Novoideal review – 5 things you should know about

Novoideal review – 5 things you should know about

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


Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.


Novoideal tries to convince that it is a highly regulated broker offering favorable conditions for beginner traders. These claims seem very dubious even at first glance because Novoideal’s website is of very poor quality and lacks basic information and functionality. Fact checking quickly reveals that this website is in fact not a broker at all, but a low-effort scam.


The first warning sign is that nowhere on the website is the name of the legal entity behind Novoideal mentioned. This is basic information that is required of any legitimate business, let alone a broker who wants you to trust him with your money.

The website also lacks any legal documentation. While signing up for an account requires agreeing to a User Agreement and Refund Policy, the links to them lead to a “page not found” error.

In the footer of the website, one can read the claim that the unnamed company behind Novoideal “operates under the requirements of the Cyprus Securities and Exchange Commission”. But there is no licensed broker with the registration number indicated by Novoideal in the register of the Cypriot regulator.

Two other supposed licenses are mentioned in the same place – from the International Financial Services Commision (IFSC), which is not specified to be the Belize regulator, and the Financial Services Commision of Mauritius. However, Novoideal is not listed in the databases of these institutions either, so it is apparently not even registered in these offshore jurisdictions.

In another section of the website, a list of “partners and regulators” can be seen, which includes a number of other respected institutions such as Financial Conduct Authority (FCA) of the UK, Commodity Futures Trading Commission (CFTC) of the US, South Africa’s Financial Sector Conduct Authority (FSCA).

This list also mentones some other institutions that do not deal with regulation of brokerage firms at all, such as Australian Transaction Reports and Analysis Centre – the financial regulator in Australia is actually called Australian Securities and Exchanges Commission (ASIC).

However, no evidence can be found in any regulatory authority that a licensed broker is behind the Novoideal website. In fact, one of the leading regulators, the Swiss Financial Market Supervisory Authority (FINMA), has even included Novoideal in its warning list for unauthorized entities:

So the claims on the Novoideal website are obviously a lie. If you want to start trading in the financial markets, you should avoid such dodgy sites full of false information. Instead, it is advisable to approach one of the licensed brokers that are truly regulated by institutions such as CySEC.

There are many advantages to working with such brokers because they must comply with all the requirements of the he European Securities and Markets Authority (ЕSМА). They must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. Whenever clients deposit money in their trading accounts, it is kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy.

All brokers licensed in Cyprus are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. Cypriot forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.


After registering an account, it becomes clear that Novoideal only has a fairly basic web trading platform. Order placement features are blocked if there are no funds in the account. Here is what the platform looks like:

While the platform appears to have the basic features for placing orders and customizing charts, it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.


Novoideal claims to offer three types of trading accounts – “Amateur”, “Trader” and “Investor”. However, there is a “trader calculator” on the same page as the account descriptions, that lists other account types – Standard, Gold and Bitcoin. Such inconsistencies are common on scam websites.

The minimum deposit specified for an Amateur account is 150 USD. There are many legitimate brokers that offer accounts for beginner traders with even lower minimum deposits.

Nowhere is there information about spreads and commissions. The trading platform shows very low spread levels of about 0.2 pips. But since scammers like Novodeal don’t actually offer real trading, these values have no practical meaning.

Leverage between 1:100 and 1:500 is listed for different account types. This alone proves that Novideal could not possibly hold the licenses it claims.

High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. EU regulators and UK’s FCA  limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. In the US, the maximum limit is slightly higher at 1:50


There is no indication on Novideal’s website what payment methods it uses. After creating an account we get access to a deposit menu, which has only one option – Bitcoin:

Scammers prefer cryptocurrencies because these transactions are not subject to refunds. While there are some legitimate brokers that accept Bitcoin, they do so alongside other transparent payment methods such as credit/debit card, bank transfer or popular e-wallets like Skrill, Neteller or PerfectMoney.


The online space is full of ads promising easy money. They sound too good to be true, because they are not – they are outright scams. Many of these fraudsters pose as brokers and take advantage of the general public’s ignorance of the capital markets.

If you give your contacts to one of these scammers, they will start convincing you that they will multiply your money, with nothing required of you but to sit back and take profits. If you agree to an initial investment of a few hundred dollars, they will start persuading you to invest more and more.

But you will never get the promised profits or the money you deposited. Scammers have many ways to ensure this. First of all, they are hidden behind offshore companies, not subject to controls and regulations. For the money transfers they use shady payment platforms, direct bank transfers or cryptocurrencies that make recovering money very difficult and often impossible. The terms and conditions are always riddled with traps that also block your ability to withdraw your money, such as prohibitively high minimum trading volume requirements or withdrawal fees amounting to tens of percentages of your funds.


Recovering money you have given to fraudsters is difficult and often impossible. Fraudsters always want you to provide them with documents such as a copy of your ID and proof of address so that they can claim that it is a legitimate transaction, agreed voluntarily between both parties. If the transaction is made by credit or debit card, you can request a cashback and hope for the best, but transactions via wire transfer or cryptocurrencies are not refundable.  It is important not to trust online offers from people who offer to recover your money in exchange for an upfront payment, because this is also a well-known scam.

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