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Investor: Don't let these three blindfolds blind your eyes!

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What is the first step in a successful investment transaction?
For this question, many people first think of "financial professional background", "technical analysis level" and other answers, but the answer given in this paper is: formal trading platform. Its importance can be seen in the following two sets of official statistics:
Australians lost more than A $70 million ($51.42 million) in investment fraud in the first half of 2021, according to Australian Financial fraud Statistics for the first half of 2021 released by the Australian Competition and Consumer Commission (ACCC).
A total of 322,000 cases of telecom and Internet fraud were solved in the year, saving a total loss of 187.6 billion yuan ($645 million), according to a work conference on combating and preventing telecom and Internet fraud held by Chinese public security authorities in 2020.
This shows that the choice of regular trading platform for novice traders is the basis of everything else. This article will show some "fake" trading platform smoke screen, uncover the real face behind the fake trading platform.

Fake trading platform 3 common kinds of camouflage

General fake trading platform, or choose the name of fake formal platform, or pretend to be supervised by a country's financial institutions, or pretend to be a well-known trading platform in the local branch, are very "normal" on the surface, but a little check will find that the original is very "false".
1. Clone formal platform websites
Completely copy the formal platform website, using similar URL, exactly the same or only slightly different platform Logo and website visual design, the same website structure...... Investors who are not familiar with the platform will mistakenly believe that they are entering a formal platform, until they find that their invested or profitable funds cannot be withdrawn for a long time.
Platforms such as GO Markets and AVATrade have been impersonated by fraudulent websites. Take the experience of being swindled by fake AVATrade as an example:
The netizen was recommended by a trading tutor on a social stock forum to trade weighted indexes on a fake AVATrade platform. In one transaction, users lost $60,000 because the fake platform created fake prices. When angry netizens complained to the real AVATrade platform, they were told they had been cheated by the fake platform.
Clone platform camouflage is very clever, it is hard to see the problem. Do not trust the platform link sent by netizens, it is better to download a trading software through the authoritative media or official website.
2. Pretending to be supervised by an institution
As we all know, trading platforms need to be regulated by the financial institution where the platform is registered and obtain the appropriate license before they can engage in financial trading activities. So formal platforms will publish the regulatory agencies and regulatory number in their official website.
Many scammers take advantage of this, fearlessly claiming to be regulated by one or more countries and publishing their fictitious regulatory numbers. Investors will mistakenly believe that they have chosen a great platform, once investors do not go to the relevant regulatory authorities to verify, they will fall into the trap of fraudsters.
One victim of AAFX Trading says he made more than $250,000 in a few months by investing in the stock. As a result, the platform shut down his account for no reason before he could submit his application.
AAFX Trading claims to be registered in St Vincent, but in fact the St Vincent FSA does not regulate derivatives. Scammers exploit investors' unfamiliarity with institutional regulatory policies to set traps. Once investors get a fuller picture of the trading platform, AAFX Trading has been warned by both Hong Kong's SFC and the US CFTC.
So don't blindly listen to a platform that claims to be regulated, but verify the platform on its declared regulator's official website, to see whether the registration information of the regulatory license is consistent with the information of the claimed company, so as to avoid being cheated by the platform that claims to be regulated.
3. Pretend to be an agent or branch
Fraud by agents posing as well-known dealers or their local subsidiaries is also common.
According to a victim of the Profit Market platform, he accidentally approached Profit Market when it claimed to be the Hong Kong arm of CMC Markets, had been operating for years and was regulated by the FCA. Due to the trust in CMC Markets and FCA, the victim invested 320,000 USD successively. When the profit of her account reached 690,000 USD, the victim realized that she had been cheated by the fake platform.
Realizing this, the victim went to the CMC Markets website and was told by a customer service officer that he did not know Profit Market and that the company was not their Hong Kong branch. And its published supervision number, registration information found in the FCA official website is also inconsistent with the platform information. All reliable identities are lies fabricated by Profit Market.

How to identify the authenticity of a trading platform?

By summarizing the experiences of the real victims mentioned above, we can draw the following conclusions about identifying the authenticity of a trading platform:
1. Obtain the platform address from official channels
Many victims fall prey to fake trading platforms, mainly due to social friend recommendations. The Internet is a kaleidoscope where it is difficult to judge the identity of other netizens.
Therefore, don't blindly trust their recommendations. Download trading software from industry media, regulatory lists and dealers’ official websites to ensure safety.
2. Learn to verify authenticity from regulatory agencies
Since trading platforms must obtain a regulatory licence to operate, learning to verify that regulation is the strongest weapon in their defence. Generally speaking, regulators will publish a list of regulated entities on their websites. Some regulators, such as the FCA, will even publish a list of cloned platforms on a regular basis.

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  • 當大環境不好的時候,我一般不炒股。

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  • It is important to check the official website more and pay more attention to regulatory developments.

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  • Counterfeit platforms are nothing, there are fake regulators.

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  • The real platform looks so much like the fake one, I almost got scammed.

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  • Some time ago, I saw some people around me were cheated by the fake platform, they are too hateful.

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  • What a crafty liar. Thanks for the warning.

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