HLJY Swindles IB with the Excuse of “High Return”

As the financial market with the most frequent transactions, forex market has been the first choice of global investors due to its high efficiency, flexibility and liquidity. However, many illegal brokers on this lucrative market are marketing with misleading slogans like “become IB with zero investment”and “high rebate”to lure inexperienced introducing brokers (IBs) into their traps.

Mr. Wang is an IB who sought help from WikiFX after being defrauded by HLJY. Having called the police, he also hope WikiFXs exposure of the illegal broker can warn other investors against it.

Complainant: Mr. Wang

Broker: HLJY

Brokers website: www.fxhlbl.com

Account Balance: US$2,149.1

Withdrawal status: in process

Account status: suspended

Customer service: unavailable

Event recap

This March, I became an IB of HLJY after I saw its advertisement online. Though the platform promised rebate for IB in the next trading day once an order is completed, I didnt receive rebate for my first order until a week later, and little did I know this was just the beginning. According to the IB service contract, I introduced my friends and acquaintances to HLJY and helped them sign up and make deposits at the platform.

The deposit process went smoothly and the clients are all expecting to make some profits. On June 17th, I contacted HLJY‘s customer service because a client wished to withdraw, but I received no reply. After waiting anxiously for a whole week, the customer service simply said that “the system is under maintenance and withdrawals can’t be processed until July”. Feeling frustrated, I complained to HLJY by sending an email to the address on its website, but got no answer either. Under great pressure from the clients, I continued to wait for half a month. The customer service simply passed the buck to the bank and disappeared, while the platform kept on rejecting withdrawal applications despite my urgent demand. Before long, I found my account was suspended with my balance of over US$ 2,000 wiped out! I had no choice but to call the police.

Analysis

According to HLJY website, the broker is a member of Chinese Gold and Silver Exchange Society (membership number: 067) in Hong Kong, and is a credible web-based forex broker under strict regulation of the organization.

However, Chinese Gold and Silver Exchange Society(CGSE) is only an industrial association rather than an official regulatory body, suggesting it is not authorized to provide any regulation. Notably, the CGSE website disclaimer also reminds investors that they should be responsible for verifying and deciding the authenticity of the contents on the websites of members, while CGSE “give no representation or warranty on the accuracy and completeness of any information provided on this website and disclaim all liabilities for any loss and damages arising from any inaccuracy or incompleteness or delay of such information”.

Obviously, the “strict regulation” claimed by HLJY is no more than a “bluff”. The broker is simply taking advantage of the reputation and credibility of CGSE to gain the trust of its target IBs like Mr. Wang.

Case summary

The searched of keywords “become an IB of HLJY” online showed over 300 thousand results which was truly astonishing. Conceivably, investors and IBs continue to be lured by the false promise of high profits by HLJY everyday and become new victims of the deceitful broker. These advertisements proclaim their compliance and legitimacy to gain the trust of IBs and at the time we received Mr. Wangs complaint, such false advertisements still profuse the internet.

From “100% profit guaranteed” to “high rebate”, the illegal brokers keep coming up with new tricks to defraud investors and IBs. From Mr. Wangs case we can learn the following lessons:

1.Becoming an forex IB always bears certain risks, and instead of blindly believing in advertisements, IB agents should remain cool and carefully investigate the brokers compliance, strength, regulation status and risk-control level before making a decision.

2.Investors should also check the compliance and profile of a broker before readily accepting the recommendation of anyone, even acquaintances or friends.

Conclusion

Per checking WikiFX App, HLJY uses white-label MT4/5 software with an irregular server location. Moreover, WikiFX receives about 20 complaints against HLJY in the recent 3 months, suggesting the broker to be highly risky.

If you wish to learn more about how to chose a reliable broker, avoid the pitfalls of illegal brokers and defend your rights against broker scams, or are interest in other WikiFX exposure of illegal brokers, please check WikiFXs official website at www.wikifx.com. To report illegal broker, please contact WikiFX at wikifx@wikifx.com. Together, we can reduce the number of illegal brokers on the market by nipping them in the bud.