Is Forex Club Freis not allowing withdrawals? They're accusing users of fraudulent trading!

Every foreign exchange platform undoubtedly aims for profit. However,Top ten foreign exchange reserves rankings in 2022 is it crossing the moral line when they unjustly accuse their users for monetary gains? Recently, a user complained on our website about Forex Club (Chinese official website: https://www.fcglobal-cn.com/zh-hans/, hereinafter referred to as: Forex Club) refusing to process withdrawals.

Mr. C's Experience with Forex Club

According to the information provided by complainant Mr. C, Forex Club refused to pay out commissions, using the excuse of order faking to deny them. While losses incurred previously did not raise any disputes, as soon as Mr. C gained profit, the platform's attitude changed completely, accusing users of malicious order faking. Realizing the situation, Mr. C had no choice but to file a complaint with us for public exposure.

Forex Club's Dark Past: History of Significant Customer Complaints

TraderKnows found an article in the Serait Headline online, reporting that when users faced slippage issues, the platform offered no communication or solutions, bluntly denying responsibility for compensation despite users claiming the market never reached the closing price, marking it as a case of malicious slippage which the platform ignored.

Such complaint issues were not uncommon during that period. Forex Club faced numerous similar complaints, such as inexplicably banning user accounts due to alleged insufficient activity, disabling withdrawals upon gaining profits, and requiring users to take photos holding their IDs.

Forex Club's Regulation Issues: A Truly Unregulated Old Platform?

Beyond the severe customer complaint issues, a more pressing concern is Forex Club's regulatory status. Does it even have any regulation?

Forex Club License Revoked by the Central Bank of Russia

As early as 2019, the Central Bank of Russia announced the revocation of Forex Club's license due to repeated violations that year. These violations included improper maintenance of internal accounting procedures, failing to meet collateral amount requirements, breach of reporting and false reports submissions, mismanagement of risk systems, and inaccuracy in information disclosure on their website.

Belarusian National Bank Regulation: Protecting Only Local Investors

TraderKnows investigated and found Forex Club is regulated by the Belarusian National Bank. However, upon checking the Belarusian National Bank's official website, it is clear Forex Club's domain does not match what is commonly known; the website is .org, yet the registered one is .by. Why this discrepancy?

.by is the top-level domain for Belarus, and there is no evidence to show that the Belarusian National Bank has direct oversight over offshore financial institutions. Their responsibilities are limited to registering and supervising domestic banks and non-bank financial institutions, and implementing foreign exchange control, but only within Belarus.

Simply put, the Belarusian National Bank is only responsible for the five .by domains registered by Forex Club. Outside of that, their jurisdiction does not extend, meaning users are only under regulation when trading via Forex Club within Belarus.

St. Vincent and the Grenadines Regulation: Extremely Low-Tier Offshore Regulation

Without this regulatory body, how many people even know of this country? The Financial Services Authority of St. Vincent and the Grenadines (SVGFSA) is scarcely recognized worldwide among forex regulatory bodies, known for its lax certification standards for brokers with questionable credentials, providing little effective financial protection for investors.

Apart from these two regulators, TraderKnows found no other regulatory bodies overseeing Forex Club. Additionally, the company noted on their website to convert user payments to credit card payments back to Holcomb Finance Limited, which is only registered in Cyprus.

The Financial Commission: Truly on Investor's Side?

The Financial Commission (full name: THE FINANCIAL COMMISSION) is an organization Forex Club claims can ensure the safety of investor funds and offers a maximum compensation of 20,000 euros in cases of fraud. Forex Club is among its members, thus promising investors that their deposits are protected. Even if fraud occurs, compensation can be sought from them.

But is this really the case? THE FINANCIAL COMMISSION is a self-regulating non-governmental organization, consisting of members from major brokerages such as IC Markets, TMGM, VT Markets, and among them, Forex Club. Forex Club's parent company, Libertex, even plays a role as a technology provider.

If an investor is indeed defrauded and seeks help from the Financial Commission, will they act truthfully to solve the issue for the investor, or favor the supporting brokerages by turning a blind eye? The answer is undoubtedly the latter. Obtaining compensation from such an entity, which is both player and referee, is nearly impossible. User reviews on Trustpilot confirm this.

In conclusion, the Financial Commission is an organization funded by its brokerage members, making it extremely difficult to receive compensation from them.

Conclusion

TraderKnows advises all investors to thoroughly verify the credibility of any brokerage before depositing funds, including checking previous complaints, user reviews, and regulatory compliance. If anything seems amiss, do not risk your hard-earned money. Should a withdrawal or other issue arise, report immediately or file a complaint with the bank or payment platform against the broker, or contact TraderKnows for exposure assistance. Do not trust anyone claiming they can recover funds for you, as this is likely a secondary scam! We sincerely hope for a world free of fraud.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.