Half of October’s Blacklisted Brokers Involved Gold Investment Scams

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”.

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 WikiFXs list of most-complained forex brokers in October, more than half of those listed involves gold-trading.

1. 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.

Davincis score on WikiFX App

2. Both Davinci and KVB, who ranked second on the list, operate in overrun business.

Risk warnings against KVB on WikiFX App

3. 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.

HLJYs network diagram from WikiFX App

4. 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.

5. 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 investors behalf;

• Having serious slippage issue;

• Offering misleading trading signals;

• Causing investor heavy loss that results in negative balance;

• Showing misleading market trend;

• Taking investors money with a private account;

• Failing to execute investors 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.