Reason to avoid: No license
Listed Date: December 29, 2018
Top 3 Regulated Forex Brokers
Beware ZonggangCaifu is a Non-Regulated broker. It is NOT SAFE to trade
- Company name: ZONGANGGUOXIN GROUP LIMITED
- Registration/license: None
- Registration/license requirement: –
ZonggangCaifu is a Forex and CFDs broker. The company is owned and operated by Zongangguoxin Group Limited and claims to have offices in Hong Kong, UK and the USA. Also, according to broker’s website, it is regulated by multiple authorities in different countries: Australian Securities & Investment Commission (ASIC), Securities and Futures Commission of Hong Kong (SFC), China Banking Regulatory Commission (CBRC) and New Zealand’s Financial Markets Authority (FMA). However, we have checked the information about all these licenses and it turned out ZonggangCaifu is not regulated by any regulator.
Moreover, New Zealand’s FMA has issued a warning against ZonggangCaifu:
“ZonggangCaifu is not registered, licensed, or regulated in New Zealand as claimed on its websites. The financial service provider registration numbers of FSP1782, FSP1762, FSP488226 and FSP536586 displayed on ZonggangCaifu’s websites belong to KVB Kunlun group of companies. KVB Kunlun is NOT affiliated with ZonggangCaifu and its websites. ZonggangCaifu could be involved in a scam.”
Also, there is a warning from Securities and Futures Commission of Hong Kong:
“The above Hong Kong address belongs to a secretarial company. Suspicious website operators often use names similar to legitimate companies to confuse investors.”
To sum up, ZonggangCaifu is an unregulated forex broker and it is the biggest concern as the lack of license adds additional risk to forex trading. On the other hand, those brokers regulated by reputable authorities have to follow a lot of rules that are made to protect clients. For example, there is a minimum capital requirement they need to meet and also, they need to keep the accounts segregated. Check the list of the ones imposed by the Australian Securities & Investment Commission (ASIC).