Exclusive: Veteran Cyprus-Based Broker Faces Serious Financial Difficulties
- As the industry is still licking its wounds after some 2014 dire trading volumes, Forex Magnates has learned from several sources that a well-known CFD and forex broker based in Limassol suffers cash flows shortage
Several different sources have reported to 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 Magnates that one of the established Cyprus forex brokers is facing substantial financial difficulties. According to people familiar with the situation, the company is struggling in terms of financing, even in its most basic day-to-day operations.
Lower trading volumes following the record low FX volatility have been a cross-industry challenge throughout 2014, not escaping the major players. Publicly listed companies such as Plus500, FXCM and GAIN Capital have all suffered troubling declines, up until the recent volume reports.
Other brokers, especially smaller market makers, were forced to shut down or sell their operations to a better managed local competitor or a large global broker. Many other brokers keep struggling and some, mainly in loosely regulated jurisdictions, are even rumored to be tapping into client deposits in order to keep funding company operations. It seems that if current market conditions prevail, quite a few more may have to either undergo some sort of restructure or completely shut down.
Given difficult market conditions, M&A activity has recently increased: In the US, FXDD US-based accounts have been acquired by FXCM as was IBFX's MT4 business, and about a week ago inCyprus, JFX's business was officially merged into Traders Trust Capital Markets, with the firm renouncing its 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 authorization.
Forex Magnates will keep updating our readers as the situation develops.
Several different sources have reported to 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 Magnates that one of the established Cyprus forex brokers is facing substantial financial difficulties. According to people familiar with the situation, the company is struggling in terms of financing, even in its most basic day-to-day operations.
Lower trading volumes following the record low FX volatility have been a cross-industry challenge throughout 2014, not escaping the major players. Publicly listed companies such as Plus500, FXCM and GAIN Capital have all suffered troubling declines, up until the recent volume reports.
Other brokers, especially smaller market makers, were forced to shut down or sell their operations to a better managed local competitor or a large global broker. Many other brokers keep struggling and some, mainly in loosely regulated jurisdictions, are even rumored to be tapping into client deposits in order to keep funding company operations. It seems that if current market conditions prevail, quite a few more may have to either undergo some sort of restructure or completely shut down.
Given difficult market conditions, M&A activity has recently increased: In the US, FXDD US-based accounts have been acquired by FXCM as was IBFX's MT4 business, and about a week ago inCyprus, JFX's business was officially merged into Traders Trust Capital Markets, with the firm renouncing its 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 authorization.
Forex Magnates will keep updating our readers as the situation develops.