Peter Karsten, a former sales consultant at the London Capital Group, has been appointed as CEO to a new forex and CFDs brokerage called IX Securities. The company is based in the Bahamas and is part of a growing number of new brokerage operations entered offshore.
The change was reflected on the LinkedIn profile of Karsten. The company states on its website that it is regulated by the Securities Commission of The Bahamas, and is registered in Nassau.
The new CEO of IX Securities has significant experience in the industry. Karsten was the CEO of BDSwiss between February 2014 and November 2015. He later joined Infinox Capital as Commercial Director and London Capital Group as a Sales Consultant.
Finance Magnates has reached out for comment to Karsten, but at the time of publication, he hasn’t responded.
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Offshore Payments Challenges
The biggest challenge offshore brokers are facing is payments. Currently, IX Securities is working with bank wires, 2pay4you, Western Union, Vload, Bitcoin, Fasapay and Perfect Money. The common thing about all of these payment methods is that clients can not do chargebacks.
The high-risk payments industry has been looking for solutions in the aftermath of the reclassification of forex and CFDs brokers transactions by VISA and MasterCard last year.
Brokers located offshore are deemed too risky to deal with even by unregulated payment institutions.
The rise of the popularity of offshore companies comes after the European Securities Markets Authority (ESMA) last year changed the leverage requirement for European clients. Since then, offshore brokers have been mushrooming in the Pacific and the Caribbean, aiming at EU-based clients who are looking to place highly-leveraged bets.