Virpoint. Any experiences?

[maccboy]

My mum has 'found' Virpoint, and has started investing with them. I was wondering if anyone had any experience of them. She has invested £250 so far, and says it's now worth £295, in four days. I don't know what she has invested in, and whether they have different options. I don't know anything about them!

[maccboy]

Hmm. I guess that's no-one then. Makes the situation worse!

[Harpoon]

Your Mum is trading CFDs? What's her attitude to risk? 20 out of 10?

Virpoint said:

RISK WARNING: Contracts for Difference (CFDs) are complex financial instruments that carry a high risk of losing money rapidly due to leverage

[maccboy]

Harpoon said:

Your Mum is trading CFDs? What's her attitude to risk? 20 out of 10?

Virpoint said:

RISK WARNING: Contracts for Difference (CFDs) are complex financial instruments that carry a high risk of losing money rapidly due to leverage

Thanks for your reply.
She knows nothing about whatever CFDs are, and neither do I. I have no idea what risk level it is but she's 'made' a good percentage in a short time, which is what she sees.

[mikef]

https://www.reuters.com said:

About VirPoint

Founded in 2020, VirPoint is a UK-based CFD trading platform offering access to multiple asset classes, including equities, forex, commodities, indices, and digital assets. The company integrates AI-driven trading technology with expert human insight, providing clients with a balance of innovation, security, and personalized support.

VirPoint operates under Finstar Technologies LTD, a privately held company incorporated in the Marshall Islands

Can you lend her a bargepole?

link

[flight147z]

With CFD trading can't you end up owing more than you initially "invested", unlike stocks where the worst outcome is that you lose everything but don't owe anything over and above what you put in. Be very careful

[peterperkins]

Try and get the money £295 out now.
Report back on what happens.

[Harpoon]

maccboy said:

Thanks for your reply.
She knows nothing about whatever CFDs are, and neither do I. I have no idea what risk level it is but she's 'made' a good percentage in a short time, which is what she sees.

Seriously, take the profit and run ASAP. She might "only" have £250 invested so far but leverage means she could lose way more than that.

To borrow an article from Trading 212

https://helpcentre.trading212.com/hc/en-us/article...

T212 said:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

[Simpo Two]

maccboy said:

My mum has 'found' Virpoint, and has started investing with them. I was wondering if anyone had any experience of them. She has invested £250 so far, and says it's now worth £295, in four days. I don't know what she has invested in, and whether they have different options. I don't know anything about them!

It's worrying that people can get sucked into this kind of stuff just as they would play online bingo. The reach of the internet + social media is infinite and a lot of people could lose a lot of money.

If I were her I'd check out now with my £45 winnings. Being cynical I'd suggest they arrange for a quick win to trick you into investing more.

[Mazinbrum]

flight147z said:

With CFD trading can't you end up owing more than you initially "invested", unlike stocks where the worst outcome is that you lose everything...

Not if you're a retail client.

[flight147z]

Mazinbrum said:

flight147z said:

With CFD trading can't you end up owing more than you initially "invested", unlike stocks where the worst outcome is that you lose everything...

Not if you're a retail client.

In that case I'd you have a high risk appetite and risk limited capital then it doesn't seem like the worst way to speculate

Wouldn't be doing it in the OPs position though

[LooneyTunes]

Mazinbrum said:

flight147z said:

With CFD trading can't you end up owing more than you initially "invested", unlike stocks where the worst outcome is that you lose everything...

Not if you're a retail client.

Being a retail client won’t help you if the entity you’re trading with isn’t subject to UK regulation…

Worth a read: https://www.fca.org.uk/news/press-releases/fca-war...