Hong Kong’s SFC has issued a warning against Xiaohangjia Brokers

June 7, 2018 at 10:26 PM

Hong Kong’s Securities and Futures Commission (SFC) has published a warning against the forex broker Xiaohangjia Brokers.  (SFC) of Hong Kong is the independent statutory body charged with regulating the securities and futures markets in Hong Kong. The SFC is responsible for fostering an orderly securities and futures markets, to protect investors and to help promote Hong Kong as an international financial center and a key financial market in China. According to the regulator, the owner of the brokerage Xiaohangjia Futures Limited, is falsely claiming to be located at an address in Hong Kong. Furthermore, SFC notes, unlicensed entities often use names similar to legitimate companies to confuse investors. The broker’s website gives the regulatory information of the company and that it is licensed in Vanuatu with Vanuatu Financial Services Commission. They even provide the scanned copies of the license and certificate. Even though the broker is licensed in Vanuatu, it still has no rights to reach our people in China without having an SFC license. Also, it is better not to deal with the brokers who have offshore registrations as there is a chance the investor will not see it’s money ever again. As a general rule, unregulated brokers or ones making false claims, are to be avoided, as often they are a scam. It is better to deal with reputable and properly regulated brokers, like the ones supervised by the FCA or ASIC. You can read our review on this broker here.

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