iFOREX Scam? Yes It Is In My Opinion!
Online FOREX trading platforms are a perfect place for scammers to make millions. FOREX has a huge amount of risk involved in trading even when you are using a reputable company. This makes it easy for unreputable companies to take your money. My subscribers have requested that I take a look at a company called iFOREX. Here is what I have found.
iFOREX Scam Claims
iFOREX was founded in 1996 by a group of bankers and FOREX dealers and is now one of the largest and most respected firms in the industry.
You don’t have to be a professional to trade online.
iFOREX is dedicated to providing its clients the highest level of customer support.
Here is how iFOREX is promoted:
iFOREX Scam Reality
FOREX trading can be legitimate for governments and large institutional investors concerned about fluctuations in international exchange rates, and it can even be appropriate for some individual investors. But the average investor should be wary when it comes to FOREX offers. – Source cftc.gov
There are pages and pages of complaints about iFOREX. It has an incredibly low review rating on many FOREX review sites.
Company Address:
Formula Investment House Ltd.
15 Nikis St. Syntagma Square, 10557 Athens, Greece.
The owners and managers of this business are hidden. iFOREX is not a reputable or respected online trading plateform.
CFDs and spot FOREX trades are not traded under the rules of a recognized or designated investment exchange. Consequently, engaging in CFDs and/or spot FOREX trading may expose you to substantially greater risks than investments which are so traded. One of iFOREX’s subsidiary companies acts as the market maker and principal to all foreign currency contracts executed by you with iFOREX. – Source iFOREX.com
In other words, they are using their own platform and they increase your chances of losing money. Your money is not placed in the market by a legitimate dealer and they keep your loses and commissions. It is in their best interest for you to lose money.
To open a new transaction and trade online with iFOREX, you need a minimum deposit of US$100. The minimum transaction size for a new account is $2,500 (or the equivalent), with up to 400:1 leverage.
If you cannot invest at least $10,000 USD into opening a FOREX account, you likely are going to get a market maker or straight-through processing account. In their disclaimers, you will see that most market maker brokers boldly relate that they will always act in their best interest, regardless of whether it coincides with your best interest. These brokers are called market makers because they make their own markets. In other words, these firms use their assets to manipulate bids, spreads and trades within an intra-company submarket dominated by the firm’s own assets.
If a brokerage tells you that it’s placing your trade order on the open market but your account contract says that the broker makes its money on the bid/sell price, that broker is likely misleading you and is not putting your order on the open market at all. Instead, this type of market maker broker will place your order on an in-house market in which the brokerage can manipulate the bid/sell price to its advantage.
FOREX brokers that do not charge commissions collect profit from speculating on the bid/sell spread. Ninety-nine percent of the time, commission-free brokers are market maker brokers. No one can stay in business by not charging a commission and losing on the bid/sell price, so in most cases, these firms are market makers so that they can control their profits. Some report that FOREX brokers usually only release about 30 percent of their profits to their clients. If you happen to make money on a trade, it is often because the broker’s interest coincided with your bid.
– Source Top 5 Identifying Traits of a Bad FOREX Broker
Here is how the iFOREX scam works:
They get you to make a small investment and help you make a few deals.
They make it very difficult to get your money back.
They then hound you to make a large investment.
With the increased risks of using their unregulated platform you lose your money with additional deals.
“The FOREX chart is controlled by iFOREX team. Even if u win they will alter the market chart and show your investment in profit? loss? Do not trust or invest in this scammed team. Complete frauds. They will tell they are from France but they stay in Srilanka. At the time of investment they will call u 100 times and at the time of withdrawal you wont get any response from them.” – Source Mouthshut.com
“What is the use trading if you cannot withdraw your funds? Withdrawing my money is proving to be a real problem. Despite submitting the required documentation a number of times I cannot get past the standard response of ‘You did not provide the required documentation’. No assistance received form either the account manager or the accounts department to complete the withdrawal.” – Source Forexpeacearmy.com
iFOREX representatives have been known to use highly unethical sales techniques to get people to risk money with their online trading platform.
Here is one example:
While I was reading through and watching video regarding some of the financial terms, My eyes caught an advertisements regarding iFOREX. Which promises to teach how the foregin exchange market works. Having no experience or understanding of this market. I was curious to try it out.
The advertisements said ‘Click here to get your free training’ and all.
I did the necessary registrations giving away my email-id and contact information, while I was sitting on the desk at my workplace.
Today, I got a call from some so called ‘training manager’ under the name Rizwan, who was talking in a rather rudely way. He asked or rather demanded me to go online and open the account on their website. Now when I told him that I don’t want to and not interested anymore the guy starts threatening me by saying they will take legal actions against me. He was forcing on this point that ‘you accepted the terms and conditions on iFOREX.com by which you will have to trade with us failing which I may face consequences‘.
By then I became very furious and hung up. In no second my home number ranged again. when I picked up the call, same guy started talking to me in high tone demanding why I hung up on him!
According to him, the company iFOREX.com has my IP-address and can track me down and make me face legal actions.
– Source therodinhoods.com
You can’t open iFOREX accounts in two of the three countries this scam claims to be licensed in.
Cyprus
United Kingdom – The British Virgin Islands are a territory of the United Kingdom.
Here is the full list of iFOREX restricted countries:
- Afghanistan
- American Samoa
- Argentina
- Australia
- Congo
- Congo the Democratic Rep
- Cyprus
- Eritrea
- Guam
- Guinea
- Haiti
- Hong Kong
- Islamic Republic of Iran
- Korea [North]
- Lebanon
- Liberia
- Libyan Arab Jamahiriya
- Myanmar
- New Zealand
- North Mariana Islands
- Puerto Rico
- Rwanda
- Singapore
- Somalia
- Sudan
- Syrian Arab Republic
- Turkey
- United Kingdom
- United States of America
- Virgin Islands (US)
iFOREX is on the list of online trading suspicious schemes provided by the AMF.
iFOREX Scam Conclusion
In my opinion, iFOREX is a FOREX scam. They use their own internal market maker account to add additional risk to take advantage of uneducated investors. You can’t open iFOREX accounts in two of the three countries this scam claims to be licensed in. They use abusive marketing techniques to cause new investors to invest large amounts of money. Avoid the iFOREX scam.
iForex is a scam. Recently I lost $15000 as I opened a big trade and then I was unable to close it. The market went down and I couldn’t do anything but watch my money go. Also when I tried to deposit $1200, they only returned $200. They said I will get the rest of the money in couple of days but even after 45days I never got it nor are they able to give me any transaction details. They stopped responding to my emails and the customer care keeps telling me that the account manager will call me. This is a big cheating company and don’t trust them.
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Plzzz take some action against them..they are biggest scammeer…. They deducted my 100dollars.. From my account without my authority.. Government should ban it.
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Hi, Myself Raj, I am from India. I have an account in iforex. Recently I noticed that iforex people keep on deducting my money. I am holding few positions, but I am very much active in my account. Initially I was not getting this. But as my amount keep on reducing even having a profitable deals, then I noticed that they are cutting my money.No phone support from evening onwards.I suddenly sent a mail, but no reply. Later after 12-14 hrs of time, Mr Ariyal made a call and when I asked about these things, he told our iforex policy has changed, so we are charging some interest every night on holding positions. I told him you are cheating as these things were not there in trading policies and I warned him that these things I will put in every website, so that people come to know these frauds. What I need to do in this situation. Thought of closing the account, but due to holding position, I lose money. Please help me.
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Anyone ever seen Wolf of Wall Street? Basically, they traded in penny-stocks, to get them addicted to investing. So they don’t have to cashing out for real money they probably don’t have much of. I’ve head of people getting paid in installments through 212 Trading. Scam in my opinion
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I want to add that they recently started to give you credit card details to Chinese scam company under name of GBPAY and that company take unauthorised money from your account so basically they are into criminal activities
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hi eathan shall i join XM traders
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In short; SCAM
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I have open an account with iFOREX hoping that it will give me a lucrative return but eventually I loose all my money.
It seems that iFOREX is controlled by a group of small people who takes advantage of uneducated and unskilled people giving them dreams of high returns.
In addition to that, when I have made profit they haven’t send me back this amount.
Please don’t invest with iFOREX as they are financial thieves……….
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A woman called from Forex offering free consultation. After ignoring any & all human decency in dealing with her, I screamed at the top of my lungs into her ear. Promptly, she hung up, and I hope her day was ruined.
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what the hell! i almost got trapped. but got suspicious when they asked for my card details and coerced to make the deposit immediately. thanks men no wonder they make the calls repeatedly
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You are very welcome.
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I have a ‘real’ account, a bonus-money account.., for fun,and the profit 32 E.. is claimable. I could withdraw my profit by sending in my id-documents and by printing out the withrawal request and send it to a real post adress. But they even haven’t reviewed my id-documents, for two months now.. They don’t respond to e-mails. A bad company, allthough my trades on gold went well..
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Their website suddenly disappeared, it says This domain name expired on Apr 21 2016. Probably they vanished for good. But I won’t be surprised if they come back with another name, it’s pretty normal nowadays, be careful everyone!!!
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Hello Ethan. In the past i commented to you about this company in your youtube channel long time ago. This company is completely a scam. I lost $1,000.00 in this. It is a complete scam. At first you invest a small amount to open an account and you start winning and then an agent starts calling you everyday and sending you ideas by email for transactions. The first few days you start winning and get all excited. This person of course seems to care about you and is really nice. Then when you want to withdraw your money and leave the company they start making excuses and say that you should wait at least a couple of months to see real profits and that you have to get to a certain amount to withdraw, etc. Then they convince you to invest more and when i did this same agent convinced me to do an operation and the next day i lost everything. This agent never appear again and when i called nobody knew him. The name he used was Nelson Diaz and was from Spain. Then other agents called me and when i told them about what happened and was looking for answers they insulted me.
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Thank you for sharing your experience. I hope it will help others.
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i recently opened the account with i forex now after reading your comments i am afraid that i have made a wrong decsion .and they have asked me to submit my documents so please give the suggestion what should i do
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If you funded your account, you will have to give them the documents they want to get your money out of your account. Do not accept a bonus from them or you will not get your money back.
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If you funded using a credit card, you can try writing (not calling) your credit card company requesting a refund (this is called a charge back).
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thanks I was saved by youll…was just gonna make a deposit
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You are very welcome. I am glad you saved your money.
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I lost a huge amount in this fucking broker, i report to cysec and nothing and now to FSC of British Virgin Island, I hope some good respond.
Any advise? or just wait.
Im broke now and a year ago, i did a bad choice with this broker. It was my retirment plan at 25 year old in 2 years to work and in 2 months to trading.
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Since they are an international company there is not much you can do other than report them. I am sorry this happened to you.
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In theory, you could sue them, even in a foreign country, but you are likely to lose more money in legal and filing fees than you will ever get back. You may want to talk to a lawyer (make sure it’s a free consultation), but I’m sure he’ll give you the same advice.
If you used a credit card, however, you can file a chargeback in writing (not over the phone).
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iforex, bforex and what not all they seems scams and people trap. Why international anti-forgery depts not acting against them. They are openly trapping people to steel money.
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The best thing to do? Never give them your personal phone number or your personal data. Don’t trust them. It’s the first thing to do in business. Read reviews, opinions about them. Find out who you are dealing with.
The first rule in business… or mabe, in life 😉
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It is sad that scammers have made the world like it is today.
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Hi Ethan,
This is a lifesaver for me. I was going invest in it. Can you name some legitimate forex trading sites?
Thanks again
🙂
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Here is a list of legitimate Forex trading sites: http://www.investopedia.com/articles/forex/011515/top-usregulated-forex-brokers.asp Please keep in mind Forex can be very high risk investing.
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