Z Forex Paradox: Clients' Accounts Clear, Yet Profits Annulled Over 'KYC Violation'

Recently, clients have complained about the self-proclaimed ‘regulated’ Forex and CFD broker Z Forex.

Profits canceled due to ‘violation of Know Your Customer Rules’

Three clients who traded currency pairs on Z Forex's trading platform in October were not only prevented from withdrawing their funds, but even their profits were canceled. Why?

According to the statement provided by Z Forex customer service, the system detected that the three trading accounts were using the same device, and such behavior is not allowed by KYC rules.

_{Z Forex claims the violation of KYC.}

Therefore, the broker wiped out the profits of the three clients and rejected their withdrawal requests for the violation.

Interestingly, before the clients mentioned the profit cancellation and the blocked withdrawals, Z Forex checked the CIDs of their devices related to the accounts and confirmed the three were not using the same device.

_{Z Forex confirmed that the three clients were using different devices.}

Z Forex's contradictory statements made the client very upset. No excuses backed the cancellation of profit or the block of withdrawals.

Regulatory doubts

The licenses displayed on Z Forex's website indicate that it is a ‘regulated’ broker in St. Vincent and the Grenadines and Mwali. Are client funds really protected by regulation?

_{Z Forex is registered in the St Vincent and the Grenadines and Mwali.}

Upon verification, a company named Z Forex Capital Market LLC does exist on the Saint Vincent and the Grenadines Financial Services Authority (SVG FSA) registry. However, BrokersView repeatedly emphasizes to its users - SVG FSA is not a forex regulator and cannot provide regulatory protection for client funds.

To be sure, Z Forex is a brokerage firm supervised by the Mwali International Services Authority (MISA), but the MISA itself has been questioned by the local Central Bank.

The Central Bank of Comoros has called MISA a sham financial regulator with no authority to supervise offshore firms or license financial products and services to online trading platforms.

It has also been pointed out that MISA's license application process and fees are so lax and low that some illegal trading platforms often use the Authority to purchase licenses and claim to be legitimate entities.

_{The Central Bank of Comoros does not recognize the authorization of MISA.}

In the risky forex market, all earned profits do not come for nothing and the effort traders put into their investments should not be ignored.

Financial service providers have a responsibility to protect their clients' funds, instead of deducting profits or preventing clients from withdrawing their funds under apparently unreasonable pretexts.