Beware! Ronghui 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.
When we open the website of Ronghui, or Ronghui Group Co., Ltd, we see the claim that it is a “leading independent forex broker”. But this website, whose English version is a poor translation of the main Chinese version, provides no evidence that it is a genuine financial services provider. In this review, we’ll look in detail at why it’s in your best interest to stay as far away as possible from Ronghui.
Ronghui Regulation and safety of funds
|Guaranteed Funds||Segregated Accounts||Negative balance protection|
|UK regulated brokers||£85 000||Yes||Yes|
|EU regulated brokers||€20 000||Yes||Yes|
|AU regulated brokers||No||Yes||Yes|
|US regulted brokers||Yes||Yes||No|
If a financial services provider is legitimate, you will find on its website clear and detailed information about the company that owns and operates it, where it is based, and what licences it has. Genuine brokers also provide access to a comprehensive set of legal documentation. The availability of such information does not guarantee that it is not false or misleading. But the absence of these elements is very indicative that in all likelihood you are dealing with scammers.
It seemed logical that the company behind this supposed broker would be Ronghui Group Co. Ltd, but the website makes it clear that it’s actually a brand name. The home page lists the company Dusas Market Ltd as the owner of the website.
The name of this company also pops up behind another shady broker we have reviewed, Cang Limited.
Ronghui does not provide access to Terms and Conditions or other legal documentation. Because of this, we do not know exactly who we are dealing with, nor what the terms of the deal are.
The website provides a UK contact address which is undoubtedly fake.
A check with the relevant financial regulators shows that Ronghui is not an authorised provider of brokerage services.
Before investing your money in financial instruments, it is imperative to make sure you do so through a licensed intermediary and not one of the many scammers lurking online.
Depending on your location, it is advisable to choose a company that is regulated by an institution such as Commodity Futures Trading Commission (CFTC) in the US, Australian Securities and Exchanges Commission (ASIC), UK’s Financial Conduct Authority (FCA) or some EU regulator like Cyprus Securities and Exchange Commission (CySEC).
Clients of these brokers receive protections such as negative balance protection and segregation of the client’s funds from the broker’s funds. In the EU and the UK, brokers must also participate in guarantee schemes that cover a certain amount of the trader’s investment if the broker becomes insolvent. These guarantees amount to up to 20 000 EUR in the EU and 85 000 GBP in the UK.
Ronghui Trading software
|Analytical tools||Auto trading||Custom indicators||Mobile apps|
|cTrader||40+ indicators||✅||✅||Android and iOS|
Ronghui claims to offer the industry’s most widely used trading platform, MetaTrader 5 (MT5). But the links to download the software are not active.
In addition, at the time of writing this review, it was not possible to register a new account or log into an existing one. Therefore, we were unable to determine whether Ronghui has any trading software.
It is advisable to contact one of the many legitimate brokers that offer MT5 or the still very popular MT4. These platforms have established themselves as leaders because they offer a wide range of features, including a wide variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
Ronghui Trading instruments
Ronghui claims to offer trading in currencies, indices and commodities.But there is no detailed information on the terms of trade on the website.
Genuine forex brokers provide detailed information about the trading conditions. Legitimate companies also offer different account types to suit clients with different experience, capital and investment intentions.
Ronghui Spreads and cost of trading
On the website we see a table with average spreads that promises levels of 1 – 1.5 pips. This is comparable to industry averages, but we have no way of knowing if it is true.
In fact, we have no reason to believe that this dubious website offers real trading.
Ronghui Maximum leverage
|UK regulated brokers||30:1||5:1||❌||10:1||10:1|
|EU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|AU regulated brokers||30:1||5:1||2:1||10:1||10:1|
|US regulated brokers||50:1||❌||❌||❌||❌|
Ronghui advertises that it allows trading with leverage up to 1:400. This is further evidence that Ronghui is not a licensed broker based in the UK.
High leverage creates the opportunity for more significant profit, but correspondingly increases the risk of sudden and excessive losses. All leading regulators therefore restrict leverage for retail traders. The FCA, like EU regulators, limits leverage to 1:30 for trading in major currency pairs and even lower levels for more volatile assets. The same rules currently apply to Australia. In the US, the maximum limit is slightly higher at 1:50.
Regulated brokers offer higher leverage only to professional clients who must meet very high standards for capital and experience and forgo the guarantees enjoyed by retail traders.
If you don’t qualify as a professional trader but are willing to take the risk of high-leverage trading, the most viable option is to use the services of an offshore affiliate of an established brand.
Ronghui Deposit and withdrawal methods
It is not clear what payment methods Ronghui uses.
Legitimate brokers typically offer clients a wide choice of transparent payment methods, including bank transfer, credit/debit cards and established e-wallets such as PayPal, UnionPay or FasaPay.
Scammers prefer cryptocurrencies because these transactions are not subject to refunds. If you’re interested in legitimate brokers that accept digital currency payments alongside conventional methods, check out this list.
Ronghui Minimum deposit
Ronghui requires a minimum deposit of 1000 USD. For a significantly lower amount you could open a starter account with almost any licensed broker.
|Trading volume||Fee/Tax on withdrawal||Minimum withdrawal|
|Ronghui||Not specified||Not specified||Not specified|
|UK regulated brokers||No||No||No|
|EU regulated brokers||No||No||No|
|AU regulated brokers||No||No||No|
|US regulated brokers||No||No||No|
Since Ronghui does not provide proper legal documentation, it is unclear what traps the fraudsters may have set. Typically, fake brokers make withdrawing money impossible through huge fees and impossible-to-fulfil traded volume conditions.