VIPS FX review – 5 things you should know about vipsfx.org

VIPS FX review – 5 things you should know about vipsfx.org

Rating: 1

Beware! VIPS FX is an offshore broker! Your investment may be at risk.

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VIPS FX is a very shady brokerage with touches here and there of a more contemporary approach that gives the whole broker a rather modern vibe. However, nothing VIPS FX does can take us away from the familiarity that the website conveys; we are always aware that what we are dealt with today is another unlicensed broker that tries to hide its nature, not always successfully. The following review is a dive into the main aspects of this broker, so please make sure to go through it before investing.

We first begin by accessing the user area because it’s from there that we get the most accurate trading and payment details. It was not surprising when we discovered that VIPS FX would not allow us to create an account; we never finalized the account creation process because the broker never sent over a confirmation mail. It seems that VIPS FX picks its clients based on how willing they are to invest, as many illegal brokers do.

All the trading details will have to be taken from the website then. This means that the following conditions should be viewed with a dab of skepticism.

The tradeable assets are indicated as commodities, forex currency pairs, and indices. The leverage is capped at 1:500 – the most common offshore value – and the spread is on average 0.5 pips. The cost of trade is surely misleading!

The website of the broker is available in English.

VIPS FX REGULATION AND SAFETY OF FUNDS

The official address of the broker is in the UK. There is no way of trusting this piece of information, and here’s why. In order to be a fully functioning FX broker in the UK there is no way around an FCA license. This agency decides if a company has what it takes to become a fully-fledged FX business. VIPS FX does not hold a license from the FCA, and it never has. Therefore, either the address is completely fake, or the broker is located illegally in the UK.

There are also no legal documents, a huge indicator of the broker’s illegitimacy. Legal docs are crucial to establishing a legal relationship between the user and the broker. The lack of this entails that there is no leal bond between the two parties, and because of this there is nothing stoping the broker from manipulating the user.

We also discovered that most of the website is centered around the home page of the broker, with a few exceptions. This way of doing things is definitely reserved for the more unlicensed broker types.

Overall, VIPS FX is not licensed, obviously, and is a risk to all investors, not to mention that it ti most probably a scam!

Perhaps the most crucial move a user can make in the process of deciding what broker best suits her needs is to ascertain that the broker is regulated, properly, by a legitmate license issuer (there is a rise in fake regulators). Make sure your broker of choice is a UKEUUS, or Aussie-licensed entity; there are other perfectly fine jurisdictions where a firm can be authorized, it’s just that these ones are the most developed in terms of providing the best possible trader security. Moreover, some specific regulators also allow for their regulated brokers to participate in compensation schemes which add a very sturdy extra layer of defense. The FCA guarantees up to £85 000, while CySEC guarantees up to €20 000 per person.

VIPS FX TRADING SOFTWARE

The website promotes some unknown trading software, and it mentions only vague things about it. The ambiguity is to such an extent that it feels like VIPS FX came up with it on the fly. The download link included leads to an MT4 download link revealing an MT4 owned by a different brokers.

We think that if there is a web trader it’s very simplistic in terms of design and delivery of services. Or, there isn’t a trading software at all.

VIPS FX DEPOSIT/WITHDRAW METHODS AND FEES

The home page claims the minimum deposit to be $100. The website of the firms includes images of logos of payment providers – credit/debit cards and some e-wallets-  but there is no way to guarantee that these are the real payment methods.

There is absolutely no withdrawal information anywhere. VIPS FX excludes a lot of important details, and this is one of the main reasons that we do not recommend this broker. The other two are that the firm is unlicensed and that it is a scam!

How Does The Scam Work

We can easily reverse-engineer the scammer process by looking at the whole thing as a series of contained events.

The first of these is falling for one of the thousands of online ads that lead to any number of fraudulent investment websites. The most obvious aspect of such ads is their ability to attract the eye gaze of users since they include glamorous content that we have all dreamed of owning.

Giving in to one of these ads will lead the user to one of two sources: either a so-called intermediary website or the scammer brokerage itself. The former works to introduce the latter, so the principle remains generally the same. The second step ensues once the user provides the crucial contact details that will be used by the firm to solicit funds. Because they are crucial to the scheming process, the broker will put a lot of input into this effort.

The third event is establishing grounds for communication, and a pivotal point for recruiting the user as a depositor. The first deposit is the hardest to sell, and that is why most scammer brokerages have dedicated internal departments whose only job is to entail a preliminary investment.

The fourth even is up to the retainers, or the expert scammers – account managers-, whose job is to keep the user invested as long as possible and to drain as much money out of her. Here is where many, unbeknownst to the user, psychological tricks are used by the scamming experts to really deplte funds from accounts.

The final step is containing the damages,  or to put it in the lingo of the perps- to keep the stolen mon ey with minimal collateral damage. Here is where the scammers get cheap. Many will simply ignore the requests of withdrawals- or simply stall them-, or can shut down accounts and even entire websites for the purpose of keeping what they have stolen.

What To Do When Scammed

Fiel for a chargeback! It’s the surest way to get your money back, although not many scammer brokers allow for credit/debit card deposits. They are aware that users can file for a chargeback, and therefore condemn it by either not including cards payment gateways or by penalizing the client when she files for one. Note that,  VISA and MasterCard have extended their cash-back period to 540 days.

A popular payment method is bank transfer, and here is where things get tricky. Users should contact the bank to help them out if they get scammed, but there is no real guarantee that the banking institution will be able to help them out. Moreover, change your bank account user name and password ASAP should you get defrauded.

Crypto payments are untraceable and are therefore non-refundable. For these reasons, crypto wallets are the favorite means for investing for scammers.

The last point to make concerns recovery agents whose promises will tempt many a victim. Agents or agencies promising some magical way to recover your stolen funds are separate fraudulent entities.

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