AlgoFX Arbi & Arbitrage trading by Grinta Invest Review – SCAM?
- Fund management service using arbitrage
- The minimum deposit is 5000 EUR.
- Profitability is not so high.
- Strange and suspicious service.
Basic information of AlgoFX Arbi & Arbitrage trading
“Arbitrage trading” and “AlgoFX Arbi (by Martin_King)” are fund management services provided by broker Grinta Invest.
* Not an EA, not for sale.
On Myfxbook, two accounts, “Arbitrage trading” and “AlgoFX Arbi (by Martin_King)” are published. Both of these are operated by Grinta Invest.
It is rare for a broker to trade and provide fund management services.
As the name implies, the trading strategy is arbitrage.
Arbitrage is a method of making profit by the price difference between two brokers.
Arbitrage opportunities are when there are relatively large gaps in prices between brokers.
Arbitrage makes a sell entry at the higher priced broker and a buy entry at the lower priced broker. Holds positions in both directions at the same time.
And it makes a profit by closing two positions when the price difference between the two brokers becomes smaller.
The characteristic of Grinta Invest is that the broker itself provides arbitrage.
Evaluation of profitability and drawdown
Arbitrage trading
Operating environment：Grinta Invest
Start：2017/5/2～
（As of July 14, 2020）
| Duration | 38 months | |
| Total rate of return | +194.6% | |
| Monthly rate of return (compound interest) | +3.2% | |
| Maximum drawdown | 0.4% | |
| Win rate | 96.0% | |
| Total number of transactions | 2017 | |
AlgoFX Arbi（by Martin_King）
Operating environment：Grinta Invest
Start：2015/11/22
（As of July 14, 2020）
| Duration | 55 months | |
| Total rate of return | +279.6% | |
| Monthly rate of return (compound interest) | +4.2% | |
| Maximum drawdown | 0.06% | |
| Win rate | 99.0% | |
| Total number of transactions | 1019 | |
Arbitrage uses the price difference, so basically there is no losing trade.
The win rate is extremely high at 96-99%, and the maximum drawdown is close to 0%.
From this result alone, it is a very attractive system.
Characteristics of trading method
As mentioned above, Arbitrage is the basic strategy.
Details of the trading method are not disclosed on the homepage of Grinta Invest.
Certainly it trades for a very small pips width.
Also, because the entry is based on the price difference, the points of entry and exit are not judged by multiple indicators and price movements like the general system(EA).
In the MT4 transaction history chart below, you can see that TakeProfit is repeated with a very small pips width.
■GBPJPY 1H White＝BUY Red＝SELL
The main currency pair in the trade is GBPJPY, and GBPJPY transactions account for 80% of the total.
Performance fee
A performance fee is charged when using this system.
A certain percentage of the profit earned from the trade is allocated to Grinta Invest. Therefore, you do not need to pay the initial cost for using this system.
Performance fee depends on your balance.
Minimum deposit amount
・5000EUR～
Performance fee depending on the balance
- Balance 5000-10000 EUR = 50% of profit per month
- Over 10,000 EUR = 50% of profit per month
First, the minimum deposit of 5000 EUR is too high. The average monthly rate of return is about 3%, and the profit distribution for users is half that amount. It is not a highly profitable investment.
If 10000 EUR can be prepared, the allocation to investors will be 70%, but investing a large amount of 10000 EUR in this system is risky.
Deposit and withdrawal options
The following deposit and withdrawal options are available.
- International bank transfer
- NETELLER
- SKRILL
- Credit card
In addition, when inquiring by email, it seems that Bitcoin deposit and withdrawal is also prepared.
Is Grinta Invest a SCAM?
Grinta Invest is an FX broker, but no detailed information is available. Therefore, it cannot be concluded as fraud.
However, there are some suspicious points:
(1) Agitate the investment
To use Grinta Invest’s fund management services, you will need to email them.
Information such as the minimum deposit amount will be sent.
When I insisted that the minimum deposit amount was too high, I was instigated to invest, “Why is 5000 EUR high?”
Grinta Invest’s support doesn’t seem to be honest.
(2) Not Regulated
Forex brokers usually have financial licenses from some country.
However, Grinta Invest does not have a financial license from any country and is not regulated.
It can be said that the reliability as a broker is very low.
(3) The client area is cheap
You can log in to the client area by registering an account. However, the client area is very poor. Obviously inferior to that of a major broker.
(4) The mechanism by which the broker itself executes arbitrage trade is unclear
Arbitrage in Forex is basically based on the price difference between two brokers.
Grinta Invest is a broker and should be a price provider.
It is incomprehensible how the brokers that provide the prices themselves make profits by using the price difference with other brokers.
It’s a very uncertain business.
Conclusion of AlgoFX Arbi & Arbitrage trading
Arbitrage is basically a loss-free strategy, and everyone is interested in the small drawdowns and beautiful return curves.
However, it is a service provided by an unknown broker.
Investing at least 5000 EUR in such suspicious services is too risky.
If profitability is high, such as an average monthly interest rate of 10% or more, it may be worth taking risks.
However, the expected average monthly rate of return is about 3-4%. In addition, half of the profits are distributed to Grinta Invest. The profit that the investor can obtain is not large.
I do not recommend using this service.
