Recently, an investor broke the news that OTFX is doing business globally, creating the illusion of high heat through overwhelming marketing, however, in reality, OTFX is a newly created fraudulent platform by the gang of the vanished Ponzi scheme HIIFX (later renamed DRCFX and AE Global Link).

Meanwhile, FxGecko data shows that OTFX has a rating of only 1.59, with high risk signals in its profit model, regulatory information and other aspects.

I. Profit model of OTFX

OTFX claims that its business model is to make profit according to the trading commission, but in fact it is a Ponzi scheme, attracting funds by pulling heads. Their marketing tactics are very bold, such as: publicizing that the more money customers put in, the higher the percentage of grants they get, as shown in the chart below; introducing a friend to open an account with OTFX will get 2.5% of the friend's total invested funds as a dividend... This kind of unrealistic and super high rate of return can easily make inexperienced investors fall headlong into it.

However, OTFX's real goal is to get more and more investors to keep pumping money into the pool and to delay withdrawals as long as possible. Therefore, they will utilize the greed of human nature at the beginning, and give some profits to the investors who just joined in order to attract them to invest more. However, these dividends received by investors do not come from normal profits, but from the principal of the later. The scam will collapse once the new money coming in is not enough to pay the dividends to the previous investors, or if more investors realize the scam and withdraw their money.

So, if you are falling into this type of scam, we recommend that you withdraw your funds in time to avoid losses.

II. OTFX's regulatory information

OTFX uses a common fraudulent scheme to publicize the qualification of their platform, i.e., to create an image of trustworthiness by falsely claiming that they are regulated by NFA of the US, MSB of Canada and ASIC of Australia. Let's dismantle their "illusion" one by one.

First of all, for the American NFA, OTFX claimed to be regulated by it, but by checking the official website of NFA, the result shows that OTFX is not a member of NFA. As long as it is not a member of the NFA, it is not regulated by the NFA. This is also a common way for fraudulent platforms to fool inexperienced investors by pretending to be regulated with common registration information.

Secondly, OTFX claims to be regulated by Fintrac MSB in Canada. However, Fintrac MSB is an anti-money laundering organization for money transfer and remittance companies in Canada, and does not regulate financial product trading platforms such as OTFX, which uses the similar but different terms of foreign exchange and foreign exchange margin trading to mislead investors.

If you are interested, you can go to the official website of Canada's Fintrac MSB (https://fintrac-canafe.canada.ca/intro-eng) to take a look at their introduction.

Lastly, OTFX claims to be regulated by ASIC Australia, but they are actually just an Authorized Representative (Australian Financial Services Authorised Representative, commonly known as Australian AR License) and are not directly regulated by ASIC. Moreover, the company they represent, MGF CAPITAL PTY LTD, is also very suspicious. A search shows that MGF CAPITAL PTY LTD currently authorizes more than 30 companies, many of which are notorious fraud platforms, such as BMA (BUSINESS MILLION ASIA). This makes it hard not to wonder if this company is specializing in issuing Australian AR licenses for platforms of unknown origin.

In addition, OTFX emphasizes the safety and security of clients' funds on their official website, claiming that the funds are deposited in segregated accounts with top banks and are regulated by ASIC in Australia. However, they do not specify exactly where the segregated account is located, which top banks are, and the relationship between the so-called Securities and Futures Act and their AR license authority. In other words, the probability is that the money investors put into Eurofins OTFX goes into the pockets of the people who belong to the platform, and once they roll up their money and run away, investors will have no recourse.

To summarize, we hope that you will remain vigilant and not be confused by OTFX's flashy publicity. Before making any investment, it is recommended to carefully research and understand the authenticity, regulatory background and compliance of the platform in question (you can use FxGecko APP to check the relevant information). Cautious judgment and rational decision-making is an important part of protecting personal property safety.

You can check the regulatory licenses, security scores, customer complaints and other information about global trading platforms at FxGecko to avoid any potential scams.

If you encounter any problem with a forex broker or crypto exchange, you can file a complaint at FxGecko APP for help.

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