Why?
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Why?
It's about time that those casino brokers become closed down in China. The way that brokers like IronFX and their IB's has fleeced money from investors and IB's is just ridiculous. China is NOT banning leveraged trading altogether since China itself does offer leveraged trading; it is only banning casino brokers as well as scam brokers (although BMFN is not) from operating in China and that is based on what many of the regulators such as FCA and SEC are doing in UK and USA respectively. Casino brokers are only fraud particularly with their lack of disclosure from China, it has created even more fiscal losses of the traders in China I'm sure. If they really need to continue to operate in China, they'd have to either operate in an PURE 100 percent agency-based or swap model like IB or even LMAX or with hedging against customer positions to be risk neutral like Oanda. I guess that the party is now over for casino FX brokers in China. BMFN had a good run for a decade. They ought to be pleased with that.Quote:
Originally Posted by ;
I enjoy how swiftly the Chinese authorities have clamped down these Currency Market broker wannabe's that give retail Forex a bad title. That is obviously a unified and very concerted efforts with investigation. I wish SEC had dealt with all the Madoff scam with such certainty and force. It would have saved investors $Billions of reductions.
LeapRate has discovered that Chinese governments have been approaching a number of overseas based Retail FX brokers with offices and operations in the nation, demanding that they immediately shut down any bodily presence in China.
The #8220;roundup#8221; of overseas FX brokers started about two weeks ago during the week leading up to the Chinese New Year (that was Friday February 16). The timing appears to have coincided with the two week period that many Chinese take as vaion time, right after the New Year holiday.
The agents and management of several FX brokers on the ground in China were summarily called, one by one, to a meeting with regulators. At every meeting, they were faced with something of a show-of-force, with agents of six Chinese government and regulatory agencies existing, including the police.
We detail below in an interview with a few of those men and women who had been in one of these meetings precisely what transpired, but in brief each broker was advised it is currently prohibited to operate as a FX broker in China offering leveraged trading of any type, and that they had to present a plan about how they were moving to each physically exit China within two weeks (i.e., by the time people return to work from the Chinese New Year holiday).
We also realize that Chinese governments are cracking down on these people and entities that were linking up overseas FX brokers with Chinese IBs and money managers, whether those brokers have bodily presence on the ground in China or not.
While no official pronouncements have yet to be made by Chinese governments, and we believe that not all overseas FX brokers in the nation have yet to be called in for a #8220;conversation #8221; together with authorities, we believe that these episodes indie the first measure of China banning leveraged trading. Https://www.leaprate.com/cryptocurrency/bitcoinchina/ that has become very popular (possibly too popular) in the nation, and it appears that hot on the heels of the decision they've decided to also ban leveraged FX and CFDs.
Here below is our dialogue with BMFN CEO Luis Sanchez, as noted above one of those Retail FX supervisors who had been summoned to and attended a few of those meetings with regulators. BMFN is a ASIC and Vanuatu licensed Retail FX broker, that had built up a large presence in China over the last 3 decades, with five offices in four Chinese cities. In under a month, BMFN has now shut down its entire operation in China.
https://www.leaprate.com/forex/regul...f-the-country/