Beware! CFI HK 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.
CFI HK tries to convince its potential clients that it is a reliable and licensed broker they can entrust their funds to. However, this is nothing but a lie as many discrepancies on this company’s website prove that you should avoid trading with this broker at all cost. Here are the details.
CFI HK Regulation and safety of funds
From the name of the broker and the address provided on its website, we find out that this is a Hong Kong broker that even cites a regulatory number with FCA.
First of all, CFI HK does not exist on the register of the Hong Kong Securities and Futures Commission (SFC). Furthermore, as visible from the image below, SFC has issued a warning against virtual asset futures contracts and warns the public that there are a lot of risks in trading with such brokers who are considered extremely risky as they are largely unregulated and highly leveraged.
In addition to that, the information provided by CFI HK that it is regulated by FCA is false as such broker does not exist on FCA register.
Needless to say, this broker is non-legit and as such we do not advise you to trade with it.
Hong Kong is one of the main financial centres in the world and Hong Kong forex brokers are strictly regulated by SFC. All licensed forex brokers must have a capital of approximately $640,000 and participate in the Investor Compensation Fund where up to $150,000 of the trading capital is insured and covers trading in securities and futures contracts but not leveraged forex trading. All licensed brokers are required to include in their Terms and Conditions a clause according to which clients can claim damages as a result of being recommended or sold training financial products not reasonably suited for them.
Forex brokers in the UK are also strictly regulated by the Financial Conduct Authority (FCA) and they must have an initial capital of no less than 730,000 EUR, keep clients’ funds separately, provide protection against negative balance, report their transactions on a regular basis and offer leverage no higher than 1:30 for forex currencies. In addition to that, UK brokers are required to participate and deduct funds towards the local Financial Services Compensation Scheme from which in case of bankruptcy the clients can be reimbursed up to 85,000 GBP per client.
CFI HK Trading software
With all links regarding legal documents broken, CFI HK expects its potential clients to blindly provide crucial financial and personal data including passport and banking information in order to register a trading account. Understandably we did not do it. However, the unpleasant surprises did not end with this. When we tried the direct link for downloading the MetaTrader 4 platform which apparently this broker is offering to its clients, we got a warning (image below) saying that running the app for the platform download may put our PC at risk.
Normally, with licensed brokers, MT4 would be an excellent choice of a trading platform. Although already 15 years old, MT4 is still one of the leading platforms and very popular among forex brokers and traders alike thanks to the excellent package of trading tools and instruments it offers that enhance clients’ trading experience. Among all, we can mention the auto trading option, the code base with customs scripts, the VPS, the trading signals, the app market, etc. One of the key features of MT4 is the charting options that have many charts, time frames and colours to choose from. Combined with the technical analysis indicators, such as Fibonacci retracement, Bollinger Bands, moving averages, etc., they help traders predict the future direction of exchange rates and make a profit.
CFI HK Deposit/Withdrawal methods and fees
The links for the legal documents including Customer Agreement and Website terms and rules do not work. There is no information about what trading accounts are available to the clients or what the minimum initial deposit is. Neither there is information about the minimum withdrawal amount or any related fees.
Needless to say, any self-respected broker would have such information visible and easily accessible on its website.
How does scam work?
A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.
What to do if scammed?
Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.