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OTFX Trading Platform Review: High Risk (Ponzi scheme)

2023-11-29

OTFX is a Malaysia-based foreign exchange trading platform established in September 2023. This article will provide a comprehensive evaluation of OTFX, covering aspects such as regulatory licenses, trading instruments, trading software, fund security, deposit and withdrawal methods, leverage ratios, and more.

OTFX Company Overview:

OTFX Euro Exchange (OTFX) has its origins in the defunct investment scheme HIIFX (later renamed DRCFX). The corporate entity behind OTFX is OTFX PTY LTD, registered in Australia. OTFX Euro Exchange is the latest forex investment scheme introduced by the HIIFX International team and its leader Tan Kee Lin. The team invested heavily to acquire the OTFX domain, restarting their quest to attract investors.

OTFX Euro Exchange operates under three different corporate entities: OTFX PTY LTD registered in Australia, OTFX Limited registered in the UK, and OTFX LTD registered in the United States. These three companies were registered between May and August 2023. An investigation by TraderKnows found that OTFX Limited, the UK-based company, was registered on September 15, 2023, less than two months before the date of this report (November 3, 2023). Additionally, the director of this company, YEO, Chee Kong, is a 21-year-old Malaysian national born in November 2002. It is highly likely that YEO, Chee Kong is a nominee director, and the specific business activities of OTFX remain unclear.

According to a Whois domain information query, the OTFX domain was registered on September 7, 2005. It was acquired by the former HIIFX Group members and used as the official website domain.

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Is OTFX compliant and legal? Does it hold the appropriate financial regulatory licenses?

OTFX Euro Exchange claims to hold regulatory licenses from the US NFA, Canada's Fintrac MSB, and Australia's ASIC AR. However, a search revealed that OTFX's NFA registration information shows "Non-Member," which contradicts OTFX's public claims, raising concerns about false advertising.

Canada's Fintrac MSB is an anti-money laundering organization and is not related to OTFX's forex margin trading services. Fintrac MSB cannot regulate OTFX, leaving user funds without any protection.

The ASIC AR held by OTFX is issued by MGF CAPITAL PTY LTD. MGF's primary business is not retail forex, and the company does not have forex trading qualifications. Its main business is authorizing AR licenses, and it has authorized over 50 fraudulent groups.

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The Ultimate Controller Behind OTFX

OTFX Euro Exchange, formerly known as HIIFX International, was led by Tan Kee Lin. The leadership of HIIFX International in mainland China has largely been apprehended, but the top leadership remains at large in Vietnam, Malaysia, Singapore, and other regions.

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Trading Instruments Offered by OTFX

According to the official OTFX website, the broker offers financial asset trading services in forex, commodities, stock indices, and cryptocurrencies.

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Trading Software Offered by OTFX

On the broker's official website, it provides a download link for OTFX's trading software and an OTFX web-based trading platform. Proprietary software from brokers, unlike common MetaTrader software, lacks transparency, and users face high risks when using it. Brokers can manipulate prices, control the market, force liquidations, and engage in other unethical activities through this software.

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Fund Security

OTFX has not disclosed any information about third-party fund supervision on its official website, leaving user fund security uncertain.

Deposit and Withdrawal Channels

OTFX has not disclosed any information about user deposit and withdrawal channels on its official website, making it unclear how users can make deposits and withdrawals.

Leverage Ratios

The broker has not disclosed specific leverage ratios, leaving users unaware of whether OTFX's leverage ratios are compliant and controllable.

Conclusion

OTFX operates as a Ponzi scheme, luring unsuspecting investors with high returns and ultimately collapsing to exit with funds. The broker has not disclosed critical information about user fund security, leverage ratios, and deposit and withdrawal channels. OTFX is listed as a "Ponzi scheme" on TraderKnows.

TraderKnows reminds you that OTFX is a highly risky foreign exchange trader. Please stay away from this platform to avoid falling into OTFX's illegal fraud trap.

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Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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Ponzi Scheme

Ponzi scheme is a type of financial fraud model that promises high returns and pays early investors with the funds from new investors, ultimately leading to losses for the majority.

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Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

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