VIDEFOREX - AI risk analysis

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AI risk analysis - VIDEFOREX (2025-04-29 17:35:30)

Below is a comprehensive analysis of Videforex, operated by INVOLVA CORP, based on the provided criteria, including online complaints, risk assessment, website security, WHOIS lookup, IP and hosting, social media presence, red flags, regulatory status, user precautions, and potential brand confusion. The official website is https://videforex.com/.

1. Online Complaint Information ¶

Online reviews and complaints provide insight into Videforex’s reputation and operational practices. Sources such as Trustpilot, Reviews.io, and forex-specific platforms reveal a mixed but concerning picture:

Trustpilot Reviews (118 reviews as of July 2024,; 105 reviews as of 2022,):
Positive feedback highlights fast withdrawals (e.g., $200 crypto withdrawal processed in an hour), 24/7 live video chat support, and a useful demo account for practice trading.
Negative reviews are significant and alarming:
Users report account restrictions or funds wiped without explanation, with one user stating, “My account was wiped to zero in the background without any clear explanation” ().
Complaints about withdrawal denials, with one user noting they were “turned down” and their account restricted after requesting a withdrawal ().
A user claimed Videforex is a “clear case of customer exploitation” and reported recovering funds through a complaint ().
Videforex.io (a related domain) has 67 reviews, with similar issues, including a user unable to withdraw Bitcoin funds for over three years, threatening to report to the FBI and CFTC ().
Reviews.io (255 reviews, average score 3.58/5 as of December 2024,):
Positive reviews praise real-time market data and pricing transparency for active traders.
Negative reviews include severe accusations of fraud:
One user claimed Videforex is “not a real company” and was warned by the UK’s FCA, alleging the platform steals money via a “cointandem” account to purchase bitcoins ().
Another user reported recovering funds through a recovery agency, TheresachinRecovery INC, after being scammed ().
Other Platforms (e.g., ReportScam.net,; ForexBrokerz,):
ReportScam lists Videforex as a scam broker in 2021, citing negative reviews, withdrawal issues, and illegitimate rules preventing fund access ().
ForexBrokerz reports user frustration with delayed withdrawals (e.g., holding hundreds of dollars for days) and alleges price manipulation, with a sister platform (Raceoption) being “rigged 2 pips off actual market prices” (). Summary: Complaints focus on withdrawal issues, account restrictions, and allegations of fraud, including fund misappropriation and price manipulation. Positive reviews exist but are overshadowed by severe accusations, suggesting high risk for users.

2. Risk Level Assessment ¶

Videforex poses a high risk based on multiple factors:

Lack of Regulation: Videforex is not regulated by any reputable financial authority (see Regulatory Status below). Unregulated brokers lack oversight, increasing the risk of fund mismanagement or fraud (,).
Offshore Operations: Registered in the Marshall Islands (INVOLVA CORP, Nr. 104693), a jurisdiction known for lax regulatory oversight, Videforex operates with minimal accountability (,).
Complaint Severity: Allegations of funds being wiped, withdrawal denials, and potential fraud (e.g., redirecting funds to bitcoin wallets) indicate significant financial risk (,).
High Leverage: Offers leverage up to 1:100 () or 1:500 (), which amplifies potential losses, especially for inexperienced traders.
Binary Options: Videforex offers binary options, a high-risk product banned in the EU and UK since 2018 due to its speculative nature and association with scams (). Risk Indicators:
Unregulated status and offshore registration.
History of withdrawal issues and account restrictions.
High-risk products (binary options, high leverage).
Allegations of price manipulation and fund misappropriation.

3. Website Security Tools ¶

Website security is critical for protecting user data and funds. Videforex implements some security measures, but concerns remain:

SSL Encryption: Videforex uses 264-bit SSL encryption and 3D Secure for payment pages, ensuring secure data transmission during transactions (,).
TrustScam Analysis ():
Videforex.com is not flagged as a scam by TrustScam, and a verification link (http://videforex.com/verify_trustscam_com_24a80198a4ae44abdb911fc79f52cf68.html) confirms some legitimacy in its setup.
No reports of malware, phishing, or spam activity were noted.
Google Safe Browsing and Norton ConnectSafe: No unsafe content or malicious activity reported ().
Limitations:
The proprietary trading platform lacks advanced security features compared to industry standards like MetaTrader 4/5 ().
User complaints about account security (e.g., funds wiped or restricted) suggest internal operational risks beyond website security (). Summary: Videforex employs standard SSL encryption, and no major external security threats (malware/phishing) are reported. However, user-reported issues with account access and funds raise concerns about internal security practices.

4. WHOIS Lookup ¶

WHOIS data provides insight into domain ownership and registration:

Domain: videforex.com
Registrar: GoDaddy.com, LLC (reputable registrar, IANA ID: 146) ().
Creation Date: February 2, 2017.
Expiry Date: February 2, 2024 (expired, but domain remains active as of April 2025, suggesting renewal).
Updated Date: December 14, 2020.
Name Servers: adel.ns.cloudflare.com, woz.ns.cloudflare.com (Cloudflare, a reliable hosting provider).
Domain Status: clientDeleteProhibited, clientRenewProhibited, clientTransferProhibited, clientUpdateProhibited (standard protections against unauthorized changes).
Registrant: No specific registrant details (likely anonymized via GoDaddy’s privacy service). Analysis:
The domain is relatively new (created 2017), consistent with Videforex’s launch.
Use of Cloudflare and GoDaddy suggests professional setup, but anonymized registrant details reduce transparency.
No red flags in WHOIS data itself, but lack of registrant transparency aligns with offshore operations.

5. IP and Hosting Analysis ¶

IP and hosting details provide insight into the technical infrastructure:

Hosting Provider: Cloudflare, Inc. (AS13335, CLOUDFLARENET) ().
Cloudflare is a reputable provider offering DDoS protection, CDN, and security services.
IP Address: Not publicly disclosed in provided data, but Cloudflare’s infrastructure typically uses shared IPs for security.
Location: Servers likely distributed globally (Cloudflare’s network spans multiple regions).
Performance: Videforex.com is mobile-optimized but has slow page loading times, which could impact user experience (). Analysis:
Cloudflare hosting is a positive indicator of reliable infrastructure and security.
Slow page loading may frustrate users but is not a direct security concern.
No specific IP-related red flags, but offshore registration (Marshall Islands) raises concerns about jurisdictional oversight.

Social media activity can indicate legitimacy and user engagement:

TrustScam Note: Videforex has “great visibility on social networks,” which is a positive indicator for trust ().
Specific Platforms: No detailed information on Videforex’s social media accounts (e.g., Twitter, Facebook, LinkedIn) in provided data.
User Feedback:
Negative reviews on Trustpilot and Reviews.io suggest users are sharing scam allegations on consumer protection platforms and online communities (,).
No evidence of active social media campaigns or verified accounts promoting Videforex. Analysis:
Limited transparency about official social media presence reduces trust.
High visibility noted by TrustScam could reflect user complaints rather than positive engagement.
Lack of verified social media accounts is a red flag for a broker aiming to build trust.

7. Red Flags and Potential Risk Indicators ¶

Several red flags and risk indicators emerge from the analysis:

Unregulated Status: Videforex is not regulated by any reputable authority (e.g., FCA, SEC, ASIC) and has been flagged by the French AMF as an unregulated provider targeting French citizens ().
Offshore Registration: Operated by INVOLVA CORP in the Marshall Islands, a jurisdiction with minimal regulatory oversight (,).
Withdrawal Issues: Multiple complaints about delayed or denied withdrawals, with some users alleging funds were stolen (,).
Binary Options: Offers binary options, banned in the EU/UK and associated with scams ().
Lack of Transparency:
No financial statements, auditor details, or pricing information ().
No clear information on spreads, commissions, or trading assets (,).
Suspicious Bonuses: Offers large sign-up bonuses (e.g., $100,000 on a $50,000 deposit) with strict terms, a tactic used by scam brokers to lock funds (,).
Demo Account Restrictions: Requires a funded account to access the demo account, an unusual and risky practice ().
Alleged Fraud: Users report funds being redirected to bitcoin wallets via a “cointandem” account, suggesting potential money laundering or theft ().
Platform Issues: Proprietary platform lacks advanced charting and MetaTrader 4/5, and some users report a dated, unintuitive interface (,).
Bans and Warnings: Banned in France, Spain, and Italy; warned by AMF in 2018 (). Summary: The combination of no regulation, offshore status, withdrawal issues, and suspicious practices (e.g., large bonuses, demo account restrictions) indicates a high likelihood of fraudulent activity.

8. Website Content Analysis ¶

The Videforex website (https://videforex.com/) contains elements that raise concerns:

Claims and Promises:
Advertises up to 95% earnings in 60 seconds and 98% payouts on binary options, which are unrealistic and typical of scam lures (,).
Promotes large bonuses (e.g., 100% on initial deposits), but terms suggest bonuses are trading credits with strict withdrawal conditions ().
Lack of Transparency:
No detailed information on spreads, commissions, or specific trading assets (,).
Claims regulation by a non-existent “IFMRRC” (International Financial Market Relations Regulation Center), a fake regulator ().
Risk Warnings: Includes a risk warning that forex/CFD trading is high-risk, but it’s buried and not prominent ().
Marketing Tactics:
Uses attractive live chat support staff to attract clients, which some find unprofessional ().
Offers giveaways (e.g., tablets, smartphones) and referral bonuses (20% of a friend’s deposit), which are common scam tactics to encourage deposits ().
Platform Description:
Promotes a proprietary platform with web and mobile access, but user feedback notes it’s clunky and lacks advanced features (,).
Highlights 24/7 video chat support, which is a positive feature but overshadowed by operational concerns. Analysis: The website uses aggressive marketing (e.g., high payouts, bonuses) and lacks transparency about fees and assets. False regulatory claims and unrealistic promises are major red flags.

9. Regulatory Status ¶

Videforex’s regulatory status is a critical concern:

No Valid Regulation:
Videforex is not regulated by any reputable financial authority (e.g., FCA, SEC, ASIC, CySEC) (,).
Claims a license from the “IFMRRC,” which is not a recognized regulator and is known for issuing fake licenses to scam brokers ().
Offshore Registration: Operated by INVOLVA CORP in the Marshall Islands, a jurisdiction with no financial regulatory oversight ().
Bans and Warnings:
Banned in France, Spain, and Italy for unregulated operations ().
French AMF issued a warning in June 2018, blacklisting Videforex as an unregulated forex provider targeting French citizens ().
Previous Ownership: Previously owned by Algobit Ltd., a company linked to other banned brokers (AstroFX, OctaveTrade, Binarymate) in the EU and US (). Analysis: The complete lack of regulation, false regulatory claims, and bans in multiple countries confirm Videforex operates without oversight, posing a significant risk to client funds.

10. User Precautions ¶

To mitigate risks when considering Videforex, users should:

Avoid Trading: Given the lack of regulation, bans, and scam allegations, it’s safest to avoid Videforex entirely.
Choose Regulated Brokers: Opt for brokers regulated by reputable authorities (e.g., FCA, ASIC, CySEC) with transparent fees and client fund protection ().
Use Chargeback Options: If depositing, use credit/debit cards (not crypto) to enable chargebacks within 540 days if issues arise ().
Test with Small Amounts: If testing, deposit the minimum ($250) and attempt withdrawals early to verify reliability ().
Research Thoroughly: Check reviews on Trustpilot, Reviews.io, and forex forums, and verify regulatory status via official authority websites (e.g., FCA register).
Beware of Bonuses: Avoid accepting bonuses, as they often come with restrictive terms that lock funds ().
Monitor Accounts: Regularly check account activity and document all transactions/communications for evidence in case of disputes.
Report Scams: If scammed, report to authorities (e.g., FCA, CFTC, IC3) and seek recovery agencies, though be cautious of recovery scams (,).

11. Potential Brand Confusion ¶

Videforex’s branding and operations may cause confusion:

Similar Brokers:
Videforex is linked to IQCent, Raceoption, and other brokers with similar platforms and practices, some of which are also flagged as scams (,).
Previously owned by Algobit Ltd., associated with banned brokers (AstroFX, OctaveTrade, Binarymate), suggesting a pattern of rebranding to evade scrutiny ().
Domain Changes:
Transitioned from videforex.com to videforex.io, which may confuse users or indicate an attempt to reset reputation (,).
Related domains (e.g., videforex.net, videforex.org) listed in WHOIS data could be used for phishing or brand imitation ().
Misleading Claims:
False IFMRRC regulation claim may mislead users into believing Videforex is legitimate ().
Similarity to regulated brokers’ marketing (e.g., bonuses, demo accounts) could confuse novice traders. Analysis: Videforex’s links to other questionable brokers, domain changes, and misleading regulatory claims create significant potential for brand confusion, especially for inexperienced traders.

12. Overall Assessment ¶

Videforex, operated by INVOLVA CORP, presents a high-risk profile due to:

Regulatory Issues: Unregulated, banned in multiple countries, and falsely claims IFMRRC licensing.
User Complaints: Severe allegations of withdrawal denials, account wiping, and fund misappropriation.
Operational Red Flags: Offshore registration, lack of transparency, suspicious bonuses, and binary options offerings.
Website Concerns: Unrealistic payout claims, limited fee/asset details, and a subpar proprietary platform.
Security: Adequate SSL encryption but undermined by user-reported account issues. While some users report positive experiences (fast withdrawals, demo account), these are outweighed by consistent scam allegations and regulatory warnings. The broker’s practices align with common scam tactics (e.g., large bonuses, withdrawal barriers, fake regulation). Recommendation: Avoid trading with Videforex. Choose regulated brokers with transparent operations and strong reputations. If already involved, attempt to withdraw funds immediately (preferably via card for chargeback options) and report issues to relevant authorities.

Citations: -, If you need further details or specific actions (e.g., checking additional sources, analyzing related brokers), let me know!