Beware! Ronghaninvest 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.
We are reviewing Ronghaninvest, a broker claiming to be FCA regulated and at the same time registered offshore only. Well, that’s pretty inconsistent, so we’ll have to delve deeper to see if this broker is legit or not. In fact, it’s not because it’s just another fraudulent entity, and you can see why we claim so in the full Ronghaninvest review.
Ronghaninvest REGULATION AND SAFETY OF FUNDS
Ronghaninvest is a Marshall Islands broker, which is indeed a problem. The islands are notoriously famous as shady tax haven overcrowded with shady companies and dodgy individuals. Marshall Islands do not even have a financial authority, let alone a regulated FX market, which thoroughly explains why so many scammers register fraudulent brokers there.
However, that’s only a part of the story. Ronghaninvest falsely claims to be FCA regulated and, but the British regulator actually issued a warning, exposing the broker as a scam scheme. The Spanish CNMV also blacklisted the broker, so your funds will be in danger if you deposit.
Avoid it, and better consider the high-rated EU brokers and British brokers on both lists if you are interested in trading and investments. The European companies are suitably regulated, but most importantly, covered by deposit insurance funds protecting traders and investors’ money. For example, CySEC brokers’ clients can claim up to 20 000 EUR in case of bankruptcy, while the British guarantees are even up to 85 000 GBP. CySEC (Cyprus) and FCA (Britain) licenses are trustworthy, and you should keep this in mind while looking for trading opportunities.
Below, you can see the information about Ronghaninvest on the website footer:
The second screenshot in this section displays the FCA warning:
Ronghaninvest TRADING SOFTWARE
Ronghaninvest allegedly offers MetaTrader4, the leading Forex platform, but we couldn’t access it due to registration issues we encountered. It was impossible to create a Demo account through the platform, too, so we can’t discuss real-time spreads. In fact, we can’t even confirm that the broker’s distribution is indeed functional.
As Ronghaninvest is a scam, we’d like to offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on our lists. MetaTrader distributions are market-leading platforms featuring advanced tools such as Expert advisors, many indicators, and excellent charting. The software also includes a marketplace with more than 10 000 apps and third-party developed solutions.
The leverage is said to reach up to 1:50, a ratio British brokers are prohibited from offering. So, the leverage alone proves that there is something wrong with the broker. In fact, it is so dangerous that most financial authorities even regulate it and EU, British and Australian brokers limit retail clients to 1:30 for FX majors, while Canadian brokers and US brokers to 1:50. Swiss brokers are reputable but not leverage restricted, so experienced, and risk-tolerant traders eligible to open an account in Switzerland can safely go for it. The rest of the high-leverage companies are poorly regulated and very likely a scam, so you need to be careful.
Ronghaninvest DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit with Ronghaninvest is $500, a demand 5 times higher than the regulated brokers’ standards on average. The funding methods are purportedly Wire Transfers, Credit/Debit cards and Skrill, but we can’t validate this either. We know nothing about the registration errors, but the British regulator proved many times it has the power to shut websites down or at least make them partly dysfunctional. Well, that’s just pure speculation on our side, but the Ronghaninvest may as well have been hit by the authorities already.
Nevertheless, as the broker is a scam, you’d better see our lists with Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred e-wallet or a trusted payment system. The high-rated companies are well-regulated, and you won’t face scammers, so you can safely open accounts.
Information about withdrawals and fees is not available in the Terms. In fact, there is no useful information whatsoever. The only thing worth mentioning is the Non-deposited Funds clause. It says that the broker can put money in the traders’ accounts on certain occasions- bonuses, to close positions, or in case the account becomes indebted. Clients can’t withdraw non-deposited funds, and they actually have to pay the money back, so it turns out that the broker allows an indebted account. Well, the British brokers are forced by law to provide Negative Balance Protection, so this clause alone proves that Ronghaninvest is unregulated and fraudulent.
Overall, Ronghaninvest is an exposed scam, so you should avoid it.
HOW DOES THE SCAM WORK
Swindling brokers and fraudulent websites appear literally every day. Still, most of the new schemes represent a modification of common fraud that’s not typical for the local markets but similar from country to country.
Nowadays, scammers are overcrowding the Internet and social media. The offers scammers make look legit and present exciting opportunities to invest money in the Forex market. Traders would get reassured that the people behind the broker have an excellent track record, who can secure high returns, seamless trading and guaranteed profits. The scammers intentionally make people believe Forex trading is risk-free, but actually, the opposite is true.
In the usual scenario, scammers just steal the money and won’t send a dollar back. Sooner or later, clients would ask for a withdrawal, but the con artists would delay or downright refuse transactions. If traders persist, scammers would find excuses to deny and would even ask for more money or directly cut the communication. Whatever the case, traders are going to lose some or all of the capital invested. At the end, when fraud becomes evident, the scammers would simply rebrand and start afresh, creating a new scheme under a different name.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If you get scammed, the first thing you need to do is to evade further risks. Deactivate your bank card immediately, contact the bank and ask for advice.
Report what happened, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly to recover funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible