet some of those requirements. Furthermore, the broker was in noncompliance with Article 22(1), an article highlighting organizational requirements. Because of the complexity of operating a broker, these requirements are very strict.
Noncompliance with Article-24
In addition to the preceding articles, ROinvesting was also in noncompliance with Article 24. This is a very important part of the law, defining the applicable boundaries for conflicts of interests. It is of the highest importance that a broker does not have conflicts of interest. Because their clients trust them with their funds and investments, a broker cannot be in a position where they could stand to gain from disseminating bad trading advice or otherwise acting dishonestly.
Lastly, the broker was in violation of Articles 25(1) and 25(3). These parts of the law defined the responsibility of brokers to provide adequate and timely information to clients. It has become increasingly more common for online CFD and forex brokers to intentionally avoid giving out important information to their clients. Many brokers do so because they believe their clients will invest less if they have a better understanding of the risks involved.
Despite the broker abandoning the name GMO Markets and moving on as ROinvesting, their reputation seems to have followed them. The majority of online user reviews about this broker are very negative. A lot of their former customers complain that they lost their deposits to fees and withdrawal issues rather than through bad trades.
The same complaints that clients had about GMO Markets are echoed in their ROinvesting reviews. They say that the broker is still extremely aggressive through their phone representatives. Many former clients feel that they faced immense pressure to constantly deposit more money, money they ultimately lost. In the end, it seems that the broker should have been changing their tactics instead of their name.
Our ROinvesting review took a closer look at the different account types that the broker has to offer. There are three accounts, Silver, Gold, and Platinum. It takes just $100 to open a ROinvesting account, a bit less than with most comparable brokers.
The Silver account includes the broker’s base offerings. Traders that opt for a Gold account will receive a few perks. They get a swap discount of 25%. In addition, they get a dedicated account manager. Unfortunately, these account managers are the representatives that so many former client reviews complained about. They are reportedly very pushy and not focused on giving quality advice, just driving up trade volume. The broker also advertises that Gold and Platinum accounts can be eligible for professionals. A trader that meets the professional account requirements will have access to leverage of 1:500, instead of just 1:30.
On the other hand, the Platinum account doesn’t seem to have as much to offer over the Gold as the Gold did over the Silver. Users are given access to a virtual private server (VPS). A VPS runs trading software on an offsite computer, allowing traders to run automated trading tools without having their own computer running. A VPS is typically better situated to make trades faster as well, reducing slippage. The Platinum account increases the swap discount to 50%. Finally, the Platinum account gives traders “customized investment news.” Overall, it seems like most traders would choose Gold instead.
Assets and Spreads
Our ROinvesting review shows their asset selection to be roughly the middle of the road. They have about 40 currency pairs available. Their CFD options are fairly diverse and cover many different assets. ROinvesting investment options include CFDs on shares include many major companies worldwide. The broker has all of the standard commodity and index options. In addition to these, the broker has an above-average cryptocurrency CFD selection and even CFDs on ETFs.
On the other hand, the spreads they have on their selection are truly awful. With a Silver account, the spreads run around 2.8 pips for the standard EUR/USD pair. This is over double what any trader would expect to pay. The spreads do improve as investors climb the account ladder, but not by enough. Despite the massive minimum deposit requirement, a Platinum account still has the spreads as high as 1.8 pips. That’s higher than most other brokers’ base account spreads.
ROinvesting offers traders the popular MetaTrader 4 platform. The features of the platform are the same here as they are anywhere else. Multiple chart windows and other advanced charting tools make it easy for traders to evaluate their options. Furthermore, platform alerts and other indicators facilitate trading. Traders with many online brokers have come to know MetaTrader 4 as the industry standard.
In addition to MetaTrader 4, the broker also has WebTrader available. This browser platform is quicker to access but lacks most of the features of MetaTrader 4. There just aren’t enough options for a truly customizable trading experience. Traders can access MetaTrader 4 through desktop and mobile apps, so there is little to no reason to choose WebTrader.
The broker staffs their customer contact lines for ten hours each day, from 7 am to 5 pm GMT. Customer support is available every day of the week. Clients can reach the broker through phone, email, or their website’s live chat feature. There is also a contact form on their website to request a callback. Support is generally quick to respond during working hours, but unfortunately, there are no 24/7 support options.
Fees and Withdrawals
One of the biggest downfalls that our ROinvesting review has uncovered is the broker’s excessive fees. Because brokers want to encourage trading, many of them use inactivity fees to stop traders from staying still too long. ROinvesting’s inactivity fees are far beyond too high. After two months, the fee starts at $80 per month. After another month, it’s $120. At the six-month mark, the fee is $200 per month. And once a client reaches 301 days of inactivity, they face a charge of $500 per month.
As if that isn’t enough, there are more fees. The broker has a withdrawal fee of $50 for every withdrawal. Depending on how much you want to withdraw, this could essentially lock up your funds. The broker accepts a variety of payment and withdrawal methods, including credit and debit cards, wire transfers, and popular online payment processors. Their stated waiting time for withdrawals is 2 to 3 business days. Despite this seemingly reasonable wait time, many of their clients have complained of wait times far beyond a few days.
Our Review Findings
We took a closer look at this broker, and we found very few reasons to trade with them. Their spreads are uncompetitive, and they don’t offer anything to offset that fact. Their past trouble with CySEC certainly raises some warning flags. Furthermore, the broker’s name change from GMO Trading appears to have been an attempt to ditch a bad reputation. Client reviews under the broker’s current name seem to show that the broker deserves that bad reputation. It’s surprising that this broker still maintains a CySEC license.
Sign Up for a Chargeback Today
Investors should always thoroughly vet their brokers before putting any money down. Unfortunately, brokers often try to obscure their past through name changes and other means. Sometimes traders end up losing their deposit through no fault of their own. When this happens, you can contact us today to find the perfect chargeback strategy to get your money back quickly.
What Did CySEC’s Investigation Uncover?
The investigation uncovered multiple possible violations of several articles by the broker.
What Did CySEC Do About the Violations?
ROinvesting and CySEC reached a settlement of €270,000 that the broker paid in full.
What Are Their Entry-Level Spreads?
About 2.8 pips, over double what most would consider competitive.
What Are Their Maximum Inactivity Fees?
The inactivity fee increases steadily from $80 per month after two months, up to $500 per month after ten months.