After 4XP Receives CySec Warning - Other EU Regulators to Follow?

Cypriot financial regulator, CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term, has issued a warning to investors about Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Place (4XP), stating that it isn’t permitted to offer financial services in the country, and has never been authorized by CySec. While not promoting itself as Cyprus-based, 4XP operates as an off-shore unregulated broker. Officially registered in the BVI, 4XP had a brief stint several years ago as a UK FSA regulated firm, before deciding to discontinue its licensing there (the firm is included in the FSA’s list of brokers receiving warnings from foreign regulators).

While not operating or promoting itself as a Cyprus-based broker, 4XP does accept clients in regulated jurisdictions. According to Forex Magnates' sources, the firm has been the target of customer complaints to numerous financial regulators where 4XP markets provide services to. In the beginning of 2013, sources voiced concern about account holdings following a period where the company experienced back office system failures. The same sources did update us that the issues had been resolved.

In addition to the unregulated 4XP, the broker shares a mutual service provider, Israel based Dealserv, with the CySec regulated SkyFX and ASIC licensed FXTG brands. (Update: SkyFX and FXTG have since been sold to new management in November '13, ending their connection to 4XP and Dealserv) Account holders and partners who have worked with 4XP have expressed to Forex Magnates that representatives from the firms have cross-marketed the brands. As such, the current CySec announcement may be in response to EU customer complaints about 4XP, as well as making it clear that the broker is unregulated as opposed to the SkyFX brand.