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    TBC Defrauded Investor with “High-leverage” Scam

    Abstract:Investors might often heard about high leverage in forex investment, and tempting as the so-called “high leverage with high return” may sound, it often accompanies equally high risks, as there’s no such thing as a free lunch. Recently, WikiFX got a report from a victim of such “high-leverage” scam.
    高杠杆

      Illegal broker: TBC

      Regulatory status: Currently unregulated

      Complainant: Ms. Zhang

      Cause of complaint: Withdrawal failure

      Investors might often heard about high leverage in forex investment, and tempting as the so-called “high leverage with high return” may sound, it often accompanies equally high risks, as theres no such thing as a free lunch. Recently, WikiFX got a report from a victim of such “high-leverage” scam.

    1.jpg
    Ms. Zhang’s ID card

      Event recap

      In late July this year, Ms. Zhang opened an account with forex broker TBC. Tempted by the broker‘s promise of high leverage, Ms. Zhang invested US$ 20,000 for her first deposit, hoping to make a fortune with it. However, her investment turned out unsuccessful as she lost nearly US$ 5,000 within a month. Towards the end of August, Ms. Zhang decided to withdraw her balance, but her application remained “in progress” while her withdrawn balance failed to reach her account. Ms. Zhang tried contacting the customer service and the IB of the broker, but neither of them responded to her request. To date, Ms. Zhang’s balance remains unavailable.

    2-1.jpg
    Ms. Zhang made a US$ 20,000 deposit to TBC

    2-2.jpg
    Ms. Zhang lost nearly US$ 5,000 within a month

    2-3.jpg
    Ms. Zhang’s withdrawal application remains “in progress”

      Analysis

      Many investors may assume that a higher leverage in forex trading means they can harness a larger amount of capital to make greater profits. However, such mindset is often easily targeted by illegal brokers, who lured gullible investors into their traps with so-called high leverage. A fact easily ignored by investors is that with higher leverage, theres inevitably a greater risk; and in the case of choosing an illegal broker, investors face multiplied risks of losing their money.

      Ms. Zhang is apparently a victim of the “high-leverage” scam. TBC claims on its official site that investors can “maximize your capital utilization through an optional 1: unlimited leveraged forex trading”. Yet the main financial regulators around the world such as FCA, ASIC and NFA all have restrictions regarding the leverage provided by forex brokers under their supervision, and no regulator allows forex trading with so-called “1: unlimited leverage”.

    3.jpg
    Per checking the WikiFX App, TBC is currently unregulated and has been in business for less than a year. Rated at only 1.11 on the WikiFX App, the broker is extremely untrustworthy, and investors should stay away from it.

    4(英文).jpg

      Conclusion

      TBC is but one example of the illegal brokers who try to deceive investors with their misleading “high-leverage” campaigns online. Investors need to carefully verify credibility of such advertisements and stay alert to slogans such as “ high-leverage”, “low threshold” and “great bonuses”. Always check the brokers profile to make sure its compliance. If you have any doubt about the broker, you can download the WikiFX App to verify its identity.

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    United States Dollar

    • United Arab Emirates Dirham
    • 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
    • United States Dollar
    • South African Rand
    Current Rate  :
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    United States Dollar
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