The concept of trading financial instruments is not a new one, but its popularity has risen significantly in the last couple of decades. The global COVID-19 pandemic also resulted in a massive influx of people in the financial markets and this has pushed up the demand for online brokers. There is no shortage of trading platforms, but this doesn’t mean that all of them are reliable. Scam brokers have also become rampant and this has created a major problem. Which category does VadervFX fall into? The only way to find out is through a VadervFX review.
Not doing your due diligence can set you back in the long run because you will end up leaving yourself vulnerable to cybercriminals. You can minimize your risks by checking out a broker thoroughly, just like in this VadervFX review. It is portrayed as a trusted global brokerage that offers forex and options and provides its clients with the popular MT4 trading platform. Moreover, they also promise lucrative returns for the users and this often convinces people to invest hurriedly.
However, this is not the way to go and you need to know before you move forward if it is a scam broker or not. Let’s explore its offerings:
Regulation and Licensing
The first thing you need to look at in order to determine if a particular broker is a scam or not is their licensing and regulation. If you take a look at the VadervFX website, you will find that they claim to be licensed by FINMA, the Swiss financial watchdog. According to the brokerage, a company called Vader International Limited owns and operates it, but there is absolutely no information provided about it. You will not find any address or a contact number for the company.
The only information that you will find is their claim of being regulated by the Swiss financial authority i.e. FINMA. However, if you follow up and run VadervFX’s registration number in their online registry, you will not find them. This means that the broker is making false claims about their regulatory status, which means they are not legitimate and are only misleading their clients to scam them.
It is a given that you want to make profits via trading, but anyone who enters this space is aware that there are risks associated with it as well. There is no way to guarantee profits, yet VadervFX is promising returns to their clients as high as 95%. Not only is it not possible for anyone to promise returns, the amount that the broker is promising is extremely high. Even the most successful investors in the world cannot make such returns, as they are just not feasible. This is another clear indication that VadervFX is only trying to lure people to their platform with tall promises and you will not be able to get your money back once you have deposited with them.
You can find the trading conditions offered by VadervFX by trying out their demo account and when you do so, it becomes apparent that they are offering a spread of 2 pips for the EUR/USD pair. These spreads are very high, which means your cost of trading is also going to be high. Of course, you do not want that. Secondly, they have claimed on their website that 1:100 leverage is provided to traders, but in reality, the leverage goes as high as 1:500. Some might see it as an advantage, but it also means that your risks are quite high.
Another complication with VadervFX is the fact that they have not provided any information about their supported payment methods on their website. You will only be able to find out what they are when you sign up and open an account with them. This is not a good sign because reliable and legitimate brokers are usually transparent about their offerings.
All of these details are warning signs of a scam, so it is best to not use VadervFX for your trading needs.