Illegal Broker ZHENXI INVESTMENT Defrauded Investor

The forex market is a mixture of both compliant and illegal brokers, which makes it difficult for investors to distinguish between them. Some unscrupulous illegal brokers thus fake their compliance and defraud unwary investors.

Recently, Mr. Chen reported ZHENXI INVESTMENT to WikiFX. The broker manipulated his account and set it on auto-trading, causing Mr. Chen to lose over US$ 8,000 within 30 days. By exposing how the broker defrauded Mr. Chen, WikiFX hopes to remind investors to stay alert and avoid similar traps.

Exposure of illegal broker

Complainant: Mr. Chen

Broker: ZHENXI INVESTMENT

Brokers website: www.zhenxiin.com

Mr. Chen first heard of ZHENXI INVESTMENT in this July through “Zhan Hao Finance”, a popular online live-stream channel. The channel‘s signal provider who claimed to be a professional analyst recommended ZHENXI INVESTMENT to Mr. Chen and other followers, assuring them that they can entrust their assets to this broker who has over a decade of experience. The initial deposit soon generated profits, which gave Mr. Chen and other investors much hope of making a fortune. But after that, Mr. Chen’s withdrawal applications were constantly blocked, while his account “automatically” placed orders and denied his attempts to close positions, making him lose over 90% of his account balance. When he contacted the customer service, the latter told him that “there‘s no need for them to escape simply to defraud several thousand dollars”, and stopped replying his message altogether. WikiFX learned that at press time, Mr. Chen’s account balance has been wiped out completely, while the customer service hasnt offered any satisfactory explanation until now.

Analysis of the scam

ZHENXI first advertised on the popular online live-stream channel “Zhan Hao Finance” to attract investors attentions, and successfully tricked investors like Mr. Chen into opening accounts on the platform. Once investors have made deposits, ZHENXI would manipulate their accounts, such as set auto-trading or change the password, to block investors from closing positions and swallow up their account balance.

Summary

ZHENXI INVESTMENT claims on the official site that its under the supervision of Australia financial regulator. But logging in the website of Australian Securities and Investments Commission (ASIC), the only financial regulatory body in Australia, we failed to find any regulatory information about “ZHENXI INVESTMENT”. Per checking the WikiFX App, ZHENXI INVESTMENT, with a low rating of 1.12, has been in business for less than a year and is currently unregulated, bearing tremendous risks. Notably, the broker is also related to 7 other white-label brokers, none of which is regulated.

Conclusion

As China continues to strengthen legislation and regulations in the financial sector, more forex scams are being exposed, yet the illegal brokers are also upgrading their tricks in defrauding investors. Investors should watch out for potential risks and stay away from unregulated forex brokers. To find out more about brokers information and forex market trends, please visit our website or download the WikiFX App.