Intro
Summary
Videforex is an offshore CFD and forex broker that was established in 2016 and operates on the Marshall Islands. The site suspiciously offers huge sign-up bonuses and 95% earnings in 60 seconds. Videforex is not regulated by any financial authorities, which in our opinion is always a red flag when choosing a reliable broker.
We do not recommend trading with this broker.
We at BrokerChooser care about our users: we want to make sure you have a good understanding of how investing works, and we have reviewed over 100 brokers to help you decide which fits your needs best. We also want to help you to avoid bad experiences. In this article, we highlight a broker that we do not recommend based on the objective research of BrokerChooser’s analysts. Read below to find out which brokers we do recommend!
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| Regulation | No regulation |
| Foundation date | 2016 |
| Annual financial statements published | No |
| S&P credit rating | No |
| Big 4 auditor | No |
| Listed on stock exchange | No |
| Banking background | No |
| Investor protection | No |
Regulation
The legal entity behind Videforex is called INVOLVA CORP and is registered on the Marshall Islands. However, it is not regulated by any financial authority.
We at BrokerChooser do not recommend trading at providers that have no regulatory license.
Main issues
The main issues why we don't recommend Videforex are the following:
- It is an offshore company operating on the Marshall Islands, which is infamous for its lack of appropriate regulatory supervision and regulatory scrutiny. Thus, Videforex is not regulated by any financial authority.
- It provides no investor protection.
- It does not publish annual financial statements, which in itself would not be a red flag, however, it shows that the broker is not transparent.
- It has no banking background and provides no information about its auditor.
- We could find no information about its pricing details.
In our opinion, most of these issues by themselves would not mean that a broker is not reliable. However, when they pile up like this, it should lead you to suspect that the broker is not legit.
How to get your money back
If you get scammed by a broker, you have a few options you can try to get your money back:
- You can turn to your bank and file a chargeback request.
- You can take legal action and issue a so-called Mareva (or freezing) injunction against the company.
- If the broker has a financial regulatory body, you can also report the scam to them.
How to spot if a broker is a scam?
There is a higher likelihood that a broker might be a scam if:
- it is not regulated at all
- it is regulated under a jurisdiction widely seen as an offshore haven (e.g. Vanuatu or St. Lucia)
-
it is featured on a warning list of a top-tier regulator (e.g. the UK’s FCA, or the SEC in the US).
If you would like to know more about scams, how to avoid them, and how to get your money back, read our Forex trading scams page.
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.
