White Label Scams
The Great MetaQuotes/MetaFintech Scam
MT4/MT5 is the multi award winning trading platform software. Used across various markets, by various traders, brokers, funds etc. The software is a traders dream come true with its range of technical indicators prepacked into the various tooled windows.
For the users, MT4/5 is an analysts fairground. For licensed brokers MT4/5 presents access to the foreign exchange through your chosen broker, another outlet to reach the savvy analytical clients.
For an unlicensed broker, it’s gives them the exactly what they need to fraud unsuspecting victims such as rookie traders. Unlicensed brokers fear not, MetaFintech will put you in business and give you the legitimacy and credibility you need.
An unlicensed broker is a broker that operates unsupervised, away from any regulated body, this can be ok if you know the broker well enough, but it is not recommended because there is no one to help you in a regulated body when there is a dispute.
Why is being unsupervised preferable for the unlicensed broker?
Simply put, because they can do what they like to increase revenues. This includes trading spikes where by manipulating MT4 trading charts, traders lose trades due to deliberate manipulation of the trading charts by changing the currency value to fall or raise sharply enough for just a millisecond, this technique is a classic fraud technique where a broker will make sure traders stop losses are hit before the trades have reached the winning margin. White label brokers can also shut down their website and run off with the money at any point in time, as well as deploy extortionate taxes, believe me, during our investigation we have seen it all.
The unlicensed broker uses an intermediate software the acts as a manipulation tool to allow these illegal operators to manipulate spreads trading volatility indexes, even create whole trading charts themselves that can mimic the crypto market. The foreign exchange market is a currency market, but it can only offer crypto CFD trading, this is not the same as crypto currency trading which can only be done on the large exchanges.
Illegal brokers are offering bitcoin Ethereum and Litecoin as prime examples. Signals are then offered my broker “analysts” and agents usually are then sent out and paid well to find victims. Victims are always trade novices, rookies, who don’t have are less experiences in trading markets, regulations and have never even heard what a white label broker is. A Fake chart is easy to spot, if your broker fails regulation turns bad or is taken over by a criminal gang, it is likely they will implement a fake chart which is recognised the .h after the BTCUSD. This means that the chart is under the control of the broker and doesn't link to any exchange. If you see any trading products with a .h or a dot any any letter, do not trade with this broker simply withdraw your funds. alternatively you can send it to our team and we can investigate it for you.
Victims are taken to an official looking website, promises of licenced brokers and client money insurance, is enough to persuade the unsuspecting victim to register and even use their ID to really make users think it’s the real deal, but its all part of the scam. using GoDaddys CRM system, a website client database is then built onto support it.
Ruitong did offer proper trading currency pairs initially when there was the whiff of potential regulative licencing, these are the legitimate trading charts, but in mid Novmber 2021, the BTCUSD chart was replaced with this, when asked their new representative Wen Ting claimed the lot size had changed in the hundredths, hence the .h, but its a smoke and mirrors game as agents will direct clients to trade on their own fake charts that are easy to spot.
All payments are taken in Crypto or wire transfers. These are the two most difficult payment methods to track, but for new startups its also the most convenient. Victims don’t realise that it’s a manual process, the funds that are deposited to the MT4 accounts are actually fake. They can add as much as they like to these account because the account are offline and not attached to the Forex trading account management database.
Victims are slowly induced by the significant earnings offered by the crypto earnings. But the earnings aren’t real. But the agents keep encouraging users to put more into profit more. Agents are paid 200 USDT for each 1000 they introduce to the platform. Its difficult to know if all the agents are in the know, many are simply used and told very little as the agents are advised they are working for MT4 on behalf of the broker. This done because MT4 has credibility, and unsuspected agents think they are working for a legitimate company, agents then go into the world telling more victims that they are in fact working for MT4. This is far more satisfactory for the victim to swallow than working for some broker no one has ever heard of. The agent acts as both mentor and trader as they coax the victims to pay in more and more money into fake account that place fake trades on fake indexes, all curtesy of MetaQuotes/MetaFintech no background check is done when applying for a license, no audit nothing.
The white label broker may even payout the odd withdrawal, just to add a realism effect but sooner or later, the website will be closed, and the whitelabel broker will have got away with millions. In some cases an exit scam will be performed, when RT Trader went rogue, Went Ting, invented fake capital venture scams, where the victim has to raise their account to $10000, they will even lend the victim money and take over their account for a week and trade for them. After the week is over victims will be asked will be asked to pay taxes on their withdrawals or have their accounts frozen.
RT Trader / RT Alive then shut down 3000 user accounts. 3000 peoples lives now in debts they cant pay, savings they worked the whole life for gone, these criminals have MetaFintech to thank for their scamming success because legitimacy to the unsuspecting broker is everything, and having the MT4 software and showing Forex exchange access is exactly the trick they play on the unsuspecting traders of the world, in essence, MetaFintech aren just giving illegal brokers the gun, they are loading the weapon for them as well.
If the white labels don’t play their exit scam, they will just simply shut down the website as another entity will be already setup. Agents are then discarded or retained, the agents abhorrent that they were duped into working for a scam, will be sent packing, replaced with more useful idiots, in worse cases the agents will be threatened, to keep quiet or forced to continue working for them, depending on their proximity of course. Troublesome agents are offered higher salaries to keep quiet and continue working for them, HLT was offered favourable terms for client referrals, but after speaking to their clients and realising that regulative licensing was never going to take place with the change in "broker management", we passed you can't purchase integrity I told them, as I politely declined their partnership offer with a pleasant go f*"k yourself.
Meanwhile what does MetaFintech do. Well, they continue to say thank you to the whitelabels scam brokers and take their cut, like the Sicilian mobsters collecting the pizzo around Palermo shops and markets, MetaFintech will collect their $3000 a month and say thank you, after all, why should they care that 3000 victims have had their lives ruined, profits up bonuses all round in the MetaQuotes office building.
Of Course who are the victims? In my experience they are people that need it the most. These are the single parents, elderly, the infirm, who are trusting these whitelabels because they can prove trade access to the exchange using their MT4 licences. We have spoken so many many people who have been scammed, and many of them are not aware that MetaQuotes are power behind the throne of every illegal broker out there. Ask MetaQuotes for a response, like the true cowards they are, they wont respond.
But its ok, just use one of the MetaFintech customers access channels right? Wrong again. There are no email addresses that they will respond to. Their contact us page us just a collection of office addresses in countries with the most lax finance regulations. Hong Kong, Japan, Siwtzerland etc.
I cant even get a single employee on linkden to talk to us, while MetaFintech Meta quotes continue to ignore us. The solution is an easy one for MetaFintech, if they seriously wanted to stop the whitelabel scams, MetaFintech could employ a simple audit routine where each broker needed to be under a regulated body. Mt4 licence applications could be applied for by each broker needing to use their regulated licence number to obtain their MT4 licence, its very simple, but again, this option would deal a devastating blow to the metafintech profit margins. Share price might fall, my goodness, we wouldn’t want that would we. Don’t MetaFintech have a responsibility to take keep the markets safe from predatory brokers that are using their software to take money on false pretences, fraud. MetaFintech by turning a blind eye to their own whitelabel licence scheme they are supporting fraud that is costing victims millions and in some case their livelyhoods and their reputations. Ive had emails from people on the brink of suicide so who counts to the human cost for the invention of the whitelabel licence scheme? One thing is for sure Metafintech don’t. They cant even respond to an email.
The other question is where are the illicit funds ending up, who knows how many other illicit illegal enterprises this money is funding. Human trafficking? Illegal arms? Speculative maybe, but White Label licences are real, sponsored by MetaFintech whilst they turn a convenient blind eye, but the responsibility is theirs, and we need make MetaFintech accountable because these brokers that MetaFintech puts in business will disappear in within 8 to 10 months, leaving the victims with nowhere to go. How much longer can this be ignored? Why wont MetaFintech help us, or even talk to us?
Lets for a moment close our eyes and pretend we live in a world where MetaFintech don't give out their white label licences........ For starters, it takes away the only legitimacy that these illegal brokers have, already the vision is sweet, the 3000 RT Alive users that had their accounts locked would be significantly better off now and not had their lives ruined.
RT Alive is just one example, on WikIFX there are 100s if not 1000s of illegal brokers, but MetaFintech dont give a damn, as long as they get their piece right?
HLT Non-Profit Organisation has setup a charity for victims and to continue our campaign against Meta Fintech and to challenge this company in a legal framework.
Written by Gareth Hatton (CEO, Hatton Li Traders Ltd )