Upon organic search for Videforex reviews, the first result to turn up already questions its legitimacy. The opening statement to said review already has the firm looking like a total fraudulent brokerage that every trader should have its backs turned to.
However, what should be noted here is that the review had generalized the brokerages that had come from the Marshall Islands. It had alluded to the trend that such firms are absent of regulation and therefore only sets up low costs to allow easy acquisition of customers. To this cause, Videforex had been likened to questionable brokerages such as CobraCFD and GoldenSky. Despite the presence of offshire registration, the matter stands that transactions or financial businesses in the region are seen as shady by the trading industry as the local authority of the Marshall Islands does not regulate Forex-related businesses.
It might be seen as a sweeping generalization at best, looking for a brokerage firm is not like looking into a basket of rotten fruit. It is so much more complicated than that.
As this is the case, the review team had taken it upon themselves to look hard into Videforex’s services and see if these services are enough to testify against the fraud allegations. This review will be assessing the following facets:
- Trading Instruments
- Trading Platforms
- Trading Accounts
About Videforex
Established back in 2016, Videforex is a brokerage firm based in the Marshall Islands in Seychelles. It is classified as a Market Maker. Much like a number of the brokerages in Marshall Islands, Videforex is not regulated by any financial authority. This already casts doubt on the firm’s legitimacy.
Neither Videforex nor its partners are registered in the United States. It does not provide any form of service in the country either. On top of that, certain features are only available in select areas due to territorial restrictions.
Offers and Services
Trading Instruments
Videforex gives its clients access to five types of assets, namely, Forex currency pairs, Commodities, Cryptocurrencies, Stocks, Metals, and CFDs. The Spreads available through the brokerage are in no way set, being variable depending on the nature and specifications of the trade. Leverage is pegged at 1:100 and no commissions are applicable.
Trading Software
Videforex does not employ any extraneous trading platform. It only offers its own proprietary platform which is available in both web and mobile. This choice to not partner with more trustworthy platforms such as MetaTrader 4 and MetaTrader5 is not at all abnormal. However, it is to the opinion of the review team that it would help the firm’s reputation to enlist platforms of repute. Being associated with the likes of MetaQuotes would invite more traders, hence building the firm up further.
The trading platforms allow instant trade executions, streaming of live charts, the viewing of entire trade history, and access to numerous trading instruments.
Trading Accounts
According to Videforex’s official website, a total of 4,416 accounts are live in its system. To date it had gathered a total of $3,834,724 in trading volume and had released $341,382 worth of payment to its traders.
The accounts available through the brokerage are as follows:
- Bronze
Through this account, a trader is allowed to make withdrawals in 1 hour, is privy to a Copy Trading tool, and is given a bonus of up to 20% and up. In addition, a demo counterpart of the actual account is also available.
- Silver
All the features of the previous account are also available here, the only departure being the availability of an online Master class, a bonus of 50%, and the provision of the first 3 risk-free trades.
- Gold
What make this standout from the other accounts is the provision of a Personal Success Manager and a bonus of 100%.
All three account types are availed of a 24-hour a day, 7 days a week customer live chat support.
Negative Reviews
The review alluded on this review’s introduction is not the only one to accuse Videforex of delving into bad trades or being fraudulent altogether. There are a number of testimonies online that speak of supposed clients being siphoned of all their hard-earned money by the firm.
Reading through these reviews is a daunting task and does invite traders out of their potential desire to enlist the services of the brokerage. It does not help that Videforex is not being regulated by any financial authority, thus factoring into the brewing distrust for the firm.
Trading with Videforex
While the trading conditions discussed through the offers and services provided by Videforex, the matter stands that it would be wise to perform further research about the broker before placing personal stakes.