At present, foreign exchange margin trading has no legal status in China, and it is still in a gray area. Therefore, when overseas institutions engage in related operations, they often lay many traps for customers. From the signing of the contract, to the qualification of the trader, to the commission and interest paid inexplicably, customers will fall into the trap if they keep it secret. At this point, the standard terms when signing a contract make it more difficult for customers to defend their rights overseas. Even without these provisions, customers rarely have the ability to fight an expensive lawsuit abroad.

The biggest problem in overseas transactions is the credit of brokerage companies. Investors are profitable and want to use profitable funds. Brokerage companies will let investors fill out an application form online, and the brokerage companies will transfer the money to the bank account designated by the investors. However, some fraudulent companies have taken investors' money, but they have no contact with banks. If they lose money, of course, they will deduct investors' money; If you make money, the investor's account may not increase the income. After all, these companies are "liar companies". Because they are far from home, investors can't settle accounts with them at all, so they have to swallow the bitter fruit.

1In August 1994, the central bank, the State Administration of Foreign Exchange, the China Securities Regulatory Commission and the Ministry of Public Security jointly issued the Notice on Strictly Investigating Illegal Foreign Exchange Futures and Foreign Exchange Deposits, stating: "Since 1980, the relevant departments in the State Council have only approved designated foreign exchange banks and a few non-bank financial institutions to conduct spot foreign exchange transactions on behalf of customers, and never approved any unit to conduct foreign exchange futures on behalf of customers. Since then, the management has always denied and severely cracked down on any form of foreign exchange deposit and forex futures trading.

However, foreign exchange margin trading did not disappear in China because of the government's explicit prohibition. Since 10, it has been semi-publicly sneaking in the gray area, and online foreign exchange margin trading has bypassed foreign countries and returned to China with the help of the Internet. In the past two years, a large number of overseas financial institutions have set up subsidiaries in China in the name of consulting companies, encouraging domestic customers to take various ways to remit foreign currency abroad, thus avoiding the minefield of policies. The whole account opening process is very simple. If you want to speculate on margin, the general customer only needs to remit the funds to the designated overseas account, fax the copy of ID card and handwritten signature, and the other party will tell the customer the account name and trading password, so that the customer can trade with the trading software downloaded online. If you want to withdraw money, you only need to fill in an application form online, and the brokerage company will transfer the money to the account designated by the customer. The process is as follows: open an account-remit money to an overseas account-engage in online margin trading-remit the proceeds back to China. This is curve speculation.

So I suggest that you don't trust the words of these financial companies. You'd better go to China Merchants Bank, Bank of Communications, Huaxia Bank and other banks that open foreign exchange transactions and other formal channels to speculate in foreign exchange (it is said that Huaxia Bank has the lowest handling fee and can negotiate to reduce the rate).