ZonggangCaifu Review (2023)

Is ZonggangCaifu a scam or a legit broker?

ZonggangCaifu is not a secure Forex broker since it does not hold a license from any worldwide serious Forex authority. Meaning the broker is suspected of being a fraud company since it was not checked for its compliance before establishment, never monitored in terms of its safety and simply may operate the business in any way it wishes.

ZonggangCaifu is a Forex and CFDs broker. The company is owned and operated by Zongangguoxin Group Limited and claims to have offices in Hong Kong, UK and the USA. Also, according to broker’s website, it is regulated by multiple authorities in different countries: Australian Securities & Investment Commission (ASIC), Securities and Futures Commission of Hong Kong (SFC), China Banking Regulatory Commission (CBRC) and New Zealand’s Financial Markets Authority (FMA). However, we have checked the information about all these licenses and it turned out ZonggangCaifu is not regulated by any regulator.
Moreover, New Zealand’s FMA has issued a warning against ZonggangCaifu:
“ZonggangCaifu is not registered, licensed, or regulated in New Zealand as claimed on its websites. The financial service provider registration numbers of FSP1782, FSP1762, FSP488226 and FSP536586 displayed on ZonggangCaifu’s websites belong to KVB Kunlun group of companies. KVB Kunlun is NOT affiliated with ZonggangCaifu and its websites. ZonggangCaifu could be involved in a scam.”
Also, there is a warning from Securities and Futures Commission of Hong Kong:
“The above Hong Kong address belongs to a secretarial company. Suspicious website operators often use names similar to legitimate companies to confuse investors.”

Conclusion

To sum up, ZonggangCaifu is an unregulated forex broker and it is the biggest concern as the lack of license adds additional risk to forex trading ( Check top 10 forex brokers in the world). On the other hand, those brokers regulated by reputable authorities have to follow a lot of rules that are made to protect clients. For example, there is a minimum capital requirement they need to meet and also, they need to keep the accounts segregated. Check the list of the ones imposed by the Australian Securities & Investment Commission (ASIC). 

ZonggangCaifu website is no longer active.