The Financial Markets Authority (FMA) in New Zealand has once again identified a suspicious firm that could be operating a scam. This time, its ZonggangCaifu the regulator is warning about, with the company joining a long list of firms blacklisted by the regulator.
Earlier this week, the FMA identified that ZonggangCaifu, which claims to be an online foreign exchange (forex) trading provider, is not registered, licensed or regulated in New Zealand, despite claims it makes on its websites.
Furthermore, the company has provided the following registration numbers on its website – FSP1782, FSP1762, FSP488226, and FSP536586. ZonggangCaifu claims that these registration numbers are its own and “prove” that it is a legitimate company.
However, the FMA has caught the company in its own lies, as these registration numbers actually belong to KVB Kunlun group of companies. It probably will come as no surprise to you that KVB Kunlun is in no way associated with ZonggangCaifu and the company is fraudulently using these numbers to appear as legitimate and most likely, trick investors.
Trading Places: Finding The Best Jurisdiction for Your BrokerageGo to article >>
ZonggangCaifu operates through the following websites – www.zgtra.com; www.zgangfx.com; www.zongforex.com. According to the company, it offers forex trading through MetaTrader 4 and via its mobile platforms available on iOS and Android devices.
“Zong FX is a leading global provider of forex trading and we provided related services for retail and institutional clients, the combination of elites and professionals from around the world,” ZonggangCaifu’s website states.
SFC Warns Against ZonggangCaifu
However, the FMA notes that it is not the first watchdog in the financial industry to warn against this company. In fact, the Hong Kong Securities and Futures Commission (SFC) has also added www.zongforex.com on their alert list as a “suspicious website.”
Since not one, but two, financial regulators have warned against this alleged FX trading provider, to protect yourself from being scammed, it is a good idea to avoid dealing with this company altogether.
If you are ever unsure if you have been contacted by a financial scam or are considering investing your money in an online trading provider, it is always a good idea to first check the warning list of your local regulator, or reach out to them to check the authenticity of the firm.