AlfaTrade UK Seeking CySEC Regulation as Trading for EU Clients Halted
- The brokerage issued an announcement on its website that it has ceased to provide services in the EU due to its FCA license having being suspended
In what could be a fallout from the investigation by the U.K. Financial Conduct Authority of Plus500’s on-boarding procedure, a UK regulated 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 and CFDs brokerage has announced that it is suspending services to EU clients.
AlfaTrade has issued an announcement on its website explaining that its FCA license has been temporarily suspended. Sources with knowledge of the matter shared with Finance Magnates' reporters that the firm is looking to relocate its business to Cyprus and get regulated by the Cyprus Securities and Exchange Commission (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).
The company cites reasons for the move as “unforeseen circumstances”
The move could be related to an increased scrutiny by the FCA about account opening procedures. As of today, the license is still listed as active on the regulator's website, despite the suspension announcement on the website of the brokerage, thus leading to a conclusion that the license might have actually been suspended by the brokerage on a voluntary basis, although differing with the company’s official statement.
What the company cites as reason for the move are “unforeseen circumstances”.
AlfaTrade proceeds in its announcement stating that all client funds are still subject to the official regulatory requirements by the U.K. regulatory watchdog and are not at risk. Clients outside of the European Union remain unaffected by the trading suspension.
In what could be a fallout from the investigation by the U.K. Financial Conduct Authority of Plus500’s on-boarding procedure, a UK regulated 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 and CFDs brokerage has announced that it is suspending services to EU clients.
AlfaTrade has issued an announcement on its website explaining that its FCA license has been temporarily suspended. Sources with knowledge of the matter shared with Finance Magnates' reporters that the firm is looking to relocate its business to Cyprus and get regulated by the Cyprus Securities and Exchange Commission (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).
The company cites reasons for the move as “unforeseen circumstances”
The move could be related to an increased scrutiny by the FCA about account opening procedures. As of today, the license is still listed as active on the regulator's website, despite the suspension announcement on the website of the brokerage, thus leading to a conclusion that the license might have actually been suspended by the brokerage on a voluntary basis, although differing with the company’s official statement.
What the company cites as reason for the move are “unforeseen circumstances”.
AlfaTrade proceeds in its announcement stating that all client funds are still subject to the official regulatory requirements by the U.K. regulatory watchdog and are not at risk. Clients outside of the European Union remain unaffected by the trading suspension.