What is COFCO Futures？
COFCO Futures, established in 1996, is a leading financial services company specializing in futures brokerage, investment advisory, asset management, and risk management. The company holds membership qualifications in three major Chinese futures exchanges (Shanghai, Dalian, and Zhengzhou), comprehensive clearing membership qualification in China Financial Futures Exchange, and director positions in Dalian Commodity Exchange and Zhengzhou Commodity Exchange. COFCO Futures has evolved over the years to provide a wide range of services, focusing on agricultural products as its core. They have developed a strong research capability and IT infrastructure to become a trusted partner for asset preservation and growth, contributing to industry development and serving real businesses.
Pros & Cons
Pros:
• Strong Shareholder Background: COFCO Futures benefits from a combination of industrial and financial capital, with COFCO Group's extensive experience in the agricultural sector and China Life Insurance as a major institutional investor.
• Robust Research Capabilities: The company's research spans various sectors, including macroeconomics, agriculture, chemicals, metals, construction materials, and energy, allowing them to offer informed investment advice and risk management services.
• Professional Service Team: COFCO Futures has built a professional service team over more than two decades, offering personalized information services and strategy solutions, enhancing customer experience.
• Established Risk Management Expertise: With extensive experience in risk management, COFCO Futures helps clients establish risk management and contingency plans, ensuring the safety of their funds.
Cons:
• Market Volatility: Futures and derivatives markets can be highly volatile, which poses risks to both the company and its clients.
• Restricted access in certain countries: COFCO Futures caters to limited international traders.Traders outside of China might not be able to access or use the platform, limiting its global reach.
Is COFCO Futures Safe or Scam？
User feedback: Peruse reviews and experiences shared by other customers to gain useful insights about brokerage. It's advisable to look at feedback presented on trustworthy websites and discussion forums.
Security measures: So far we cannot find any security measures info on Internet for this broker.
Ultimately, the choice to trade or not with COFCO Futures depends on you. It would be wise to thoroughly analyze the risks and benefits before coming to a conclusion.
As with any investment, there is always some level of risk involved, and it is important for traders to do their own research and carefully consider their options before investing.
Market Instruments
COFCO Futures boasts a comprehensive and diverse array of market instruments, catering to the varied needs of its global clientele. From traditional forex trading to commodities, the platform provides multiple avenues for potential investment. Here are some examples of the instruments available:
Currency Pairs Trading
The Forex segment at COFCO Futures features traditional instruments for this market, such as currency pairs. These pairs express the value of one currency in terms of another.
Precious Metals CFD Trading
Precious metals, notably gold, have consistently been viewed as reliable assets during market crises and periods of high volatility.
World Indices CFD Trading
Instruments in this category allow traders to engage with indices from leading stock exchanges. The pricing of these instruments is set in the local currency of each specific index.
Commodities
Trading commodities involves buying and selling raw materials or primary agricultural products such as oil, gold, wheat, or copper on various financial markets. Investors can speculate on the price movements of these commodities, either by trading physical goods or through derivative contracts like futures and options. Commodity trading can serve as a valuable diversification strategy within an investment portfolio and is influenced by factors such as supply and demand, geopolitical events, and economic indicators.
Accounts
To open an account with COFCO Futures, clients need to follow a two-step process.
For individual clients, they must prepare the required documents, including their ID card (front and back), a valid passport, a Hong Kong bank account proof with the customer's name and account number, and an address proof if it differs from the ID card address. Authorized individuals also need to provide their ID card (front and back).
For corporate clients, the necessary documents include business registration/tax registration documents, company registration/registration certificates, the company's articles of association, registration forms (NNC1 or the latest NAR1 for Hong Kong companies), a Certificate of Incumbency (for overseas companies, valid within six months), a company ownership structure chart, meeting records of the company's board of directors authorizing the account opening, and identity and address proofs for all directors and authorized individuals. They also require the company's annual financial audit report (for companies established for more than 18 months) and bank account proof with the company's name and account number.
The second step involves visiting COFCO Futures' office or licensed representative during business hours, bringing all the necessary documents to complete the account opening procedure.
COFCO Futures' office is located at 1701, COFCO Tower, 262 Gloucester Road, Causeway Bay, Hong Kong, and operates from 9 AM to 6 PM, Monday to Friday. This meticulous process ensures compliance with regulatory requirements and a smooth account opening experience for both individual and corporate clients.
Leverage
Futures contract leverage is equal to 1 divided by the margin ratio. Since the margin ratio is floating, the specific value of futures contract leverage is also floating; COFCO Futures (International) will update the margin standard in time.
Commissions
COFCO Futures' commission fees structure varies depending on the market and margin currency. For various markets, they charge different standard commission rates, with fees typically ranging from 10 to 60 units of the respective currency per transaction. These markets include major currencies like AUD, CAD, CHF, EURO, GBP, HKD, MYR, RMB, SGD, USD, and JPY. Additionally, for LME trading, the standard commission fee is set at USD 30. Keep in mind that specific trading circumstances and account types may result in variations in these fees, making it important for traders to consider their individual needs and strategies when assessing the cost of trading with COFCO Futures.
Deposits & Withdrawals
Deposit:
Clients can deposit funds into their trading margin account with COFCO Futures (International) Limited through various methods, including online banking, phone banking, or at a bank counter using the designated bank account specified in the contract. After completing the transfer, clients are required to email the bank slip or online banking transfer record to COFCO Futures (cofcoservice@cofco.com) or via WeChat (COFCOSERVICE01). The finance department processes these transactions from Monday to Friday, between 9:00 AM and 6:00 PM.
Withdrawal:
Clients can request withdrawals from COFCO Futures (International) Limited, and upon confirmation of sufficient funds, the requested amount will be transferred to the client's bank account under the same name as their trading account. Withdrawal requests received after 3:30 PM from Monday to Friday will be processed on the next working day.
Customer Service
Customers can visit their office or get in touch with customer service line using the information provided below:
Hotline: +86 400-706-0158 or 010-59137321
Email: zlqhbgs@cofco.com
Address: Room 5-15, 3th floor, CYTS Building, No.305 Dongzhimen South Street, Dongcheng District, Beijing, Room 313-4
Moreover, clients could get in touch with this broker through the social media, such as Wechat.
Conclusion
In conclusion, COFCO Futures stands as a prominent financial services provider in the commodities trading arena, offering a wide range of services to individual and corporate clients. With its strong shareholder background, robust research capabilities, professional service team, and emphasis on risk management, COFCO Futures has earned a reputation as a trusted partner in the financial industry. Their meticulous account opening process and transparent commission fee structure demonstrate a commitment to regulatory compliance and client satisfaction. As a dynamic player in the commodities market, COFCO Futures continues to contribute to the growth and diversification of investment opportunities while maintaining a focus on the safety and success of its clients' portfolios.
Frequently Asked Questions (FAQs)
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
In addition, the date on which this review was generated may also be an important factor to consider, as information may have changed since then. Therefore, readers are advised to always verify updated information directly with the company before making any decision or taking any action. Responsibility for the use of the information provided in this review rests solely with the reader.
