For foreign exchange investment, it is very important to identify the black foreign exchange trading platform. If you fail to identify the black foreign exchange trading platform, you will be deceived and cause money loss. In the past year or so, due to the lack of effective legal supervision, there have been many scams in the foreign exchange industry that have humiliated the industry and hurt investors, and incidents of withdrawal of funds on foreign exchange platforms have occurred from time to time. At the same time, the website of a certain company was closed, the withdrawal of funds was not possible, how much loss it suffered, or whether it was a formal trading platform, etc…
In order to avoid being deceived, how can we avoid falling into these scams? The following editor teaches you eight ways to avoid “being deceived” and debunk foreign exchange black platform scams.
How to identify black foreign exchange trading platforms
How to identify the black foreign exchange trading platform? In terms of identification, it will become simple if you master it. When identifying black foreign exchange trading platforms, there are eight identification methods that are often used.
By viewing supervision
Any regulated company in the foreign exchange industry is bound to be supervised by one or more regulatory agencies. The National Futures Association (NFA) is the most stringent regulatory agency (sometimes even too stringent, causing many brokers to leave the US market). A company has an authorized license from NFA, the British Financial Market Conduct Authority (FCA), the US Commodity Futures Trading Commission (CFTC) or other well-known regulatory agencies, does not necessarily mean that the company is very honest, but it will be relatively secure . If the regulatory agencies of some companies are in unknown island countries abroad, or the regulatory agencies of a certain African country, then you should be careful of these companies.
Generally speaking, black foreign exchange trading platforms are not qualified to be regulated, so when we look at the platform, we can see if it is a black platform. It is enough to check the supervision of the platform, as long as it is a platform that is regulated by a formal platform. If it is formal and regulated by an unknown country such as Mauritius, then it is best for investors not to believe it.
As a black foreign exchange trading platform, it generally does not exist for long in terms of time. Because the nature of the platform itself is fake, investors can judge whether the platform is formal or not through the existence of the platform. I have an experience here, that is, platforms that have existed for more than 5 years are basically formal, while black platforms are usually impossible to exist for five years.
By looking at the reputation of foreign exchange trading platforms
The reputation of a good foreign exchange trading platform determines the popularity of a platform. There is basically no problem with a foreign exchange platform with a good reputation, but there are also some foreign exchange platforms that have a good reputation but are not particularly formal. This is the point of investors It should be paid more attention.
Beware of high yield promises
At present, many foreign exchange companies in China’s foreign exchange industry have launched foreign exchange fund products, promising to investors that they can get high yields in different cycles such as one year and one month. Investors in such companies should generally be careful. What assets does a financial company use to back it up and give investors high interest rates? Do you think those foreign exchange companies are banks?
Browse the company’s official website carefully
To be honest, this is very important. The official website of a formal and legal foreign exchange company often announces all investment-related information to investors, including trading risks, regulatory information, trading products, company profiles, etc. You will know this at a glance Is the company doing it hard? On the contrary, the official website of some companies, at a glance, is a copycat website with rough pages, mismatched colors, and lack of key investment information.
There are indeed many people in the foreign exchange industry who are “unpredictable”. They have no minimum professional ethics, and they even regard the law as blank. Before being exposed, they always look innocent. It is indispensable to guard against others. You should assume that everyone is sinister until you are sure that they are honest and honest. This is the market!
A foreign exchange demo account is the most basic tool for testing a broker. Some mechanical systems can do very good demonstrations. But what about it? You have to practice it yourself. Some installation procedures, quotation update speed and spreads, etc., may determine whether this dealer has certain problems. You can apply for a demo account with the company to experience the transaction process and execution speed.
Internet search, found the problem
Now it is easy to search for a certain company or a certain product on the Internet. It is recommended to enter the name to be searched in the search bar and add words such as “black” or “false”. If there are too many such results and examples in the search results, then it is certain that in addition to the news from competitors, there must be many users who have encountered them.