Recently, an investor reported that CEMX was unable to withdraw funds for up to six months.
According to the information provided by the investor, CEMX's trading model is the AB account model. In October last year, CEMX system upgrade maintenance as a reason for not allowing customers to withdraw funds; later, CEMX resume normal trading, but again with the channel maintenance as a reason for not being able to withdraw funds!
FxGecko has sent the complaint to CEMX for resolution but has not yet received a response from them.
FxGecko APP data shows that CEMX (Cemx International Limited) has a rating of only 2.8, its forex trading and brokerage business is unregulated and is a high risk trading platform, beware!
For the platform claims that the AB insurance account model is a trading strategy and an investment trap commonly used by fraudulent trading platforms. That is, the trader opens two accounts, one for A account and one for B account. The two accounts are allocated funds according to a certain ratio, usually 2:1, with the client trading on account A and using account B to provide hedging.
The fraudulent platform will promise the client a stable return of 5%-30% by using the AB account to hedge the trade. If the A account loses money, the B account insurance kicks in and can replenish the A account funds to the original state in order to wait for another trade.
Does it sound tempting?
In reality, however, since the trading process on the platform is not transparent and the client has no way of knowing the real trading situation, the fraudulent platform can easily manipulate the trading behind the scenes and appropriate the client's profit. If the client wants to withdraw his capital with interest, he must continuously deposit, trade and make profits until he meets the platform's requirements. This creates a vicious cycle that traps investors.
In recent years, with the collapse of fraudulent forex brokers using this strategy, such as HIIFX and TR Forex, the myth of profitable AB insurance accounts has been largely dashed.
However, there are still many scammers who try to use the modified AB insurance account model to cheat investors who do not know much about it. Their scheme is actually very easy to distinguish, as FxGecko has also exposed many times: scammers will promise "sure-fire" investment opportunities, fabricate false regulatory information, create false trading data, and make investors invest more and more money, and when investors find out that something is wrong, the scammers have already disappeared.
In a nutshell, FxGecko advises that you should always be cautious when you come across investment opportunities that promise high returns with little or no risk. These are likely to be scams.
Click here to recognize common investment trading scams to avoid being scammed.
Click here to see how to check if a broker is safe and what to do if you encounter a scam broker.
You should "ask, check and confirm" before investing.
You can check the regulatory licenses, security scores, customer complaints and other information about global trading platforms at FxGecko APP to avoid any potential scams.
You can also file a complaint against any problematic broker to seek a solution, or expose a scam broker to alert others not to be scammed.
