USGFX is an Australian online trading broker that offers clients Forex, indices, and CFD trading. The firm also provides people with the possibility to perform trades on the popular MT4 and mT5 platforms. However, this USGFX review will reveal all of their schemes and the problems that have plagued this company throughout the years, some more severe than others.
USGFX is not a broker that you should trust with your money and personal details, especially after reading the shocking happenings that we will reveal in this review. Trusting your money with this scam broker is not only unsafe but also seriously dangerous for you. Here are more details about what happened with USGFX and some of the reasons why everybody should keep as far away as possible from them.
The USGFX hostage issue
Back in 2017, some men stormed the USGFX offices in Shanghai, sealed every exit, and seized the phones of the twenty employees there. It was a hostage situation caused by the company’s problems with their customers. More precisely, the extortion attempt was provoked by a series of huge trading losses caused by the broker. Apparently, this dispute had been building up for quite some time with a certain employee of USGFX being at the center of it all.
After 24 hours of being kept hostage, the unidentified men released 17 of the employees. The last three ones were kept in there for five days more. It took a series of negotiations for the men to finally release the remaining prisoners. According to some Chinese USGFX investors, they lost about $2.6 million in Forex trades because of this broker. So, the hostage situation was their way of obtaining compensation. However, the problems did not stop there for this broker.
Back in December 2019, ASIC issued an interim restraining order on the assets belonging to USGFX. Since then, the online broker has been kept under ASIC investigations. It’s worth noting that two other companies were affected by this restraining order. EuropeFX and TradeFred are two other brokers that you should never trust your money with. Thankfully, EuropeFX was shut down soon after and its director was placed under a no travel ban and received criminal charges in court.
Moreover, all of the EuropeFX clients were moved to USGFX. However, it’s crystal clear that all of the scams performed by EuropeFX were not hidden from USGFX and were probably even done for them. This means that if you are currently a client of this broker, you should get out as soon as possible before USGFX crashes too with your money. It seems that ASIC got about 85 complaints from former customers before it initialized the restraining order. So, if you are looking for a trading broker, avoid this one at all costs!
USGFX has huge problems and is a scam
Even if online trading has its ups and downs and involves a lot of risks, choosing USGFX as your trusted companion will multiply those issues. Firstly, this broker has a huge number of negative reviews both coming from professionals as well as from former customers. This means that most of their clients are losing large sums of money because of them.
Secondly, the irregularities done by EuropeFX were certainly performed under the eyes and license of USCFX. This means that the latter is no better and, most probably, it won’t take long before it is also shut down and its owners charged. Besides, their Taiwan business representatives have been accused of displaying fake Commonwealth Bank affiliations on the official website.
Last but not least, the company called iSignthis, which has facilitated the loss of more than $100 million for the banned OT Capital, has been proved to have connections with USGFX. Even if iSignthis denied all accusations, this shouldn’t make you trust any of them.
So, if you still have money deposited within USGFX, withdraw them as soon as possible, if you can! According to multiple sources, the broker does everything in its power to stop clients from getting their money. In case you want to choose a trustworthy online broker for your trading activities, DO NOT CHOOSE this one!
You have many other professional and safe options to pick from. Never trust your money, personal details, and bank information with these kinds of brokers. The aforementioned issues and, most importantly, the hostage situation, should be enough to convince you that USGFX should not be on your list of choices. We DO NOT RECOMMEND it by any means!