More details at WikiFX App, which is available on Apple Store and Google Play.
Regulatory status: overrun
Complainant: Mr. Jin
Cause of complaint: blocking investor’s withdrawal
Nowadays, the proliferation of brokers on the forex market makes it harder for investors to make a choice. Without knowing about the brokers thoroughly, investors can be easily swindled by illegal brokers. Recently, Mr. Jin reported the illegal forex broker AILEN to WikiFX and shared his experience.
In early June this year, Mr. Jin signed up at AILEN who claimed to be regulated by NFA(US) and started trading. Coaxed by a signal-provider, he made several deposits that added up to over US$400,000 earlier in his investment; yet the large input failed to bring proportional profits, as he lost approximately US$70,000 in trading. Feeling much discouraged, Mr. Jin began to withdraw his money. Having successfully withdrawn US$200,000 through separate applications, Mr. Jin again applied to withdraw US$5,000 on July 27th. But unlike before, the application remained “in progress” for 3 days. Completely disappointed, Mr. Jin decided to withdraw his remaining balance on July 30th, and the application was once again ignored. Mr. Jin tried to contact the signal provider, who offered no solution besides claiming that “he was also a victim”, which sounded like a lame excuse. Meanwhile, Mr. Jin also contacted AILEN’s customer service but failed to get any reply. To date, Mr. Jin still has US$16,000 in his account yet to be withdrawn. AILEN has defrauded investor by ignoring withdrawal applications and detaining investor’s capital.
Mr. Jin fell victim to the scam largely because AILEN called itself a broker under NFA(US)’s strict regulation, yet further investigation of the broker’s profile proved the statement unreliable.
- AILEN’s regulatory information is inconsistent with its official website
AILEN’s official website claims it holds NFA license with regulatory number 0502205, but upon checking NFA website, the license belongs to a company named ACERICH, which is not in business at the moment.
Strangely enough, AILEN’s information can be found on NFA website and its regulatory number is 0520444. Though the reason for this inconsistency is yet unknown, one thing certain is that AILEN’s information on its website doesn’t match the regulatory information.
2. A newly registered domain name
Per investigation, AILEN’s official website was registered only about half a year ago on January 24th, 2019, suggesting low credibility and insufficient experience of the broker.
3. Trading software
According to the WikiFX App, AILEN uses white-label MT4/5 software with servers set up in Singapore and Hong Kong respectively. White-label brokers usually have higher risks, so investors must be careful in choosing such brokers
WikiFX App shows AILEN holds an NFA(US) license for generic financial services and is currently operating in overrun business. The broker with a WikiFX rating of 1.20 has low credibility, and WikiFX suggests investors to stay away from it.
The example once again reminds investors to check a broker’s compliance, regulation and other information through reliable sources before making an investment decision. To learn more about information of forex brokers, please visit the WikiFX App or WikiFX website.