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VideForex Review - is it scam or safe?

VideForex Review - Is videforex.com scam or good forex broker?

RATING: 1.3 / 2 REVIEWS VideForex
VideForex is an offshore broker. Your money is not safe.

RECOMMENDED FOREX BROKERS


Trading Accounts & Conditions

 

Account type Minimum deposit Maximum leverage Spread
Bronze $250 1:100 Fixed, from 2 pips*
Silver $1,000 1:100 Fixed, from 2 pips*
Gold $3,000 1:100 Fixed, from 2 pips*

*this is the spread seen in the platform. Conditions may vary for real Silver and Gold account holders.


VideForex is somewhat controversial forex and binary options broker. Their website is focused on the female support staff (which is available via a live video stream) as much as it is on the actual trading offer. We weren’t impressed with quite a few factors about this company, but gave them a few tenths of a point for the creative approach. In this review, we will focus on the spot trading aspect, while leaving the binary options behind.


VideForex Advantages


Live support actually works
We had to test the most unique feature of this broker – the live chat which is available on the front end of the website, as well as within the trading platform. The response time was quite swift and our simple question was answered appropriately. The support representative was happy to answer more questions and in case you were wondering, there was nothing sexual in her behavior. Here is a preview:



Our test interaction with the live support at VideForex


1:100 in leverage

As you can see from the previous conversation, the maximum leverage offered by this broker is the “old standard” of 1:100. Such a ratio is preferred by a lot of traders as it allows taking a significant position and makes calculating the margin requirements very easy. That being said, we must reiterate the importance of formulating a proper risk management strategy before you start trading – over-leveraging can lead to substantial losses.


Accepts various online payments

VideForex accepts deposits from a lot of sources. The list of payment methods includes: Bank Transfer, Credit Card, Neteller, Skrill, Perfect Money, Vload, Bitcoin and other cryptocurrencies. Very few people will be limited by this factor, in case they choose to open an account.


Account can be held in a lot of currencies (incl. crypto)
When creating an account with this broker, one can choose to have an account in one of many fiat or cryptocureecnies. Here is a preview of the full list

 


VideForex Disadvantages


Offshore, unregulated broker

VideForex is operated by Vide Projects Ltd., a company registered on the Seychelles. Generally speaking, offshore brokers aren’t the most credible trading partners, but when you combine this with the lack of regulatory oversight (yes some offshore jurisdictions do have financial watchdogs), you end up with a dangerous combination. The security of your investment with such a company will always be in doubt.


Website doesn’t disclose trading details

This broker’s presentation may attract some clients, but the actual trading environment isn’t described in details. Serious brokers will have the target spreads, leverage ratios, a full list of the assets offered and more.


Web-based platform, which leaves mixed feelings
The way you trade with this broker is typical for a “hybrid” company (one which offers both spot trading and binary options). The interface itself initially looks very simplistic, but advanced charting is available after you click a few buttons. Copy trading is also provided, but given the regulatory status of this company investing in a trader on their platform will be risky (this isn’t a service like HFcoppy, for instance, where you know the third party trader has the same interest as you). Here is a preview:



The default layout at VideForex


A lot of traders prefer having a more functional platform, like MetaTrader4. Despite being quire old, this piece of software has proven itself time and time again. The key features, which separates from the pack is the MQL marketplace, where one can easily acquire a custom made technical indicator or automated trading system.


>>A list of brokers offering MT4<<


Relatively high spreads
When testing the VideForex platform, we saw a fixed EUR/USD spread of 2 pips. This isn’t that competitive with the offers provided by a lot of brokers (although we have seen even worse conditions).


>>Compare some of the tightest spreads here<<


Minimum deposit isn’t that small
One must deposit a minimum of $250 in order to open an account with this broker. This isn’t a massive negative by itself, but definitely a factor we must mention, as it will limit some readers. Be sure to only trade with funds you are willing to loose.


Demo account, only after you deposit
This policy sounds very illogical at first, but given the extensive real-time support service, it seems understandable. Spam is a given at popular live streams of other events, and VideForex will probably not be an exception if everybody can type in the chat.


Turnover required even when not having a bonus
Much like other offshore brokers, VideForex has a bonus offer for all clients. We don’t like pointing these out as advantages, since the terms and conditions often require trading substantial volumes before one can withdraw funds. The rule at this broker is even stranger and literally reads:


“For account without bonus: trader has to reach a 100% turnover from deposited amount, to claim for withdrawal.


For account with bonus: trader has to reach 300% turnover from deposited amount, to claim for deposited amount and profit withdrawal.”


Conclusion


VideForex is an unregulated, offshore forex and binary options broker, which has an interesting way of attracting clients. The trading conditions offered aren’t up to par with the industry averages. On top of that a few of the policies are very inconvenient.


When it comes to the elephant in the room, the way this broker presents its service, it’s no secret trading is an activity predominantly popular among men. Similarly, it is known good-looking people tend to sell everything better. While the live chat support at VideForex only includes attractive women, there is nothing explicitly sexual in their behavior, so there isn’t that much controversy. This marketing strategy may attract some clients, but will also stop others from registering – such an offer simply doesn’t look serious.


An even bigger deterrent for experienced traders will be the lack of oversight. While we stated this in the review, we have to reiterate the importance of financial regulation. When trading with such an entity you will be risking your funds on their word. The opposite of this will be dealing with a broker, overseen by a top-rated agency. One such institution, which we often give as an example is the UK’s Financial Conduct Authority (FCA).


>>Top FCA regulated brokers<<


All the brokers registered with them are subject to a lot of rules, including reporting client activity, providing fair order execution and security for traders’ funds. The latter is done via segregation of accounts – the company doesn’t have full access to the deposits. Furthermore, the Financial Services Compensation Scheme (FSCS) provides protection against the broker going bankrupt. If that were to happen you will be compensated for the funds you have with them, up to £ 50,000.


Here is a summary of VideForex:

Pros Cons
Live support actually works Offshore, unregulated broker
1:100 in leverage Website doesn’t disclose trading details
Accepts various online payments Web-based platform, which leaves mixed feelings
Account can be held in a lot of currencies (incl. crypto) Relatively high spreads
  Minimum deposit isn’t that small
  Demo account, only after you deposit
  Turnover required even when not having a bonus

 

Latest news about VideForex
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Traders` reviews for VideForex

Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

Pros

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Manipulation of price

They're manipulating prices. I've been trading with them for 3 months now and they've been doing the same thing very often. When close to expiry time there's a big jump in the last 3-5 seconds of a trade just 1 tick into negative. Even if their chart shows it should be in profit and send ticket, they send you back this message: "Hello, The charts in the platform represent a 15 sec chart interval, whereas, the prices that are shown in the price box updates up to 3-4 times a sec. The difference between the two methods creates a small difference in the pricing. Needless to say that the expiry is calculated based on the fastest updated price as shown in the price box. The option chart gives a good indication of the price movement but it can’t be used as an expiry or entry verification because of the difference in the calculation method. Thank you! Regards, Julia S. Support"

Marcin 02/08/2019

Where are the reviews

Who are those being swindled? I am looking to hear what all of the users have been saying. Thank you

Shelly Well 01/14/2019
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