First: platform risk. In China, only the paper gold and paper silver of Shanghai Gold Exchange, Shanghai Futures Exchange and banks are the precious metal trading places approved by the State Council, while other precious metal trading places such as XXX local government, XXX development zone and XXX financial office are illegal. Now, the so-called "illegal futures" are targeted by the state. Such institutions have been attacked several times in Shenzhen and are almost disappearing.
Second: the risk of trading mechanism. Precious metal trading is a leveraged trading, T+0 trading, which can be operated indefinitely on the same day, can be bought or shorted, and there is no price limit. At present, the trend of the domestic market follows that of the international market, but the trading hours of the two markets are staggered due to the time difference, which leads to the domestic transactions often plummeting with the international market, which is completely different from the stock market.
Third: transaction risk. Formal institutions all open bank fund custody, while illegal institutions generally operate with funds in their own accounts. In addition, the market of illegal institutions is also considered to be controlled by generations. They can spend hundreds of thousands of dollars to buy a set of quotation and trading software in the market, which will artificially increase the fluctuation range of the market or make the software unable to trade when the market fluctuates violently, and deliberately let customers explode their positions.
Fourth: routine risk. At first, illegal organizations will find a "very good teacher" to lead their customers to operate. At first, they will make money with the transaction, which will make people feel numb. They will also be asked to add funds or give their accounts to their professionals to handle some things. Soon, they will be exposed, and customers will lose everything in a short time. I have done background statistics in regular precious metals companies, and 99% of customers are losing money, not to mention illegal platforms.
Precious metal trading is attended by institutional investors abroad, which is not suitable for ordinary investors with insufficient domestic financial knowledge or trading experience. If you don't have a very deep foundation and family background, I suggest you stop as soon as possible or stay away completely. If you buy in kind, you will know the result by looking at "Chinese aunt"