How is the deposit and withdrawal considered formal and reasonable?

Before talking about deposits and withdrawals, I have to talk about the current situation of foreign exchange brokers. Looking at the global foreign exchange market, there are not many mature foreign exchange brokers, such as: GAIN Capital, FXCM, Anda, IG, Avery, Saxo, CMC, Hantec, FXDD, these brokers are all under strict supervision, and all Deposits and withdrawals are made by wire transfer. The industry basically defaults that as long as it is not a wire transfer deposit and withdrawal, there must be no guarantee, and it must be public to private. Here I have to talk about the supervision of Switzerland. Since Switzerland began to reshuffle the foreign exchange market, institutions without a banking license are not qualified to carry out foreign exchange margin business. With the emergence of this rule, only Swissquote Bank and Dukas are left in Switzerland. Bay Bank.

Before the US-China trade war:

1. Only wire transfers are legal for entry and exit.

2. If it is RMB deposit and withdrawal, it will definitely be excluded.

3. Must be public to private.

4. There are fees for both public and private deposits and withdrawals.

5. Most of the deposits are domestic handling fees plus intermediary bank handling fees.

6. Withdrawal is also the intermediary bank fee.

7. The deposit and withdrawal bank transfer records must have the company name of the platform.

Remarks: Before the trade war, people in the foreign exchange trading industry would use the above rules to judge whether a platform is a formal platform. Of course, before depositing and withdrawing money, first check whether the platform is operating in compliance and whether it is recognized by the industry The license mentioned here must be onshore supervision instead of the current offshore supervision...

After the US-China trade war:

When talking about the status quo of deposits and withdrawals after the Sino-US trade war, I have to talk about why such a phenomenon occurs? The issue of deposits and withdrawals in the past two years is obviously different from the previous two or three years. Our country itself does not currently open foreign exchange margin trading business. Most of the deposit and withdrawal methods in the industry are mainly wire transfers, and the reason for the electricity bill is private tourism. Because the current international situation is tense, the flow of foreign exchange for unknown reasons will indirectly cause a social crisis. In addition, the foreign exchange regulatory rules of various countries have also shown a trend of deleveraging, including the NFA of the United States, the FCA of the United Kingdom successively reduced leverage, and later the European Union also reduced leverage. Australian regulations directly exclude customers from mainland China. Including the later international payment giant VISA also canceled the deposit and withdrawal business of foreign exchange business.

1. Slowly replace the previous mainstream regulation with offshore regulation.

2. Slowly change from the previous wire transfer to UnionPay tripartite payment.

3. What's more, it is changed to digital currency payment.

Remarks: The purpose of changing the first article from mainstream supervision to offshore supervision is to cater to customers in mainland China to provide higher leverage, and to avoid their own non-compliant business methods. Because mainstream regulation will impose very high rules on some non-compliant business methods, which will directly result in huge fines. Moreover, the annual license membership fee for mainstream regulation is also relatively high. Offshore supervision and some island country supervision basically have no legal efficiency in the foreign exchange market. Once any risks arise, there is basically no guarantee for the interests of customers. The second article is mainly based on wire transfer and changed to UnionPay tripartite payment. The purpose is to avoid the supervision of China’s foreign exchange administration. It is currently experiencing a trade war. If the withdrawal is made by wire transfer, it cannot avoid public-to-private. Public and private withdrawals will not be accounted for, and proof of source of funds must be provided. Therefore, many formal platforms have also begun to use UnionPay third-party payment. This can avoid SAFE supervision. It can also save the foreign exchange quota for customers in a beautiful name.

Summary: In the current foreign exchange market, it is not possible to judge whether a platform is upright or not by simply using deposit and withdrawal methods. First of all, the first problem for investors to solve is to determine whether the platform is formal, not whether the deposit and withdrawal are formal? Because at present, even formal platforms cannot use formal deposit and withdrawal methods.

Welcome everyone to advise and share

All the above statements are actual problems and current situations that I have experienced over the years.