AskHi Fitz! I just joined iforex and deposited $500. While waiting for my demo account, I encountered a blogspot of people who tell their experiences with iforex and all of them ended up victims.
Do you know anything about this broker? If it’s really a fraud, why do our investing mentors allow iforex banners to advertise in their website? I read their websites just like yours because I believe you are all there to educate us.
I’m really saddened by this. What will I do now?
One Response to “Is iforex a scam/fraud?”
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Hi Florantina,
iForex is not a scam, they’re actually a legally operating forex broker. However, they’re based in Greece and the British Virgin Island, where there are very loose fiscal regulations.
The people who claim to be victims, in my opinion, are those who lost their money trading forex (because they didn’t quite understand how it works); or those who find their client support and trading platform really poor (which is usually the case).
In general, I recommend forex brokers who have regulations with CTFC and FCM (United States) or FSA (United Kingdom) because your money is safer with them as they are subject to stricter standards for financial services.
Example, when you withdraw your money, US and UK regulated brokers are required to deposit the money to your local bank account within 3 banking days. Other brokers which are in other countries, can delay the process and take up to a month or more before they finally release your money.
Why do I allow them to place banners on my site? Because they’re approved by the Google Advertising Network as a legitimate advertiser. As part of ad terms, to avoid discrimination against entities, I will allow ads to run on my site as long as they pass the standards of Google Adwords.
In any case, so what should you do now?
Call your account manager in iForex and tell him/her that you want to withdraw the money you just deposited because you decided that forex trading is not something you want to do.
Be diplomatic and patient, but be firm with your request. Again, this will take a while, up to a month or so. Be persistent.
Then, if you’re really interested with forex trading, please study first and practice on a demo account before you open a live account (and deposit real money).
There are many online resources about this, one of them is babypips.com which I highly recommend.