Beware! VVIPFX 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.
VVIPFX is not the brightest scam scheme we have encountered. Their website contains only a few short paragraphs of information and the only way to understand where they are situated was following the breadcrumbs of untranslated text and see what language that was. Not exactly the kind of broker we would be happy to trust our money with. This ‘broker’ literally did nothing right – which means there is no way we would invest anything with them. That is currently impossible too – because registering an account with them comes with conditions we are not able to fulfil. You can read more on that in the review below.
VVIPFX REGULATION AND SAFETY OF FUNDS
There is absolutely no way to understand where this company is situated because they have not provided an address and their phone numbers had a local code and not a country code. So we asked them in the chat.
Not exactly great customer support, as you can see. Later on, they just demanded that we give them our phone number which is definitely not something we wanted to do. Both VVIPFX’s initial answer as well as some parts of the website were in Indonesian so that is our best guess when it comes to the broker’s location. Of course, a legitimate broker would never just leave you guess where they are situated as information about regulations is some of the most important data a broker could provide and probably the first thing a client would look up.
If you want to be sure your funds will be in good hands, you should open an account with a broker regulated by a respected financial authority like the FCA (the UK), ASIC (Austalia) or CySEC (Cyprus). All such brokers are obligated to meet a lot of requirements if they even want to start offering financial services. Firstly, brokers licensed by any of the three regulators have to prove that they hold a certain minimum capital. The size varies depending on the country – A$1 million in Australia and €730 000 in the UK and the EU – but the aim is the same. If some sort of unfortunate event would happen on the market, the broker should have enough capital to prove that they won’t go bankrupt. The stated numbers are more of a minimum – brokers with more clients could be asked by the authorities to hold a much larger minimum capital.
If you are working with an EU or a UK company, you would also be able to claim a compensation if your broker goes bankrupt because all licensed brokers in Europe participate in compensation schemes. The sums are not neglectable – €20 000 for the EU and £85 000 for the UK.
As you can see, the perks of working with licensed broker are far from insignificant. All of the financial authorities named have registers of regulated entities available online and it is easy to check if a broker that claims to be licensed actually is. This only takes a minute but will save you a lot of trouble later. Open an account with someone who is actually following the law and answering to some regulatory body.
VVIPFX TRADING SOFTWARE
Supposedly, VVIPFX uses established platform MetaTrader 4. We could not, however, get access to some sort of terminal because upon trying to register an account, we got this message.
You were supposed to give a name of a company that referred you to VVIPFX which is pretty ridiculous since the broker supposedly wants to attract you as a client. It is not, however, that surprising – they probably only register accounts for people they are sure they could easily scam.
So we could not see how VVIPFX’s MT4 performs but the fact that such a scam broker uses this software should not put you off the software itself. The platform is the second most used in the industry – and it only recently got surpassed in popularity by MetaTrader 5. It offers a ton of great features – from Expert Advisors and a market with a variety of additional trading apps to the ability to subscribe to successful traders’ signals for a small monthly fee – usually between $30 and $50. It is no wonder that MT4 has built such a good name for itself and if you are looking for some good trading software to try out, this one might be for you.
VVIPFX TRADING CONDITIONS
We could not find any information on leverage, spreads, and minimum deposits as the broker did not provide any on the website and we could not register an account. There was some mention of a ‘zero spread’ promotion on some account types (again, not specified) but that was that.
Additionally, when trying to register an account we, of course, clicked on the link to the Terms and Conditions – and it turned out there was nothing on that link. Beware of any broker that does not provide Terms and Conditions or only presents you with a few brief pages – they are most certainly scammers.
VVIPFX DEPOSIT/WITHDRAWAL METHODS AND FEES
We got no data on the deposit and withdrawal methods available with VVIPFX but depositing money with scammers like these is not the brightest idea anyway.
One final red flag we encountered was the mention of a bonus – which no legitimate European, Aussie, or US broker could offer you because bonuses are strictly banned at all of these locations. Upon your first deposit, you could receive a 100% deposit bonus and the turnover you have to reach is not even that crazy compared to what some scammers require – the bonus/4. So if you receive $100, you would have to reach a turnover of 25 times that amount. But we are wary of such bonuses without having read the Terms and Conditions – it might turn out that we have to reach that turnover in order to access our own money too.
HOW DOES THE SCAM WORK?
The way such scams work is usually the same.
You are browsing and you see a banner or an ad for the scammer’s website promising you enormous profit. So you take a look at the website, think it looks good, and register – after all, who would not want to earn money so easily and quickly. And the scammers promise to make an experienced trader out of you in no time. The moment they acquire your contact info, you will start receiving emails and phone calls asking you to deposit. If you do, you will probably see you are making a lot of money soon – a trick aiming to make you invest more.
Time passes, you have made good money and now you want to withdraw. This is the moment the scammers will start making up wild reasons to delay that withdrawal – usually additional taxes. At some point you will start figuring out something is wrong and at that exact moment, the scammers will stop answering your phone calls.
WHAT TO DO IF SCAMMED?
Remain calm and don’t trust any so-called “recovery agents” that say they could retrieve your money if you only paid a small fee. Often enough, these are the same people that scammed you in the first place and even if they are not – that is a whole different type of scam aimed at desperate victims. Your “recovery agent” will disappear as soon as they receive the fee.
What you could do is ask your bank or credit card provider for assistance depending on your deposit method. With credit and debit cards you can file for chargeback within 540 days. Cryptocurrency transactions are non-refundable so don’t trust brokers only offering that payment method. Still, be prepared for the worst since such situations are rarely resolved in a happy manner. If you have verified your account, the scammers might use that as a basis for revoking your claim.
Still, make sure to change any passwords or other sensitive information scammers have received. Notify the authorities and spread the word – in your acquaintance circle and online. You can save a lot of people from the awful situation you might have found yourself in.