Videforex

Key Points

• Unregulated Status: Videforex operates without oversight from any reputable financial authority, raising serious concerns about the safety of client funds and the legitimacy of its operations.
• Scam Allegations: Numerous customer complaints and reviews label Videforex as a scam, citing issues like refusal to process withdrawals, account manipulation, and deceptive practices.
• Operational Concerns: The broker is operated by INVOLVA CORP, registered in the Marshall Islands, a jurisdiction known for minimal regulatory oversight. The company’s registration was annulled in May 2022.
• Mixed Customer Feedback: While some users praise fast withdrawals and 24/7 support, the majority report severe issues, including loss of funds and poor customer service.
• High-Risk Trading: Videforex offers high-risk products like binary options and CFDs, with no investor protection and questionable transparency.
• Lack of Transparency: Limited information on pricing, terms, and conditions, coupled with a proprietary platform lacking integration with industry-standard tools, adds to the risk profile.

Overview

Videforex, launched in 2017, is an online brokerage platform offering trading in forex, contracts for difference (CFDs), and binary options. It claims to provide access to over 100 assets, including currencies, commodities, cryptocurrencies, stocks, and indices. Operated by INVOLVA CORP, registered in the Marshall Islands, and previously linked to Vide Projects Ltd. in Seychelles, Videforex markets itself as user-friendly, featuring 24/7 live video chat support, one-hour withdrawal processing, and a proprietary web-based trading platform accessible on web, Android, and iPhone devices. Additional offerings include copy trading, trading contests, and deposit bonuses up to 100%. However, its unregulated status, offshore operations, and history of questionable practices cast significant doubt on its credibility and safety for traders.

The platform targets novice traders with promises of high returns (up to 95% ROI in 60 seconds) and a low minimum deposit of $250. It also provides a demo account for strategy testing and supports multiple payment methods, including cryptocurrencies. Despite these features, the lack of regulation by reputable authorities like the FCA, CySEC, or ASIC, combined with bans in several countries, raises red flags about its operational integrity.

Allegations and Concerns

Videforex faces serious allegations that undermine its legitimacy:

• Unregulated Operations: Videforex claims regulation by entities like the Republic of Vanuatu Finance Service Commission (VFSC) or the International Financial Market Relations Regulation Center (IFMRRC). However, these claims are either unverified or tied to non-reputable regulators. The Marshall Islands Registry (IRI), where INVOLVA CORP was registered, does not oversee forex activities, and its registration was annulled on May 27, 2022, suggesting potential legal or operational issues.
• Scam Allegations: Multiple sources and customer reviews accuse Videforex of fraudulent practices, including refusing withdrawals, wiping account balances, and using manipulative tactics to lure traders. A Trustpilot review states, “They refuse to process withdrawals… I have proofs that they clearly stated that I could withdraw the amount.”
• Banned in Regions: Videforex is banned in France, Spain, and Italy, with the French authority AMF issuing a warning in June 2018 for targeting French citizens as an unregulated provider.
• Connection to Other Scams: The broker’s previous ownership by Algobit Ltd., linked to banned binary options scams like AstroFX, OctaveTrade, and Binarymate, further erodes trust.
• Deceptive Practices: Customers report being enticed with high-return promises and bonuses, only to face stringent turnover requirements or account closures when attempting to withdraw profits. One review notes, “They throw contests on purpose to make you win but require you to put money in first.”

These allegations highlight a pattern of questionable practices, making Videforex a risky choice for traders seeking secure and transparent platforms.

Customer Feedback

Customer reviews of Videforex are polarized, with negative feedback dominating. Below is a detailed summary:

Positive Feedback

• Fast Withdrawals: Some users praise the broker’s one-hour withdrawal processing. A review states, “I recently pulled out a big amount and had it in my account in less than 30 minutes.”
• 24/7 Support: The live video chat support is a frequent highlight. A customer noted, “Within seconds, I was connected to a support representative who quickly resolved the problem.”
• User-Friendly Platform: Some traders appreciate the platform’s simplicity and real-time data feeds. One user said, “The real-time price feed feature… enabled me to seize an opportunity I would probably have not been aware of.”
• Demo Account: The demo account is valued for testing strategies, with a review stating, “The demo environment closely mirrors real market conditions, so I know the results are reliable.”

Negative Feedback

• Withdrawal Issues: Numerous reviews report difficulties withdrawing funds, with excuses like turnover requirements or verification delays. A Trustpilot user stated, “I have been attempting to withdraw my funds for over three years, and despite numerous requests, I have not received any resolution.”
• Account Manipulation: Customers claim accounts were wiped or closed without explanation. One review describes, “After numerous winning trades, I watched in horror as my account was wiped to zero in the background without any clear explanation.”
• Fake Positive Reviews: Several users allege positive reviews are fabricated. A reviewer warned, “Any positive reviews you see about VideForex are fake, this company scams their traders.”
• Poor Interface: The proprietary platform is criticized for being unintuitive, with one user noting, “The interface can be a bit confusing, and I often found myself navigating more than I’d prefer.”

Trustpilot shows a 2.4-star rating, with 68% of reviews being one-star. On Reviews.io, Videforex scores 3.58, but negative reviews dominate, focusing on financial losses and scam accusations.

Risk Considerations

Videforex presents multiple risks for traders:

• Financial Risk: The lack of regulation means no investor protection, and withdrawal issues increase the likelihood of losing funds. High-risk products like binary options and CFDs, with leverage up to 1:500, amplify potential losses.
• Reputational Risk: Association with scam allegations, bans in multiple countries, and questionable ownership damages Videforex’s credibility, potentially affecting traders’ reputations.
• Legal Risk: Operating without a reputable license and facing bans in the EU expose Videforex to legal actions. Traders have little recourse in disputes due to the offshore jurisdiction.
• Operational Risk: The proprietary platform’s lack of integration with tools like MetaTrader 4/5 and reported technical issues (e.g., broken app links) hinder trading efficiency.
• Fraud Risk: Allegations of account manipulation, deceptive bonuses, and withdrawal refusals suggest a high risk of fraudulent activity.

Business Relations and Associations

• Ownership: Videforex is operated by INVOLVA CORP (Marshall Islands, registration annulled in May 2022) and linked to Vide Projects Ltd. (Seychelles). Previous ownership by Algobit Ltd. ties it to other scam brokers.
• Partnerships: Integration with Centobot, a trading automation tool, is noted, but no further partnership details are available.
• Regulatory Claims: Claims of VFSC and IFMRRC regulation are unverified or tied to non-reputable entities, with no evidence of oversight by credible authorities.
• Geographic Restrictions: Videforex does not serve the US or certain regions in Asia and Europe, limiting its operational scope.

Legal and Financial Concerns

• Lawsuits and Bans: Videforex is banned in France, Spain, and Italy, with an AMF warning in June 2018 for unregulated operations.
• Bankruptcy Records: No specific bankruptcy records exist, but INVOLVA CORP’s registration annulment in May 2022 suggests operational or legal issues.
• Unpaid Debts: Customer complaints frequently mention unpaid withdrawals, with losses up to thousands of dollars. One review claims, “I wave goodbye to 2000€.”
• Regulatory Violations: The lack of reputable regulation violates industry standards, increasing legal risks for both the company and its clients.

Risk Assessment Table

Expert Opinion

Videforex poses significant risks due to its unregulated status, offshore operations, and widespread scam allegations. While it offers appealing features like fast withdrawals, 24/7 video chat support, and a demo account, these are heavily outweighed by red flags. The lack of regulation by reputable authorities, combined with bans in France, Spain, and Italy, and a history of questionable ownership (Algobit Ltd.), suggests minimal accountability. Customer reviews highlight a troubling pattern of financial losses, account manipulation, and withdrawal refusals, with negative feedback far surpassing positive comments. The proprietary platform’s lack of integration with industry-standard tools like MetaTrader 4/5 and reported technical issues further diminish its appeal for serious traders.

Pros:

• Fast withdrawal processing (when honored)
• 24/7 live video chat support
• Demo account for strategy testing
• Wide range of assets (over 100)

Cons:

• Unregulated, with no investor protection
• Numerous scam allegations and negative reviews
• Banned in multiple countries
• History of questionable ownership
• High-risk trading products with high leverage
• Lack of transparency in pricing and terms

Cautionary Advice: Traders should avoid Videforex due to its high risk of financial loss, lack of legal recourse, and questionable practices. Opt for brokers regulated by top-tier authorities like the FCA, CySEC, or ASIC, which offer greater transparency and fund protection. If considering Videforex, use only funds you can afford to lose and thoroughly research withdrawal policies before depositing.

Key Citations

• Trustpilot Reviews: Customer feedback on Videforex, highlighting scam allegations and withdrawal issues.
• Global Fraud Protection: Detailed review on Videforex’s unregulated status and scam concerns.
• Trusted Broker Reviews: Analysis of Videforex’s platform and lack of regulation.
• BrokerChooser: Overview of Videforex’s offshore operations and regulatory red flags.
• 55Brokers: Warning about Videforex’s lack of regulation and safety concerns.
• Refund Back Services: Report on Videforex’s fraudulent practices and lack of VFSC regulation.
• BrokersView: Confirmation of INVOLVA CORP’s annulled registration and scam status.
• TradingBrokers: Review of Videforex’s platform features and regulatory risks.