ShengTong Defrauded Investor by Swallowing up Deposits

Nowadays, there has been an increasing number of illegal forex brokers with more sophisticated traps. Seeing that some investors have made loss at the bearish stock market and are eager to turn their fortune around in seeking instant profits, the forex scammers target such investors and lure them into carefully-devised traps.

Recently, WikiFX received a complaint from Mr. Zhang against the illegal broker ShengTong, who swallowed up his US$ 6,000 of deposit within a month. By exposing the illegal broker, WikiFX hopes investors can draw on Mr. Zhangs experience and watch out for such forex scams.

Exposure of the illegal broker

Complainant: Mr. Zhang

Illegal broker: ShengTong

Brokers website: www.shengtongfx.com

Withdrawal status: unable to withdraw

Brokers status: unavailable

I knew the introducing broker of ShengTong through my friend. The IB agent told me that the stock market had been tumbling down-slope lately and recommended forex investment, saying that it‘s more flexible and a better choice for hedging risks, while trading through leverage can multiply the profits. Tempted by her words, I decided to try my luck and made deposits worth of several thousand US dollars. By August 1st, I was able to make some profits, and the IB suggested me to increase my investment. However, I decided to withdraw the same day since I wasn’t that familiar with the platform. But ShengTong ignored my withdrawal application for over a month. Whats worse, I later logged in my trading account and found there was only US$ 0.33 left. By then I realized I was defrauded.

Analysis

According to Mr. Zhang‘s conversation with ShengTong’s IB agent, the agent refused to take any responsibility of the withdrawal failure, saying that she‘s “only the IB agent, not the broker itself” and blamed the withdrawal failure on “third-party withdrawal channel delay”. When Mr. Zhang made further inquiries about his withdrawal, the agent stopped replying altogether, which is typical of illegal brokers who are good at “playing dead”. However, many gullible investors still become their victims, sometimes even more than once.

A platform where investors have great difficulties withdrawing or more often, can’t withdraw at all, usually has poor regulation and compliance. Many of these are illegal brokers without regulation, yet they tend to fool investors by stepping up marketing budgets on their misleading advertisements. Therefore, investors should protect their assets by getting to know a broker in all aspects through different information sources.

Summary

Per investigation, ShengTong was registered in China and has been in business for less than a year. Currently unregulated, the broker is rated at 1.24 on WikiFX App and bears substantial risks.

Conclusion

All types of investment come with certain risks and forex is no exception. To constantly make exceptionally high profits is something next to impossible. Illegal brokers tend to seduce investors with small profits and coax them into increasing their investment, and once they do, they soon begin losing money.

Investors may visit WikiFX App or the official website to check more exposures of illegal brokers, and you may also report illegal brokers by contacting us at wikifx@wikifx.com. Together, we can improve the forex environment by nipping illegal brokers in the bud.