1. Management
Supervision is also an important factor to judge whether foreign exchange brokers are black platforms. Generally speaking, black platforms are usually unlicensed or deck cards, or supervised but without foreign exchange bureaus.
If it is regulated, it can be inquired by the regulatory authorities. For example, ZFX Shanhai Securities is regulated by FCA in the UK. Let's take a look at the supervision of FCA.
First of all, the supervision of FCA is one of the best in the market. Basically, you can directly find out whether it is unlicensed, deck or authority from the regulatory information.
This is the result found on FCA. Obviously zeal Capital Limited is supervised by FCA, so how to judge whether it is a deck?
Very simple, look at the website disclosure on the regulatory information. If the website is correct, it can directly prove that it is not a deck.
So, do you have the operating authority for foreign exchange margin trading?
Find this column in the regulatory information. If you look at the type of customers, are you qualified to provide foreign exchange margin trading for retail investors? Second, see if there is a rolling spot foreign exchange contract. If there are these two, it proves that there is no problem with supervision.
It is a formal supervision, and the application for this supervision is relatively difficult, requiring a capital requirement of 730,000 euros, so it proves that this platform is still very powerful.
2. Background and history
If foreign exchange dealers come to China in the early days, we will generally consider the authenticity of this platform. Generally speaking, all foreign exchange dealers will advertise that they are foreign, because foreign exchange margin trading has not been opened in China, and dealers can only conduct it through foreign dealers.
In the early days of the platform coming to China, we usually look at the company's background and how many years it has been established (you can look at English websites, even if there are English websites on black platforms, they are often translated in Chinese, and the contents are full of mistakes), and then look at the company's website. Generally speaking, the black platform will be reflected in the website, because the black platform generally makes quick money, unlike long-term operation, so the website will be very low; ; Secondly, looking at the text on the website, the formal platform generally has a compliance department, which will specifically review the company's publicity to ensure that it will not mislead investors.
The website ZFX Shanhai Securities Foreign Exchange has obviously invested time and energy, so it has done a good job in this respect and there are many risk warnings.
3. Trading software
Trading software is also important. Many black platforms are buying pirated software. At present, the mainstream trading software on the market is MT4, so taking MT4 as an example, it is a very good method to verify the authenticity of MT4 software.
So how to check?
A very simple way is to download a mobile version of MT4, and then search to see if there is a server for your trader. Generally speaking, if there is, it proves that the software of this company is ok.
This trader can download and verify by himself to see if there is ZFX Shanhai Securities.
4. Trade environment
The trading environment is also a very good judgment point. Someone asked, what do you think of the trading environment?
Most traders will provide simulated accounts, in which traders can conduct simulated transactions and try to see the simulated trading environment. This is an important point to see the spread of this trader.
Of course, simulated trading is only one aspect.
Other aspects can try the trading environment through a small amount.
5. Deposit and withdrawal
Deposit and withdrawal is also very important. Regular trading platforms deposit and withdraw money smoothly, which is usually completed within 2-24 hours. Even if there are special circumstances, they will explain to customers.
But if the platform is black, you may not be allowed to withdraw money, but only allowed to save money. Generally, the black platform will not do this at first, but it will prove that there may be problems in the later stage.
At the same time, the way of deposit and withdrawal is also an important factor, and telegraphic transfer and UnionPay are common ways.