Forex.com treated Chinese customers unfairly, GGMI is Cayman licensed
As an established company of forex industry, Forex.com claimed that they are FCA-regulated broker, so as to expand marketshare in China. However, at the end of July this year, all clients of Forex.comreceived a notification: Because of GAIN Capital’s internal restructuring, all business moved from GAIN Capital - FOREX.com UK Limited B [/B]to GAIN Capital UK Ltd B[/B]. The agreement take effect at August 27, 2016. The regulatory status of GCUK1 is applied to cancel at present.
Chinese customers suffer unfair treatment
Only three months after this restructuring, new accounts from mainland China, Hong Kong, Taiwan are default to GAIN Global Markets,Inc., which is acompany Forex.com set up in Cayman islands, and Chinese customers are alsodefault to Cayman Islands (CIMA) regulation, it means that these newaccounts are no longer under FCA regulation, they can’t get compensation of FSCS. However, in other regions, such asthe United Kingdom, Japan, Korea, Singapore, Germany, France, Russia, the Netherlands, their accounts are still authorized by FCA.
The way Forex.com treated Chinese customersis similar to Samsung, the latter denied quality problem of Note7 in Chinese market after several explosion happened , what makes Chinese feel humiliated most was it exclude Chinese market from the ranks of recall. “Samsungexplosion gate” almost ruin it’s painstakingly operated brand reputation.
If it is just for the need of “ease financial pressure”, Why treated Chinese customers differently? Why didnot replace all new customers to Cayman? Is it longtime arrogant or Forex.com think Chinese are " fool people, mass money"?
At the bottom of Account Application Form of Chinese customers is marked by GAIN Global Markets, Inc., which is a company of Forex.com in Cayman islands.
Comparatively, when we visit Forex.com websitewith IP of UK, Japan, Korea, Singapore, Germany, France, Russia and Holland, the mark in the bottom of the Account Application Form are GAIN Capital UK( GCUK2 ,FCA regulated).
Forex.com use $ 5,000 to get a Cayman license
GAIN Global Markets,Inc., take Cayman Islands Securities investment business license in 2007 of Authority of Arranger, which is the cheapest among all security licenses with $304.88 application fee, $4878.05 license fee and $4878.05 annual fee. On the one hand, such a small sum of money, can get a Cayman license. On the other hand, we did not find a channel for complaints and compensation of financialdisputes in CIMA, which is the monetary authority of Cayman island.
We can come to the conclusion that Cayman regulation can’t protect customer’s financial security .
No 100% financial security, giant company even go bankrupt
Many financial giant go bankrupt overnight,don’t believe 100% financial security. Lehman Brothers was once the fourth largest investment company of Wall Street, it’s assets that year amounted to $691 billion and suddenly fell down. Washington Mutual Bank, the nation’s sixth-largest bank with assets of $ 327.9 billion, was bankrupted by government bail-outs as clients worried about insolvent and withdraw deposit of $16 billion within 10 days. And well-known Refco Financial, Gabriel Financial, Man Financial, Bank of the United States and so on, and some Chinese customers have not get their money so far.
FX110 as China’s most influential forex portal, take the responsibility to make risk tips. Because of Chinese customers of Forex.com are default to this Cayman regulated company, it no longe rcomply with our standard of regulated broker. Therefore, from now on, Forex.comwill no longer in our regulated broker list and FBA evaluation column.