Illegal Broker Blamed Pandemic and the Bank for Withdrawal Failure
While
multiple brokers have seen a boom in transaction volume during the
epidemic, some have experienced withdrawal issues and blamed it on the
banks that remained closed due to lockdown measures. Is that what's
really happening？ Take a look at this case below.To get more news about
WikiFX, you can visit wikifx news official website.
Event recap
In
August 2019, the complainant Mr. Jung opened an account and deposited
on the trading platform of Forman Forex, a broker that prides itself on a
long history in the trade and claims to hold ASIC license. In the first
few tradings, Mr. Jung generally made good returns, so he gradually
dispelled doubts about the platform. For the rest of 2019, Mr. Jung's
trading operations and withdrawals on the platform had no problems, and
everything seemed to go well.
However, the sudden coronavirus
outbreak dealt an unexpected hard blow on Mr. Jung's transactions. Under
the influence of the epidemic, Mr. Jung's transaction frequency
decreased significantly, while the withdrawal applications submitted at
this time failed to be approved in time as before. In several occasions
Mr. Jung had to cancel the withdrawal application after waiting for many
days in vain.
But when he applied to withdrawal again on March
19th, the application was soon shown as completed on the MT5 trading
software. However, after waiting for a long time, Mr. Jung still didn't
receive the withdrawn funds.
Mr. Jung immediately contacted the
platform but was told that the above delay was because the bank hadn't
resumed usual business during the epidemic lockdown. But as time goes
by, Mr. Jung's withdrawal still failed to arrive even after the bank
processing transactions of Forman Forex already resumed business on a
large scale, while his recently-submitted withdrawal application had not
been approved and remained in progress.
The broker claims to hold a
valid regulatory license granted by ASIC, but according to
investigation, both of the broker's licenses are invalid. The investment
consulting license limits the licensee's business scope to financial
consultation services and doesn't qualify the broker for providing
services involving forex and other financial derivatives products.
Meanwhile, the MM license(regulatory number 403863) the broker claims to
hold actually belongs to another broker Synergy, not Forman Forex. In
addition, according to WikiFX's on-site investigation, Forman Forex's
office is not located at the claimed address.
Up to now, WikiFX App
has included profiles of about 18,000 global forex brokers. If you have
any question about a broker's qualification, you may check the broker's
profile on the WikiFX App. WikiFX has also released the new feature of
“Wiki Fair”, a forum where investors can discuss forex trend and expose
illegal brokers.
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