Beware! VigoFX is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
There is a certain charm to VigoFX, even when considering the load of info, text, and images the broker presents the user with. In fact, now that we think about it, we are overburdened by everything. Any trader, no matter her level of expertise. will be confused at first. There is a clear overflow of the info pool with the images and logo, and this is the first major issue we noticed. A broker must think of an interface that is as welcoming as it is informative. There are other problems that we encountered with VigoFX. They are discussed in the following review.
The registration form is part of the main home page. This approach to the account creation process is not one that we approve. It takes the professionalism of the registration and makes it seem like an unimportant part of the broker experience, where it actually is one of the most crucial aspects to any brokerage firm.
Just like that, we were live. The user area was a hilarious addition to the website, making us not only giggle but also taking VigoFX trivially. Through there, we went to check in on the web-trading software. We found a 0.6 pips spread for the EUR/USD currency pair. The leverage was capped at 1:200. The platform revealed that users can trade with forex currency pairs, shares, and commodities.
The website of the company is accessible in English, Spanish, Italian, and Greek.
VIGOFX REGULATION AND SAFETY OF FUNDS
The official registered address of the broker is in Saint Vincent and the Grenadines. However, there is no actual regulatory information. With its huge information pool, VigoFX has not taken its time to disclose any details concerning a license. That is because it does not have one. Let us explain why.
Saint Vincent and the Grenadines is the most popular harboring address for illegally operating brokers. Over the years, the number of brokers operating without a license from there has exponentially risen. The nation does have the local Financial Services Authority (FSA) which issued years ago a warning that it does not regulate the FX market. And so all those brokers there offer trading services without a license. VigoFX is one in thousands of companies doing that.
VigoFX is definitely UNREGULATED. There is no proof to suggest otherwise.
There is absolutely nothing one can gain from depositing in an unregulated broker. We urge readers to check for a license prior to investing. The FCA and CySEC are the most popular and some of the best regulators in the world. These two, among other superb overseers, have gained the reputation of being the best through years of regulating some of the world’s top brokers. Watchdogs employ a huge set of rules by which every single broker under them has to abide. They include minimum capital requirements, segregated client bank accounts, the guarantee of funds’ safety, etc. All users under the FCA or CySEC, are eligible for compensation, in case the broker at hand cannot pay its dues. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
VIGOFX TRADING SOFTWARE
We cannot decide whether we like or not the trading software used by VigoFX. On the one side, it seems to offer decent trading options, while on the other, our previous encounters with it have all been connected to some kind of unlicensed broker.
We did notice the presence of pending orders, stop/loss, take/profit, chart customization options, time frames, and technical indicators. But after noticing these features, we realized how little in number they come. The big FX trading softwares have hundreds of features, all there to expand the horizon of trader. This one turned to be very limited.
VIGOFX DEPOSIT/WITHDRAW METHODS AND FEES
According to the user are, the clients can fund an account through one of the following ways: Visa and MasterCard. The minimum deposit is €150. As it always happens with unregulated brokers, there is a clear contradiction between the website information and what is found in the user portal area.
The withdrawal section of the client area reveals that the only way to withdrawal one’s money is to use a bank transfer. According to the Deposit and Withdrawal Policy reveals the minimum withdrawal amount to be $100. There is no mention of any fees or processing times. However, we cannot vouch for the accuracy of the legal documents nor the information as a whole on the website. As we have seen with the deposits, so is the withdrawal info very convoluted.
VigoFX is a typical scammer broker, and all deposits are at a risk!
How does the scam work?
Most fraudulent brokers gain their reputation because of the usage of the scheme, the most popular scheme of all in fact. Its ultimate goal is to steal from users and continue doing so until the users sniff them out, or he or she gives up. The scam follows a number of simple steps, but it is worth noting that many unregulated brokers put their own unique twist on it.
The first step is to bait the user. This happens through the usage of online ads, that appear mostly on social media websites or other similar online sources. The scammer ads are distinguishable by their outrageous promises of wealth and profit through trading, investing, or binary options trading. These advertisements showcase a luxurious life and a care-free lifestyle.
Once a user falls for these tempting clicks, he or she will be asked to provide a telephone number or an email address. Giving these away means that the broker’s first wave of representatives will be contacting you. Their one and only goal is to make one deposit. Furthermore, some brokers choose their targets based on how easily manipulated they are.
An initial deposit means that you are knees deep into the scam. The time has come for the expert scammer, a.k.a the account managers. These are relentless, compelling, and at times charming. They can easily enforce their influence on a trader, and sooner or later this trader will be depositing a second, or third, or fourth time.
At some point during the scam, the user will start getting suspicious as to why she hasn’t been paid yet after only deposit for weeks on end. Every withdrawal request will be met with resistance, and depending on the broker the ways of refusal vary. Some might change your mind and solicit you to deposit more, others might close down the user account, or shut down the entire website. A popular method is to stall until the scammer can completely disappear.
What to do if scammed?
The best advice we can give for those that have been scammed is to file for a chargeback as soon as possible. All credit and debit card companies should have this option on the ready. Note that MasterCard and VISA have extended their chargeback period to 540 days.
Bank transfer payments mean that the scammer can potentially get access to your bank account, so it is crucial to change your password and user name. Another good piece of advice is to contact the bank itself and check with them if they have a ready to go plan for such circumstances.
As for crypto deposits, they most surely are gone. That is what it is paramount to remember never to invest in a shady broker through any sort of cryptocurrency.
A final piece of advice. Victimized users might stumble on recovery agents or agencies, who will promise to get your money back, but not before you pay them a hefty fee. Once the charge is paid, they will sooner or later disappear without helping you even one bit.
