WikiFX Scam Alert: Beware of newhongshengfx.com!

Despite the Chinese name, NewHongshengFX claims to be a UK-based forex brokerage. Unfortunately, they aren't regulated, and show many signs of scam.

source: https://www.wikifx.com/en/dealer/3761585989.html

Is NewHongshengFX legit？

The address of this broker is in the UK but it claims to have offices in Zurich, Hong Kong, Dubai and Tokyo as well. However, after checking the register of the Financial Conduct Authority (FCA), the official body that regulates forex brokers in the UK, it became clear that this broker is not to be found (screenshot below). This is sufficient proof that this broker is non-licensed, non-regulated and is probably a scammer. WikiFX does not advise any potential traders to entrust its money to New Hongsheng.

Here is all the contact information available on the brokers website:

As you can see, the address belongs to Oge Solutions, and this is a London-based firm providing procurement outsourcing and contract management services, which doesn‘t appear related to NewHongshengFX. So the latter is probably illegally using the details of this company. And even if it doesn’t, that doesn‘t make it more reliable, because the above mentioned company isn’t a licensed financial services provider either.

Otherwise, the broker hasn‘t provided a phone number, nor any legal documents such as Terms and Conditions or a Client Agreement, which is utterly unprofessional and unacceptable for any entity that handles clients’ money. This only further confirms our suspicion that NewHongshengFX is a scam brokerage.

Exposures related to NewHongshengFX on WikiFX are as follows:

source: https://exposure.wikifx.com/en/exposure/3761585989.html

Review from one of the victims:

source: https://www.forexpeacearmy.com/community/threads/newhongshengfx-com-scammer.68083/

How to avoid a forex scam

The best thing that you can do to avoid a forex scam is to educate yourself. The more you know, the less likely you are to be taken advantage of.

Do your research—learn more about the foreign exchange market, terminology, and the legitimate resources to assist you with trading. Consider setting up a demo trading account with a trusted broker to practice before putting actual money on the line.

As with any type of investing, take your time before you make decisions with your money. For example, you can use a global corporate financial information searching tool such as WikiFX (https://www.wikifx.com/en/), whose core function is to provide basic information searching, regulatory license searching, credit evaluation, platform identification and other services to the included foreign exchange trading companies.

It is recommended to partner with a regulated broker with a well-established reputation, flawless track record, and has positive feedback from previous and existing investors to avoid becoming a victim of a foreign exchange trading scam. While the allure of quick returns is hard to dismiss, it is best to err on the side of caution and be more thorough in your vetting process.