Videforex Review 2023
Based in Marshal Islands, Videforex is an offshore brokerage firm. The company came into existence in 2017. The broker advertises itself as a specialist in foreign exchange, contracts for difference, and options trading. In addition to its reported $3.7 million in trade volume, the company asserts to have registered more than 5,000 customers worldwide. The broker offers a custom-built web trading interface and mobile trading app to explore tradable opportunities across various financial markets. While the company entices investors with unique bonus offers, contests, and referral rewards, the lack of regulation and educational resources makes clients reluctant to sign up. This piece reviews the broker in detail.
Regulation and Security
Videforex is a brand name of INVOLVA CORP, which claims to have registered with the Marshall Islands Registry (IRI). However, the broker doesn’t hold regulations anywhere else.
The company is neither registered with a funds compensation scheme nor offers indemnity insurance. However, it employs state-of-the-art technology (SSL encryptions and 3D secure payment processing protocols) to safeguard clients’ personal and financial data from unwanted access. For brokers with stricter regulation and client fund protection you can compare more brokers here.
Negative Balance Protection
Videforex doesn’t offer negative balance protection. That means clients could lose more funds than they have invested with the company.
Videforex keeps clients’ investments in segregated bank accounts. The company doesn’t use clients’ funds for investment purposes, ensuring investors may access their money anytime.
Is Videforex Available Worldwide?
Videforex hasn’t shared details about its regional offices. Though, its services proliferate worldwide, except for a few jurisdictions, such as Iran, Somalia, Nigeria, Iraq, Afghanistan, North Korea, Japan, Sudan, and the United States.
Videforex offers an in-house built proprietary trading platform for trading purposes. Having no third-party platforms like MT4, MT5, and cTrader on its list of offerings appears to be a significant drawback for clients looking for versatility. Clients can access the company-provided trading platform through a web browser or a mobile phone.
Online trading: Inexperienced and seasoned traders may find the platform’s features user-friendly. Besides a compact design, the platform offers advanced features for purposeful trading. While picking the appropriate financial tool for your needs is simple, searching for your desired tradable instruments is also effortless. Social trading, commonly called “copy trading,” is yet another exciting feature available at clients’ disposal. Thus, you can mimic the actions of high-earning investors and gain knowledge from their trading strategies.
Mobile trading: The company also claims that trading on the go has never been easier than with the Videforex mobile app, which is available for both Android and iOS-based devices. In addition to providing a comprehensive set of tools and functions, it takes your trading experience to the next level. It enables you to trade the broker’s full spectrum of assets, including cryptocurrencies, equities, binary options, and forex. In addition, copy trading feature is also available.
Keeping in view the trading needs of newbies and skilled professionals, the broker offers three account types: Bronze, Silver, and Gold.
Bronze: Well suited for the newbies, the Bronze account offers fast withdrawals (within an hour), 24/7 live video chat support, a 20% welcome bonus, a sample account, and access to the copy trading tool, among other perks.
Silver: Advanced traders may be entitled to the Silver tier’s perks, a 50% first deposit incentive, a couple of risk-free trades, and a web-based master class in addition to those already available at the Bronze level.
Gold: The Gold account is available for VIP traders. In addition to everything available in the Silver tier, the account comes with a 100% initial deposit bonus and a dedicated support manager.
Demo account: A demo account is also available to learn the ropes of day trading. Here you can hone your trading abilities by simulating trades with virtual currency, which will assist you in learning how to formulate a strategy for success. The core objective is to get experience before putting your money on the line.
Note: The broker doesn’t offer swap-free accounts. You can find a broker that does offer swap-free accounts by viewing our other broker comparison page here.
Videforex signing up is as simple and quick as filling up the registration and clicking the submit button. The broker does not compel you to verify your trading account before funding it. However, you must complete the KYC process for withdrawals. Here are the steps you may follow to open an account with Videforex.
1. Click here to start the application
2. Enter your details on the registration page, such as name, phone number, email ID, and account’s base currency.
3. Read the terms and conditions and mark your acceptance to become a registered user.
For the KYC process, clients may use a copy of their National ID card, Driving license, or Passport. A copy of the utility bill or bank statement is also required.
Videforex’s trading dashboard doesn’t have too many options to explore. The company has provided all the necessary tabs on the upper navigation panel. You can access the web terminal from the trading tab, while the account funding tab enables you to add funds or have them withdrawn. Transactional history is accessible via the statement tab. The account settings button allows clients to view, edit or configure their account settings. If you wish to talk to customer support, use the support tab to connect with the company. Bonus offers and accounts referral options allow you to check for any loyalty or referral rewards.
Deposit and Withdrawals
Videforex offers limited funding options, such as Debit cards, Credit Card, and Cryptocurrencies. The minimum deposit to signup with the company depends upon your selected account type. For instance, clients need to add $250 to their account to open a Bronze account. A minimum of $1000 is required for a Silver account, while the Gold account comes for the least deposit of $3000.
Concerning withdrawals, the broker only releases funds to crypto wallets. Since there is no minimum threshold for withdrawals, clients can request any amount they see fit. The company claims to process all transactions as early as within one hour.
Videforex offers tradable assets across various financial markets, such as forex, commodities, shares, indices, futures, binary options, and cryptocurrencies. However, the range of offerings may vary from country to country. For example, crypto CFDs are unavailable in the UK amid FCA restrictions.
Commissions and Fees
Videforex advertises to have a competitive pricing structure in place. The company doesn’t charge any fee on deposits and withdrawals, and there are no account inactivity charges. The company has shared any details on commissions, leaving us unable to quote them here.
Videforex employs dynamic spreads with a minimum spread starting at 0.1 pips on different currency pairs. However, the average spread for major forex pairs like EURUSD stays around 2.0 pips across all its account types.
Leverage involves margin-based trading, where you can borrow funds from your broker to open large-scale positions with fractional investment. Leverage is one of the crucial elements in forex and CFD trading since it can significantly expand your opportunities for financial gain. However, it also magnifies the risk of loss. The broker offers a leverage of up to 1:500.
Analysis and Education
Videforex doesn’t offer any research or educational resources except for a couple of tutorial videos on how to trade CFDs and Binary options. The company doesn’t seem much concerned about educating its clients.
Videforex offers multilingual customer support round the clock, and clients can even contact the company on public holidays. The broker facilitates clients’ queries and concerns via phone, email and live chat. An FAQs section is also available to help clients seek a quick resolution to their issues.
Reputation amongst Traders
Unfortunately, Videforex holds a poor reputation among traders. Clients have accused the company of multiple reasons, such as delayed trade execution, negative balance protection unavailability, lack of educational resources, and unclear pricing structure. After 97 reviews, the company’s rating stands around 2 out of 5 stars on Trustpilot.
Videforex hasn’t earned any award yet. Since the broker is relatively new to the industry, it could be one of the reasons why the company has not been appreciated for its services so far.
Can beginners trade with Videforex?
Yes, beginners can trade with Videforex since it offers flexible trading options, such as forex, CFDs, and Binary options. The simplest form is binary options trading which doesn’t involve detailed fundamental or analytical analysis. Instead, clients only need to predict the right direction of the price of an underlying financial instrument to win trades. However, except for binary options trading, some bonus offers and referral rewards, we don’t think the broker holds any potential to become a top choice for newbies or professional clients.
Videforex is an offshore broker having no regulatory check from a reputable regulatory authority. It neither offers negative balance protection nor holds registration with any funds compensation scheme. Although the company’s signing-up process is quick, clients only have limited options to fund their accounts. The minimum deposit is also a little higher compared to other brokerage firms. There are no third-party platforms available, and the pricing structure also seems confusing. The company doesn’t have any research and educational facility available either. Also, it doesn’t hold a good reputation amongst clients. We believe the broker needs a lot more time to compete with the top brokers in the industry.