Forex fraudulent platforms should not be touched! Come and see which types of fraudulent platforms s

With the development of the forex market, the number of fraudulent forex platforms is increasing, as can be seen from the fraudulent platform rankings on the WikiFX App. They often package themselves as a legitimate forex platform to deceive those who want to invest and manage their finances. Once their appearance and your funds fool you are damaged, the black platform may disappear and leave you with nothing. So, how can we avoid being deceived？ What are the types of these black platforms？

Here is WikiFX's summary of the types of FRAUDULENT platforms currently on the market, and investors must stay away from them!

First type: False Platform

This fraudulent platform usually impersonates a legitimate forex broker and attracts investors to deposit and participate in forex trading through false websites, promotional materials, and customer service. However, they do not have legitimate regulatory qualifications and cannot provide legitimate forex trading services. They will then provide you with the pirated MT4/5 software they set up. Once you download it, you will lose money to them.

Identification method: Check the properties of the MT4/5 installation package. It is a fraudulent platform if it does not have a digital signature.

Second type: Pyramid scheme platform

These fraudulent platforms typically use pyramid or multi-level marketing methods, promising investors high returns by requiring them to pay a certain joining fee or purchase a product before developing downline members to obtain commissions or returns rather than engaging in forex trading.

Identification method: If a platform gives you benefits at the beginning or tries to persuade you to recruit members in various ways, be careful.

Third type: High-yield platform

These fraudulent platforms usually promise high fixed or floating returns, attracting investors to participate in forex investments and promising to guarantee principal and interest or low-risk high returns. They often involve high-risk trading strategies or illegal operations with potential investment risks.

Identification method: If a platform claims high returns with low risk and high profits, be cautious to avoid being brainwashed.

The fourth type: Unauthorized Platform

This type of forex platform may have a legitimate regulatory number from a regulatory agency, making it appear legitimate. However, they have only purchased a registration seat and do not have the authority to engage in forex trading.

Identification method: You need to log in to the official website of the corresponding regulatory agency and carefully check whether the operating scope includes forex trading authority.

The fifth type: Unregulated Platform

These platforms simply do not provide regulatory information, nor do they forge regulatory information. They rely on various deceptive marketing tactics to trap investors. Nowadays, there are not many such platforms left. If a platform cannot be found anywhere regarding regulatory information, it is this type of platform. Investors should stay away from it.

The sixth type: Cloned platform

Some legitimate foreign platforms do not operate in China, but these fraudulent platforms claim to be their branches in China. They provide regulatory numbers falsely obtained from compliant platforms, which is pure cloning. However, it is tough for ordinary investors to distinguish them.

Identification method: You need to log in to the corresponding regulatory agency's official website and check the platform's regulatory number. Then, see if the registered website in the platform's regulatory information matches the official website promoted by the platform. If it is inconsistent, we can confirm that the platform is fraudulent platform.

Seventh Type: Weakly Regulated Platforms

These platforms are sly, they know that some people only look at regulatory licenses when choosing a platform, so they apply for some licenses that are in name only, they have licenses, but in reality, they are no different from unregulated platforms.

Identification method: For this type, you need to carefully examine which regulatory agency it belongs to. If it is a small regulatory agency that can be bought and has little regulatory power, then you don't need to look further, as the risk is exceptionally high. For example, IronFX and ACFX, which went bankrupt a few years ago, were regulated by a legitimate agency in Cyprus. However, the regulatory agency's effectiveness is minimal. Once they run away, there is nothing you can do. Regulatory agencies also won't do anything to help investors, so it's best to stick to the larger and more reputable regulatory agencies.

These fraudulent forex platforms usually do not have legitimate regulatory qualifications and pose extremely high investment risks. Investors should be vigilant and choose legal and reliable forex trading platforms for investment. When investing in forex, one should also follow the principles of legality and compliance, carefully evaluate risks, and avoid participating in illegal forex trading.