Forex market is the largest and the most liquid market in the world, with around US$5.3 billion daily trading volume. There are many benefits of trading forex, including convenient market hours, high liquidity and the ability to trade on margin, which appeal to investors. Despite its huge size, forex trading is much scattered without a centralized global regulator. Driven by high profits, illegal brokers try to cheat investors by all means, such as presenting cloned licenses.
Mr. Yang filed a real-name complaint against forex broker Furdfx, hoping that WikiFX can expose the illegal broker and warn investors against it.
Complainant: Mr. YangBroker: FurdfxWebsite: www.furdfx.comAccount balance: US$3,000Withdrawal status: in processCustomer service: unavailableInvestor's complaintI was enticed to sign up at Furdfx and deposited US$ 3,000. Later I was suddenly in urgent need of the money, so I submitted two withdrawal applications in the evening of July 11th and morning of July 12th respectively. Unexpectedly, my applications remained in process for 10 days. Feeling anxious, I immediately contacted the customer service and the salesman about my withdrawal status, but the customer service simply told me “the system is in maintenance and being upgraded” and disappeared, while the agent never bothered to reply. My attempt to get a solution by emailing the platform also failed, and it finally struck me that I was cheated.
Investor reported Furdfx to WikiFX
Investor's deposit record
The withdrawals remained in process
The customer service didn't reply any longer.Analysis
1. Furdfx's website is highly suspicious. Though Furdfx claims to be a global broker, its only website in Chinese doesn't show any contact information, while its address in Cyprus tends to be a fake one. All these suspicious points suggest Furdfx is highly unreliable.
Furdfx's only website in Chinese
Contact information shown on the website is questionable2. Furdfx is operating under cloned licenseFurdfx claims it is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC), with regulatory number 272/15. But WikiFX found through checking CySEC website that license no. 272/15 belongs to another forex broker Forex TB Ltd. More surprisingly, Furdfx's website is nearly identical with that of Forex TB Ltd except for its banner. It even copied Forex TB's logo.
Regulatory information on CySEC website
Forex TB Ltd website3. Furdfx uses white-label instead of real MT4 softwareMT4/MT5 software is the trading software used by compliant brokers worldwide, as the software ensures fair trading by allowing all investors to trade in the same market, while investors' trading data is protected from malicious manipulation. However, Furdfx's trading software is in fact just a white-label MT4 software with server set up in the US. Such white-label brokers are usually more risky due to their relatively lower costs.
Summary Within a week, WikiFX received many investors' complaints about Furdfx's blocking withdrawals. From these examples, we conclude that Furdfx first tried to befriend investors in the name of “stock recommendation” and then coaxed them into investing forex at its platform, “disappearing” soon after defrauding investors of their deposits. Through misleading advertisements such as “low-risks” and “high-profits guaranteed”, Furdfx lures investors into its trap. Though they might gain small profits, the investors will eventually lose their deposits under Furdfx's manipulation and end up in heavy loss. Investors need to beware of the indicators of high-risks when choosing a broker and conduct all-round inspection of broker's website information, compliance, risk control level etc. to avoid potential risks.Conclusion
Per investigation, Furdfx is an illegal broker with a WikiFX rating of only 1.32. WikiFX has labeled it as a cloned-license broker, as its self-claimed license from CySEC belongs to another broker and it has no valid regulation currently. If you wish to learn more about how to chose a reliable broker, avoid the pitfalls of illegal brokers and defend your rights against broker scams, or are interest in other WikiFX exposure of illegal brokers, please check WikiFX's official website at www.wikifx.com. To report illegal brokers, please contact WikiFX at firstname.lastname@example.org. Together, we can nip more illegal brokers in the bud and improve the forex market environment.