Beware! ZHRT is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
ZHRT or Zhonghui Rongtong is a broker that is said to be located in Hong Kong, which is a very bold claim, for the local regulator does not joke around. Hong Kong is one of the hotspots of the financial markets industry, and as such has implemented very severe regulatory frameworks that every local broker, or international with a local branch, must 100% abide by. Yet ZHRT does not feel like it belongs to Hong Kong, with its obviously limited website with questionable filler texts. Read the review to find out all you need to know about ZHRT.
It’s never a good sign when we cannot register in a broker, more so in a suspicious one. That is what happened to us. To finalize the registration process, one must enter a code which is received presumably by the provided email address. After waiting for some time, we received the code, entered it, and hit the first of many walls. What we need is the Recommend Code, which can only be one thing; a short cipher provided personally by an agent of the broker, or representative. Usually these agents contact users on their phone and try to convince them to deposit. Seeing as there is no phone number filed to complete, means that ZHRT gets this specific client contact detail from other sources, probably via phishing ads or similar traps found all over the internet. Once a user is contacted, if he or she decides to deposit, then he/she is given this Code with which the registration is successfully completed. This is is just a theory, however the fact of the matter is that this is one of the oldest and most common scammer schemes used to lure in investors.
In short, we did not have access to an account, which, as always, means that we must rely on the information provided by the broker on the website. Without a registration, we cannot include accurate trading information, because we did not access a trading terminal. As per the website, the leverage is supposedly capped at 1:400, and the EUR/USD spread is 2.1 pips, a value that does not offer users any profits. In fact, the only winning side with such a high spread is the broker’s.
ZHRT is allegedly offering Forex Pairs, two metals, and two oils as its assets.
The website offers only two languages in which users can translate it- English and Chinese.
ZHRT REGULATION AND SAFETY OF FUNDS
Hong Kong is the financial hub of South-East Asia, making this area crucial to the world’s forex market. Each legitimate forex broker must fall into the regulatory oversight of the Hong Kong Securities and Futures Commission (SFC) in order to provide legal and secure trading conditions to investors.
The SFC not only takes care of all the brokers in the area, but is also in charge of the Hong Kong Stock Exchange- the seventh largest stock exchange in the world. Furthermore, to be eligible for a SFC license a broker must hold a minimum capital of 5 million Hong Kong Dollars (averaging around $640k USD), as well as be an active participant in the Investor Compensation Fund which covers traders’ losses in case of the broker going insolvent. The maximum reimbursed sum is capped at $150 000 and covers only securities and future contracts trading. Even so, this is one tight circle to get into.
The SFC, as most financial watchdogs, encompasses an online database of all its licensees. We visited this registry to check Zhonghui Rongtong’s legitimacy and were not surprised to see it missing. Furthermore, the broker has not once mentioned that it holds a license from any regulator, not limited to the SFC. The closest thing they have are short and ambiguous clauses claiming that the user is bound by laws and regulation, never specifying what these laws are.
Needless to say, ZHRT is UNLICENSED, and therefore a risk to all investments made in it!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
Furthermore, the legal documents make it clear that the broker is not responsible for any losses he or she experiences, i.e the common indemnification clause
ZHRT TRADING SOFTWARE
ZHRT offers a function MT4, we can vouch for that. In other words, the MT4 is under the ZHRT name. However, we could not access it for reasons we explained. There is also an iOS version of the metatrader, as well as an Android based one.
Nevertheless, users can never go wrong with the MT4, which is considered as the best trading software there is. Its functionalities are seemingly endless: multiple time frames, freedom to customize your charts, automated trading bots, drag and drop charts, over 500 customizable trading indications, and so much more. The platform can seem a bit intimidating at first, but once you learn the ropes you will be seeing a different side of forex trading.
ZHRT DEPOSIT/WITHDRAWAL METHODS AND FEES
Here is where things get from ambiguous to downright absent. The only piece of payment information available to non-registered users is what looks like a bitcoin wallet address. Note that any cryptocurrency deposits are untraceable, thus making this the preferred payment gateway for illicit brokerages.
There is literally nothing else to shed some light on deposits and withdrawals. Our assumption is that further payment details are only accessible to registered customers.
We strongly advise traders dealing with offshore brokers to only deposit the minimum deposit, or better yet- not deposit at all! As for the withdrawals, scammers are known to either deny such requests, or impose incoming and unexpected charges.
There is mention of certain fees and charges that vary from one geographical location to another:
Aside from that the Terms and Conditions are criminally short, and have nothing of importance.
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.