Beware! VaderFX 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.
We are reviewing VaderFX, an obscure Forex broker that can’t even present its services correctly. From the information given on the website, customers can’t understand anything about their business whatsoever. Otherwise, the broker provides MetaTrader4 accounts, which is generally a plus, but not in this particular case. In fact, VaderFX is a scam scheme, and you will see why we claim so in the full review.
VaderFX REGULATION AND SAFETY OF FUNDS
VaderFX claims to be supervised by “the British FINMA”, which is a laughable statement and strong evidence of a scam. The regulator mentioned above oversees the Swiss market, not the British one, so VaderFX is apparently trying to deceive the public while falsely presenting itself as a legit entity. Anyway, we researched both authorities’ registers but couldn’t find anything about such a broker. Your funds are not safe if you deposit with VaderFX because it’s a scam.
Put this fraudulent scheme aside and see the high-rated EU brokers and British brokers on both lists provided. The companies enlisted are strictly regulated, maintaining the highest customer protection standards enforced by the European regulators. The brokers are also covered by the deposit insurance funds laid down to protect clients’ money. Each EU member is bound to operate such money protection schemes and if you trade with CySEC regulated brokers, you can claim up to 20 000 EUR. The British guarantees are even greater- up to 85 000 GBP per person. The shady unregulated offshore brokers not only can’t secure any protections but will most likely scam you, so make sure to stay away from unlicensed financial businesses.
VaderFX TRADING SOFTWARE
VaderFX offers MetaTrader4, but their distribution is not secure at all. According to the EUR/USD chart, the pair’s price went below 1.10 in February and March, which didn’t happen in reality, and we can reasonably accuse them of price manipulation. It could have been a software error, but this doesn’t change anything for traders. In both cases, traders with long positions would have lost their deposits. You can find more information in the picture at the bottom of this section.
Now, we can offer reliable MetaTrader4 brokers and MetaTrader5 brokers, which are topping both lists. MetaTrader features advanced trading tools such as Expert Advisors, complex indicators and first-class charts. The clients can also take advantage of more than 10 000 apps in the MetaTrader’s marketplace.
The EUR/USD spread is floating around 2 pips, which is a tolerable Buy/Sell difference, but as already explained, the VaderFX’s MT4 distribution is highly fraudulent, so it’s not worth wasting your time with this broker. Generally, tighter spreads make trading more affordable and improve profit potential. The FX market is bustling with reputable brokers offering a Buy/Sell difference of 1 pip and below, and you can see some of those companies by following the links provided throughout the review.
The maximum possible leverage is 1:500, which is a ratio that’s too risky for retail traders. 1:500 turns trading into gambling because the opening price is very close to the stop-out level, and the trade executed actually becomes an all-or-nothing option. Prior to the leverage regulations implemented, more than 90% of the traders were losing money on the market due to the increased risks.
After the regulators’ intervention, the EU, British and Australian brokers have to limit their clients to 1:30 for FX majors, while the Canadian brokers and the US brokers can’t offer more than 1:50. Most of the high-leverage FX companies are poorly regulated and very likely a scam, so be cautious.
VaderFX DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with VaderFX is seemingly $100, but we can’t validate this information. As already mentioned, they fail to give comprehensible details about their services, and you can see what we are talking about if you look at the picture at the bottom of this section. The funding methods are also unknown.
While talking about deposits, see the high-rated Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers on the lists if you have trusted payment systems. The companies topping the lists are adequately regulated, and you won’t encounter scammers.
The rest of the trading provisions such as withdrawal requirements, fees, bonuses and so on are also undisclosed. That’s because VaderFX doesn’t even hand legal documentation over, which also makes their business illegal. To form a licit relationship with brokers, clients need to sign documents serving as contracts between both parties. Well, there are none in this case, which is another proof that VaderFX is a scam!
Overall, VaderFX is an unregulated broker, which we exposed as a scam scheme. Make sure to stay away from this broker and report immediately to the authorities if they approach you.
HOW DOES THE SCAM WORK
Internet is plagued by fraudulent ads and deceitful social media profiles, promising get-rich-quick schemes, and it’s tempting to at least have a look.
If you click on and submit your e-mail and contact numbers, scammers would ring you immediately. Those people are seasoned manipulators and would continuously try to entice you into their crooked games while having a conversation over the phone. You’d be offered bonuses, promotions, risk-free offers, bitcoin deals and anything else you could possibly imagine. Scammers would claim to work with highly reputable businesses, banks, governments and so on while pushing you to start investing with them. At the same time, they’d try to get close, pretend to form a friendship and eventually may even become aggressive.
Nevertheless, the first deposit is just the beginning. Gradually scammers would carry on asking for more money from you no matter what. If you lost on the market, they’d persuade you to put more money and recover the losses. If you traded well, they’d convince you to put more money and increase the profits. The troubles start when you ask for a withdrawal. The scammers would do anything to discourage you and would even ask you to deposit even more funds if you want to withdraw. The scammers’ mantra is “give me your money”, they’d demand from you to fund your account over and over again for no obvious reason. Urgency is a treacherous sign, so if you receive a call and someone starts pushing you to begin investing ASAP, that’s very likely a scam, and you should remain suspicious.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If you get scammed, the first thing you need to do is to protect yourself from further risk. Deactivate your card immediately, contact your bank and ask for advice.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!
Rich Snippet Data