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    ShengTong Defrauded Investor by Swallowing up Deposits

    Abstract: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.
    原来是个坑-英.jpg

      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.

    1.jpg
    Mr. Zhang was left with only US$ 0.33 in his account

      Exposure of the illegal broker

      Complainant: Mr. Zhang

      Illegal broker: ShengTong

      Brokers website: www.shengtongfx.com

      Withdrawal status: unable to withdraw

      Brokers status: unavailable

    2.jpg
    Mr. Zhang provided his ID card to ensure authenticity of the complaint

      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.

    3.jpg
    Mr. Zhang’s trading record

      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.

    4.jpg

      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.

    5-英.jpg

    ShengTongs rating on the WikiFX App

      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.

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    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
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