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Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management

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In the practice of two-way foreign exchange investment, Chinese citizens participating in foreign exchange transactions must first understand the legal boundaries of their actions; this is a crucial prerequisite for risk avoidance.

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Most foreign exchange investment transactions involving Chinese citizens are foreign exchange margin trading. Such transactions are not officially recognized in China and lack a mature and comprehensive regulatory body, placing them in a regulatory gray area. From a legal perspective, simply participating in foreign exchange margin trading does not constitute a violation of the law and will not incur criminal liability, as long as one does not act as an organizer, operator, or other core figure in the transaction. There is no need to worry about the risk of criminal prosecution.
According to relevant national laws and regulations, illegal activities in the foreign exchange field are clearly defined. Only those actions that bypass formal banking channels, privately buy and sell foreign exchange to profit from price differences, and disrupt the national foreign exchange management order will be considered illegal foreign exchange activities and subject to legal sanctions. It is particularly important to emphasize that while individual participation in forex trading is not illegal, such transactions are not protected by law. If losses occur during trading, or if one encounters fraudulent trading platforms or absconds with funds, all losses must be borne by the individual, and it is difficult to recover losses through legal channels.
The current forex industry is rife with unscrupulous platforms of varying quality. Selecting compliant platforms is crucial for individuals participating in forex trading. Some unscrupulous platforms often use highly attractive conditions such as "low commissions" or "zero commissions" to lure investors, but in reality, they conceal a significant risk of absconding with funds. These platforms lack the necessary operating qualifications, and their promised high returns are largely unrealistic. Investors must remain highly vigilant, proactively avoid such non-compliant platforms, and strengthen their own financial security.

In the two-way trading scenario of forex investment, Chinese citizens, as potential or actual forex traders, first need to deeply understand the underlying logic and practical considerations behind the government's foreign exchange control measures.

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From the perspective of the fit between market size and regulatory costs, China's massive population presents unique challenges to the regulation of foreign exchange investment. Even if policy adjustments bring foreign exchange trading into a legal regulatory framework, the limited trading volume is insufficient to support the smooth operation of the regulatory system. This assessment is not unfounded; actual operating data from the global foreign exchange market provides a glimpse into this—even the two top-tier foreign exchange brokers were acquired for only around $300 million each. This data fully demonstrates the limited profit margins in the overall foreign exchange trading sector and also suggests that market-driven trading revenue alone is unlikely to cover the operating costs of a dedicated regulatory system.
More importantly, against the backdrop of China's steadily increasing comprehensive national strength, the competitive landscape of the international community has undergone profound changes. Some countries, driven by concerns about containing China's development, are taking precautions and deliberately targeting China's development in related fields. In this macro context, if the full opening and development of the foreign exchange investment sector is hastily promoted, and Chinese investors achieve large-scale profits in the global foreign exchange market, major global countries are highly likely to use adjustments to foreign exchange trading rules to specifically curb this trend. This risk is highly certain. Such rule-based adjustments would not only directly harm the interests of Chinese investors but could also add additional obstacles to the internationalization of the RMB. From a strategic risk-averse perspective, temporarily slowing down the full opening of the foreign exchange investment sector could, to some extent, reduce international attention, decrease unnecessary targeted suppression, and create a relatively stable external environment for the advancement of core strategies such as RMB internationalization.

A trend, once formed, is not easily changed; this does not apply to the trading logic of current mainstream currency pairs.

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In the two-way trading mechanism of the foreign exchange market, investors are often guided by the widely circulated trading adage: "A trend, once formed, is not easily changed." However, this concept has shown significant limitations in contemporary foreign exchange investment practice, and it can even be said that it is not applicable to the trading logic of current mainstream currency pairs.
The reason for this lies in the fact that frequent intervention in the foreign exchange market by central banks around the world has become the norm—the core purpose of which is to prevent the formation of a sustained and clear trend in their currency exchange rates. This systemic policy intervention has kept major global currency pairs in a state of range-bound or consolidation for a long time, making it difficult to foster truly unilateral market movements.
In fact, as early as the beginning of the 21st century, a widespread consensus gradually formed in the market that "foreign exchange trends are dead." This judgment was not unfounded, but based on observations of profound changes in macroeconomic policies and market structures. The most symbolic event was the closure of the globally renowned foreign exchange hedge fund FX Concepts—this institution, once known for its trend-following strategies, ultimately withdrew from the market, seen as a landmark footnote to the "end of the trend trading era." Since then, few large foreign exchange funds with global macroeconomic trends as their core strategy have risen again, and no new institutions have been able to replicate their former glory in this field.
Today, the foreign exchange market is more of a collection of policy games, short-term fluctuations, and mean reversion, rather than a stage for trend traders to calmly position themselves. Therefore, investors who remain obsessed with capturing so-called "major trends" risk falling into a strategic predicament disconnected from reality. Only by adapting to structural market changes can they find a stable path amidst complex and volatile exchange rate fluctuations.

In the two-way trading scenario of foreign exchange investment, Chinese citizens, as foreign exchange investors, should resolutely avoid participating in the operation and practice of any foreign exchange-related industries.

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The core premise of this avoidance principle is that the practices of such industries themselves violate the requirements of current Chinese laws and regulations, and are generally subject to extremely high operational risks, lacking the foundation and guarantee for sustainable development.
From a legal perspective, China's relevant regulatory system explicitly prohibits the compliant operation of such foreign exchange-related industries. This policy orientation directly determines the non-legal nature and uncertainty of the industry's development. Meanwhile, due to legal prohibitions and industry limitations, very few forex traders are willing to venture into these related industries. The target customer base is already limited to forex investors, and this narrow customer base directly leads to persistently low revenue and profit levels for various businesses within the industry, often failing to cover basic operating expenses such as rent and labor costs. For forex traders, entering this industry is essentially a thankless task; not only does it fail to provide reasonable returns, but it also wastes valuable time and energy, causing them to miss out on more promising career opportunities—a pointless squandering of their youth.
More importantly, due to the industry's illegality and developmental limitations, the services offered by forex-related industries often fall short of basic standards of quality service, with some services even constituting commercial activities lacking real value. Such business practices, lacking core value support, cannot provide effective service guarantees for clients, nor can they form a healthy business cycle. Furthermore, their inherent legal boundaries amplify the legal and credit risks involved, making this a career choice that forex traders should absolutely not pursue.

In the context of two-way forex trading, the scale of gold trading is a key reference point for determining whether a platform carries the risk of counterparty trading.

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According to industry consensus, the average daily trading volume of gold is roughly between $100 billion and $200 billion. A thorough analysis of this data reveals the potential for some forex platforms to engage in counterparty trading. Especially when investors achieve substantial profits through trading strategies, if their orders are held in the platform's internal B-account system, the problem of fund redemption becomes extremely prominent. For platforms employing a counterparty trading model, such a large amount of profit often exceeds their actual redemption capacity, ultimately leading to the risk that investors cannot withdraw their profits normally.
It is necessary to further clarify that the liquidity of gold trading is not constant but exhibits significant periodic differences. During specific periods of peak liquidity, the circulation efficiency of gold trading can be comparable to that of major direct currency pairs like EUR/USD; however, over the entire year, the trading volume of gold is relatively limited for most of the time, roughly equivalent to the liquidity level of cross-currency pairs like EUR/GBP. For more accurate and authoritative data on gold trading volume, investors can consult official reports published by the World Gold Council. Such primary data sources provide a solid basis for investors' judgments, thereby enhancing the credibility of their understanding of the true state of the gold trading market.
It is worth noting that the gold trading market contains a core contradiction: on the one hand, there are a large number of investors participating in gold trading globally, with high market enthusiasm; on the other hand, the relatively limited liquidity supply for most periods makes it difficult to efficiently handle the massive trading demand. This supply-demand imbalance objectively creates ample room for forex platforms to engage in speculative trading. When large investors manage to reap substantial profits, platforms operating under this speculative model face immense pressure to repay their debts, often finding their actual financial strength insufficient to support such large-scale profit repayments. In this situation, delaying, evading, or even defaulting on payments becomes the simplest and most direct option for these platforms to avoid their repayment obligations, ultimately transferring the investment risk entirely to the investors.

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13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

z.x.n@139.com

Mr. Z-X-N

China · Guangzhou

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