Recently, due to an increase in complaints to the U.S. Commodity Futures Trading Commission (CFTC), many investors have entered gold traders via social media but have been unable to withdraw their funds or have been asked to pay additional fees. So an alert was issued to alert investors.

In the warning, the website published eight notes. These caveats also make sense for domestic investors.

OTC (Over The Counter) Chinese name: Over-the-counter trading, over-the-counter market, over-the-counter trading, refers to the transactions carried out outside the exchange market, which together with the exchange constitute a complete trading market system, for the securities are not traded in the centralized market by bidding, but in the business counter of securities firms by bargaining. The market formed by the counter trading is called the counter trading market and the store market. Stock exchanges have the benefit of facilitating liquidity, providing transparency and maintaining current market prices. In over-the-counter trading, prices are not necessarily published for the public.

1. The user trades with the trader. Unless an investor purchases foreign exchange futures or options on a regulated exchange, you are trading "over the counter" or over-the-counter (" OTC "). That is, we often say that betting, your profit is the dealer's loss.

2. Two-thirds of forex customers lose money. Taking into account all credit, financing charges and other expenses, most OTC forex clients are losing money. About one-third of the clients of registered OTC forex traders made a profit over the past year, while two-thirds lost money.

3. Traders control the trading platform. This is what we often call a fake platform, a platform disguised as legitimate software, manipulating background data to commit fraud.

4. The ability to close or offset a position is limited to your trader. Because you are transacting with the reseller on its platform, you are limited by the prices and conditions offered by the reseller.

5. Deposits are not protected. If the trader disappears or goes bankrupt, the investor may not be able to get your money back. Therefore, before opening an account, investors should ensure that they receive and carefully review the account agreement to understand what rights and protections they have. Don't pay extra money to get out.

6. You may lose all your margin and more. Margin is used in OTC forex trading. Traders need a minimum amount to open and maintain a position, which usually depends on the volatility of the currency pair you want to trade.

For example, a 2% margin requirement means you can open a $100,000 position with only $2,000 in your account. This high level of leverage amplifies both gains and losses. If the market moves against you, you will need to add more funds to your margin account or close your position. You may also be liable for additional losses beyond your initial deposit.

7. Unprofessional salespeople. Dealers may hire salespeople, social media influencers, or marketers to bring customers to their platforms, but salespeople may not have trading expertise. So there are huge irregularities.

8. Be active on social media. This type of scams usually happen on social media, dating apps, or unsolicited emails, and there are a few things to be aware of for these people:

Urge you to move the conversation to a private contact outside the platform.

The promise of an excess return in a short period of time, and a guaranteed return.

To direct you to an unlicensed dealer.

Provide more leverage than the law allows.

Only bitcoin, ethereum or other digital assets are accepted as payment methods.

The official website address does not have the actual company address, or the address does not exist, simply cannot be found.

There is no official customer service number.