WikiFX Articles and Updates

Recommended Brokers


Forex Chart

WikiFX

Junior Member
Joined
Aug 12, 2019
Messages
91
Reaction score
1
Points
11

Nowadays, illegal forex brokers are often exposed in news reports. From disconnecting trading server to causing serious slippage and negative balance through manipulation, the forex brokers keep coming up with new tricks to defraud investors’ assets, leaving them in heavy losses.

Exposure of illegal broker:
Complainant: Mr. Qiu
Illegal broker: G-IMFCH
Cause of complaint: the broker rejected withdrawal applications

1-1.jpg

Mr. Qiu is an investor at G-IMFCH. His withdrawal application, submitted this August, was left unapproved by the broker, and although the customer service kept saying they have “sped up” processing of the issue, Mr. Qiu saw no progress in solving his withdrawal failure after waiting for more than a month. Having had enough of the broker, Mr. Qiu finally decided to file a real-name complaint at WikiFX in order to warn others against G-IMFCH.
1-2.png

Analysis
It turns out that the customer service’s so-called “expedited processing” of the application is only a lame excuse for the broker to postpone investor’s withdrawal. Meanwhile, the English introduction from the broker’s website is full of empty brag with little substantial information, and it’s hard to tell from these hypes how exactly is G-IMFCH an “award-winning” broker as it claims.

Moreover, G-IMFCH has also posted countless advertorials under titles such as “forex trading strategies” or “handy forex tips” on web-based forums and media portals, in order to gain more media exposure and appeal to more investors who may become its victims later on. This again reminds investors not to rely on a single source of information such as online advertisements and carefully check a broker’s credibility through various sources before investment.

Summary
G-IMFCH claims itself to be holding a New Zealand’s FSP license with regulatory number FSP479826. However, Financial Markets Authority (FMA) requires all forex brokers offering in New Zealand to hold a derivatives license, and having FSP alone means the broker is unauthorized in forex brokerage. Many illegal brokers tend to fool investors from this aspect, claiming that they are compliant brokers under regulation, which is not true.

Conclusion

By checking the WikiFX App, we learn that both the FMA (New Zeland)’s license and FCA (UK)’s license that G-IMFCH claims to hold are suspected to be cloned. The broker, currently unregulated, uses white-label MT4/5 software with suspicious server IP and has a poor rating of 1.48 on the WikiFX App. In addition, WikiFX has received over 20 complaints against the broker in the past 3 months, suggesting high risks in the broker.
You may visit WikiFX’s website www.wikifx.com to view more exposures of illegal brokers. To report a broker scam, please contact us at [email protected]. Let’s work together and nip more illegal brokers in the bud.
6-英语.jpg

G-IMFCH is rated at 1.48 on the WikiFX App
 
Sponsored Post

WikiFX

Junior Member
Joined
Aug 12, 2019
Messages
91
Reaction score
1
Points
11
285-160-英.png


What is binary option
Binary option is one of the most common forms of option. Compared with forex trading, binary option doesn’t involve trading lots, margin or leverage. Instead of actually trading an asset, binary option investors bet on whether the price of an underlying asset will be above or below the set mark at a certain time. Binary option bears considerable risks, as its mechanism is very similar to gambling.
1.png

ESMA’s prohibition on binary options

Booming development followed by crackdown
The rapid development of the internet has led to a proliferation of web-based binary option platforms, particularly after 2010. Yet among these emerging brokers, many conduct unauthorized business and make huge profits through their illicit practices. Facing with the overgrown binary option platforms, European Securities and Market Authority (ESMA) made an announcement last year, prohibiting the marketing, distribution and sale of binary options within EU boarders. As countries tighten their regulation, many binary option brokers choose to transfer their businesses to offshore companies in order to carry on their business operations.
2.png

Binary.com’s address from LFSA’s website

Visiting Binary.com
Binary.com claims itself to be an award-winning front-runner os online binary option with a trade volume of over 2 billion USD, and WikiFX visited the company’s branch in Malaysia upon investors’ requests. We arrived at the shopping centre where Binary.com is located, and found the company’s office. However, it’s empty with no one inside, and there were few people inside the building.
3-1.jpg



3-3.jpg


3-4.jpg


According to assessment data from WikiFX App, Binary.com is rated at 3.29. The broker uses non-MT4 trading software, which investors should beware of. In addition, WikiFX App’s risk warning suggests both the VESC (Vanuatu)’s license and FSC (the Virgin Islands)’s license held by the broker are in offshore regulation, while its FSA (Japan)’s license is suspected to be cloned, suggesting high risks. Investors need to be careful in choosing this broker.
4-英语.jpg

Binary.com’s rating on WikiFX App

Choosing a compliant binary option broker
Before making an investment, it’s a good idea to do a thorough research on the broker and check its information from all aspects, like its compliance and regulation, authenticity of its claimed regulatory status, whether it manages clients’ assets in segregated account and customers’ feedback on the broker.

Stay tuned as we bring you more forex trading strategies (fundamental and technical analysis) and don’t miss out the great forex contents updated on WikiFX.
 

Attachments

WikiFX

Junior Member
Joined
Aug 12, 2019
Messages
91
Reaction score
1
Points
11
With the rapid development of the global forex industry, numerous forex brokers of mixed quality also emerge on the market. The illegal brokers without proper qualifications always disguise themselves as compliant brokers through false advertising, and through illicit practices and manipulations they swallow up investors’ assets and undermine the healthy development of the forex circle.


Broker’s name: BDG
Website: http://www.bangdefx.com/zh-cn/
Complainant: Mr. Zhu
1.jpg

Mr. Zhu’s ID card

This March, Mr. Zhu first learned about the broker BDG through the recommendation of its IB agent, Mr. Sun, and made 2 deposits totaling US$ 7,000 at the platform. But 6 months later, Mr. Zhu lost more than half of his money instead of making any profits, with only US$ 1,700 left in his account. What’s more, something weird also happened when Mr. Zhu applied to withdraw. According to Mr. Zhu, he filed a withdrawal application nearly a month ago, but 2 weeks after he submitted the application, it strangely “disappeared” from the platform and Mr. Zhu had to apply again. The long wait and irregularities in the withdrawal process raised Mr. Zhu’s suspicion that the broker may have escaped.
2-1.jpg

Mr. Zhu’s deposit records

2-2.jpg

Mr. Zhu’s withdrawal record


Analysis
BDG claims on its official website that it holds IFSC (Belize)’s license with regulatory number IFSC/60/496/FX/17. With a broad business scope, the broker allegedly enables investors to trade a wide range of assets including forex margin, equities on Belize and international stock markets, securities, and cash. Its forex margin services covers currencies, commodities and CFD trading. But we wonder if the broker is telling the truth, particularly about its regulatory status.
3.png

BDG’s false claims on its website

After inserting the full name of BDG on IFSC’s website, we did find a regulatory record of the broker, yet it turns out that the IFSC license held by BDG is for general financial consultancy/advisory services, which means the broker isn’t authorized to offer trading in forex, securities, cash or equities. Moreover, the broker’s official site doesn’t match the registered website on IFSC, www.bondexglobal.com, and this self-claimed “top achiever of international finance industry”, strangely enough, doesn’t even have an introduction and web page in English.
4.png

Search result of BDG on IFSC website

Summary
According to WikiFX App, BDG is unregulated at the moment and rated at only 1.41. Network diagram of the broker suggests it has 12 related white-label brokers, among which 3 hold suspected cloned license, 3 operate in overrun business, 2 are unregulated and one is illegal. Investors should definitely stay away from this broker to avoid investment risks.
5-1英语.jpg

BDG’s rating on WikiFX App

5-2英语.jpg

BDG’s network diagram from WikiFX App

Conclusion
The forex market is full of risks, and for inexperienced investors, the greatest risk could come from brokers. WikiFX reminds investors that when choosing a broker, in addition to considering its reputation on the market, it’s also a good idea to do further research and get comprehensive information about the broker, such as whether its claimed regulatory details match with information on the regulation website, whether its license is valid and whether it operates in overrun business. If you have any questions about any broker, you can easily look it up on WikiFX App and avoid potential risks.
 

WikiFX

Junior Member
Joined
Aug 12, 2019
Messages
91
Reaction score
1
Points
11

Broker: CMCMarkets
Visited on: October 5th, 2019
Conclusion: broker truly exists.

On-the-spot investigation
Regulatory information suggests the licensed branch of CMCMarkets in Singapore is at 9 Raffles Place #30-02 Republic Plaza Tower, and WikiFX recently visited the broker at the site.

We drove to Market Street and found the striking logo of Republic Plaza, located in a bustling CBD. The building has strict security measures and we weren’t able to check on the broker’s office without reservation. Fortunately, there was a LED board in the lobby showing information of all companies in the building, and through that we learned CMCMarkets is located at room 02 and 03 on the 30th level, which matches address from broker’s regulatory information. We conclude that CMCMarkets’ licensed branch in Singapore really exists.
1-1.jpg


1-2.jpg


1-3.jpg


1-4.jpg

Analysis
As we wrapped up the visit to CMCMarkets, WikiFX’s on-spot investigation series in Singapore is coming to a close. Although there aren’t so many forex brokers in Singapore due to geographic reasons, most Singapore-based brokers are quite reputable, thanks to the strict regulation system of Monetary Authority of Singapore (MAS).
2-1.PNG



2-2.PNG

According to CMCMarkets’ website, the company was established in 1989 and is a leading global CFD provider, boasting over 30 years of rich experience. Listed at the London Stock Exchange in 2016, CMCMarkets now has branches in 15 countries worldwide, handling over 4 million transactions every month. Per checking regulatory information, CMCMarkets is fully authorized in its business, holding retail forex brokerage license from MAS (Singapore) and MM license from FCA (UK), among other licenses.

Conclusion
WikiFX App shows CMCMarkets to be under valid regulation, holding MM licenses from ASIC (Australia), FCA (UK) and FMA (New Zealand) respectively and retail forex licenses from BAfin (Germany), BDF (France) and MAS (Singapore) respectively. The long-established broker has a high-rating of 9.68 on WikiFX App, suggesting high credibility, and investors may entrust your assets to CMCMarkets.
3(英文).jpg
 

WikiFX

Junior Member
Joined
Aug 12, 2019
Messages
91
Reaction score
1
Points
11
900-510-英.jpg

In the last quarter of 2019, are you still considering where to invest your money? The illegal brokers, targeting investor’s mindset to make a fortune on the forex market, fan their anxiety of being “left behind” through advertising hype such as “precious metal continues to soar, it’s the perfect time for going long”, “profit effortlessly on the bullish gold market” or “start trading gold with only ¥1 through leverage”.
1.jpg

Gold price chart in October, 2019

Dubious as these slogans may sound, there are many gullible investors who fell victim to the traps of these brokers. According to WikiFX’s list of most-complained forex brokers in October, more than half of those listed involves gold-trading.

Davinci who topped the most-complained list received 65 investor complaints in the past 3 months, and is rated at only 1.89 on WikiFX App.
2-英语.jpg

Davinci’s score on WikiFX App

Both Davinci and KVB, who ranked second on the list, operate in overrun business.
3-英语.jpg

Risk warnings against KVB on WikiFX App

The third-most-complained broker HLJY is related to over 20 different white-label brokers, of which 3 are suspected to hold cloned licenses, 13 operate in overrun business, 3 are unregulated, one is in offshore regulation and one is illegal.
4-英语.jpg

HLJY’s network diagram from WikiFX App

PTFX who took up the 4th place is an illegal broker that WikiFX has warned investors against several times. Please stay away from this very risky broker.

DSY and HX who are new to the list both have low ratings, with DSY holding a suspected cloned license and HX under offshore regulation.

Notably, plenty of investor complaints suggest that the illegal brokers often lure investors into their traps by taking advantage of investors’ eagerness to profit. Usually they allow clients to make small profits at first, and after gaining investors’ trust, these brokers coax their victims into making greater investments, even when suffering heavy losses. Here are the typical warning signs of illegal brokers that investors should beware of:

Enticing investor into opening account;
Trading on the investor’s behalf;
Having serious slippage issue;
Offering misleading trading signals;
Causing investor heavy loss that results in negative balance;
Showing misleading market trend;
Taking investor’s money with a private account;
Failing to execute investor’s stop-profit/stop-loss accordingly;
Frequent disconnection/ server malfunction of the trading software.

If you have ran into similar problems during investment, you can download WikiFX App and sign up as our VIP member to seek professional assistance from WikiFX team.
 

WikiFX

Junior Member
Joined
Aug 12, 2019
Messages
91
Reaction score
1
Points
11
How Will Fed’s Rate Cut Affect Forex Market in November

Coming to November, a series of major global events such as ECB President Draghi’s farewell speech, the Fed’s 3rd interest rate cut in the year and the general sluggish trend in global manufacturing continues to stir up the forex market. Here’s a quick look at what’s going on recently that may affect the forex trend.

Draghi made his farewell speech
In the evening of October 24th (GMT+8), European Central Bank (ECB) President Mario Draghi spoke at his last press conference as the central bank’s leader after the policy meeting, while ECB decided to keep 3 key interest rates unchanged, in line with the market expectation. In addition, ECB also reiterates its plan to resume monthly bond-purchase of €20 billion, starting from November 1st, saying that the bond-purchase will carry on until the next interest rate increase, as long as the bank sees it necessary.

After the decision was announced, Draghi noted at the press conference that according to latest statistics, Eurozone economy remains weak on the long run with significant down-slope risks, and inflation may continue to decline. Draghi said the ECB may need to maintain large degree of quantitative easing for a longer period and be ready to adjust the policy tools accordingly. Advocating for a gradual expansion approach in financial policy, he also calls for the governments of EU members with more fiscal space to take actions and accelerate economic reform.

The Fed is expected to cut interest rate for the 3rd time this year
US president Donald Trump voiced disappointment about the Federal Reserve’s monetary policy on October 24th in a tweet, implying the Fed is too slow in cutting interest rates. As weakening economic indicators recently confirmed US economy is struggling with inadequate investment, the market had expected FOMC to lower the target range of interest rate by 1.5% to 1.75, and the prophesy has been proved as the Fed decided to cut rates once again after much deliberation, in order to tackle the current economic challenges.

A sluggish global manufacturing sector
US is not alone, as the whole world faces the challenge of economic slowdown. The Purchasing Managers’ Index (PMI) indicates sluggish manufacturing across the globe. Japan’s PMI registered the largest decline in 3 years, falling for 5 months in a row, while Australia’s PMI dropped to a record low to just above 50. In the Eurozone, PMI for France also dropped while Germany’s only recovered slightly from a decade’s low in last month.

As the world's largest financial market, the forex market is constantly affected by global economic policies. WikiFX will closely track the market dynamics while providing trader comprehensive information of brokers, in order to offer you a safer investment experience. For more information, please visit the WikiFX website or App.
 

WikiFX

Junior Member
Joined
Aug 12, 2019
Messages
91
Reaction score
1
Points
11
WikiFX Visited CIMB Bank in Malaysia

Name of the company: CIMB Bank
Address: Level 14(A), Main Office Tower, Financial Park Complex, Jalan Merdeka, 87000 Labuan F.T., Malaysia.
Visited by: WikiFX team

CIMB’s location
1.jpg



Background
As Southeast Asia speeds up its pace of opening up its financial market to the world, forex trading has become a popular type of investment. The number of forex investors is growing every year as forex becomes increasingly available for people. According to The Edge Markets, a leading business and financial media in Malaysia, CIMB Group’s annual growth rate of net profit reached 25.1% for 3 consecutive years during fiscal year 2015-2018, the highest growth rate among all entities with market value over 10 billion ringgits in Malaysia’s financial service sector. In recent years, CIMB Bank’s influence on the Southeast forex market expands rapidly, making it a reputable forex broker among investors. In order to help investors learn about the broker in detail, WikiFX decided to visit the licensed branch of CIMB Bank in Malaysia.
2.png

CIMB Group’s net profit

On-the-spot investigation
According to the address from regulatory information, WikiFX team reached Financial Park Labuan Complex. Local residents told us that the complex, covering 12 acres, is the largest business landmark on the Labuan Island. After entering the building, we filled out the visitor registration form as instructed and followed the direction signs to level 14, where we found CIMB Bank’s licensed office in Malaysia. Through the glass door of the office, we saw around 10 cubicles inside, and the working environment looked neat and organized.

3-1.jpg

Floor directory

3-2.jpg


Direction signs of companies located at level 14

3-3.jpg


CIMB Bank’s Reception



Investigation summary
We confirm after the visit that CIMB Bank’s licensed branch in Malaysia is indeed located at the address from its regulatory information and is currently in business.
4.png

The regulatory record of CIMB Bank from LFSA website

Conclusion
Per checking WikiFX App, CIMB Bank is rated at 5.76 and its 2 MM licenses from Labuan Financial Service Authority (LFSA) are both in valid regulation. Investors may safely choose this compliant broker.



5-英文.jpg


CIMB Bank’s rating on the WikiFX App

Up till now, WikiFX team has visited thousands of brokers across the world, with many visit reports now presented with VR technology. In addition, the WikiFX App has recorded the profiles of over 13,000 forex brokers in order to offer investors comprehensive forex information.
 

Attachments

Sponsored Post
Top
Log in Register