Abstract：While the forex market is becoming more regulated, deceptive brokers have also started finding new ways to scam investors.
Generally speaking, it may be hard to get benefits from a financial intermediary which adopts detrimental techniques to defraud you. Here, we bring your attention to one of the fraudulent brokers - Videforex.
Videforex - A Quick Overview
Videforex is an offshore broker based in the Marshall Islands. Founded in 2017, the company claims to be the brand name of INVOLVA CORP, having regulations from the Marshal Islands Registry. According to the broker, it specializes in Forex, CFD, and options trading. The company also claims to have attracted over 5,000 customers worldwide while boasting over $3.7 million in trading volume. The broker offers a web-based trading platform and entices clients with unique bonus offers, trading contests, and referral payouts.
Is Videforex Regulated？
No, Videforex is not regulated. The broker claims to have regulations from the Marshal Island Registry (IRI). However, the registration has been annulled on 27 May 2022, according to the IRI register. It is worth mentioning here that IRI neither issues licenses to forex brokers nor regulates forex-related activities. The broker isn't registered or regulated anywhere else either.
Videforex holds poor clientele feedback. The company receives critics for its withdrawal issues, ambiguous trading terms, and conditions, unjustified account closure activities, false information on the website, etc. Clients have repeatedly reported the broker's shabby activities on various platforms, including WikiFX. Let us share some screenshots showing investors' views about the company.
How Does Videforex Scam Clients？
As soon as you visit the broker's website (https://videforex.com/), an advertisement pops up, instigating you to check out new deals and promotions and claim your rewards. Further, the company frequently hosts trading contests and organizes giveaway events to entice customers.
Those trading financial markets for a while aren't likely to get carried away with these sorts of publishing. But newbies might be unable to help themselves from falling into its trap.
According to clients, when you sign up with the broker, the company starts following up. The broker makes false promises, luring you into unrealistic profit-making deals, and asks for deposits. When clients add funds to their accounts, the company lets them access its customized web-based trading platform and start trading.
Since the broker manipulates pricing, everything seems to work in your favor. However, when you send a request to withdraw, the company surprises you with new withdrawal rules and makes it hard to talk to even to customer service representatives.
Why do we believe Videforex is a scam broker？
First, it is an unregulated offshore entity with little or no information about its inception, licensing, or safety of clients' funds, trading conditions, spreads and commission, available leverage, etc.
Secondly, the broker's website appears more like an advertising platform that keeps fascinating clients with enticing rewards and promotional deals.
Moreover, the broker doesn't provide access to third-party trading platforms like MT4/MT5. It appears that if the company wants to have more control over clients' trades for price manipulation.
Lastly, there must be something fishy about the broker that 73% of clients have denounced signing up with it.
Since new brokers keep populating the forex market, it sometimes becomes hard to find a legitimate intermediary. However, you can take some precautions to avoid signing up with a fraud entity, by checking a broker's regulation and reputation on WikiFX. Typically, brokers overseen by top-tier regulators, such as UK FCA, ASIC, and CySEC, are considered more reliable.
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