IronFX CEO Markos Kashiouris Discusses Recent Company Developments
As the allegations against IronFX by Chinese IBs reached the court in Cyprus, the firm's CEO Markos Kashiouris presented the
February has been a very tumultuous month for the foreign exchange industry. With the shock of the Swiss National Bank’s decision still rippling through, many brokers have suffered losses. According to the CEO of one of the major brokerages in Cyprus, IronFX, the firm remained unscathed by the event.
However, the company’s reputation has been recently tarnished by numerous reports in the Chinese media alleging improper business conduct by the firm, culminating in a number of clients storming IronFX’s offices in Shanghai. More recently, an official court filing alleges that the company is withholding withdrawals of client funds without providing a sufficient reason for its actions.
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Forex Magnates’ reporters contacted IronFX and asked the company’s CEO Markos A. Kashiouris questions about the recent market turmoil, the allegations brought forward by the Chinese IBs, the rumors about an ongoing restructuring in the Chinese and Cypriot offices of the company and the reports about an IronFX IPO.
How is the recent Swiss Franc debacle likely to affect the FX industry, and how do you see the market changing? Was IronFX affected?
Indeed, the SNB announcement on the 15th of January was an event-turning moment in the retail FX space. A lot of brokers, especially those running a full Agency/STP model, were seriously and negatively affected while at the same time clients sustained some loss of confidence, which however, we believe that it will be short-lived. Regarding the CHF move and SNB intervention, IronFX was not affected by the event.
The company certainly benefited from the fact that it is not an STP broker and has thorough and advanced risk management systems and procedures and trading technology in place that worked very well under the circumstances (e.g. stop-out triggers were properly activated). We have continued complying well with the company capital regulatory requirements under all regulatory bodies we have licenses with. Post the event, the company continues conducting business as usual.
What about negative balance issues, did you have clients who took advantage of negative balance protection?
Certainly a number of our clients did run into negative balances, but the portion of clients and balances was relatively small. The company has fully covered all negative balances arising from the SNB intervention, and we remain committed in continuing offering negative balance protection going forward.
The company’s Chinese operation is drawing a great deal of criticism in the local media. What is the reason for that? What is the current status of the offices of IronFX in China, are they operating?
In China, IronFX works via an extensive network of large Introducing Brokers, one of them being IGHG. We are not doing anything different from other companies in the industry in China and globally. All our affiliated Chinese IBs operations, including IGHG, are operational and refer clients to us normally.
Our fast growth and our dominance in recent years have naturally attracted criticism from competitions. It is not surprising that our success story and market growth challenges can trigger the interest of the industry and attract attention from various channels and third parties including media.
The important thing for us is that we remain focused and committed to our customers and the integrity of our business, while adjusting our business according to industry events and client needs.
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A claim by Chinese clients and IBs has been filed against the company in a Limassol court, demanding from IronFX more than a million dollars in claims. Is the claim related to the “abusive traders” who you have identified?
Indeed this claim is related to the recently identified group of abusive traders that employ an abusive trading strategy to manipulate our promotions. This group has been placed under investigation for breach of our trading terms and pending this investigation we have put a limitation on all promotions-related withdrawals from this abusive trading strategy as we are entitled to do. We will continue taking the measures to which we are entitled to protect the legitimate interests of the company and the over 500,000 clients who maintain active accounts in our company.
In our over five-year history, we never received a formal notification or fine from any of the eight regulatory authorities across the globe to which we report (CySEC, FCA, ASIC, DFSA, FSB, FSP, CRFIN, UCRFIN).
We have learned that as many as 200 employees were recently laid off from the company’s Chinese and Cypriot offices. Is this restructuring related to the SNB event or the recent Chinese media reports?
IronFX has one of the biggest operations in terms of number of direct offices (26) and number of direct aemployees (c. 800) worldwide, the majority of whom are account managers. This is a normal cycle of talent refreshment and structural reorganization. Any company of such size and high growth naturally needs to adjust every so often to optimize operations. It has been some time since we reviewed a reorganization to optimize our operations and align them with our overall strategic growth plans.
Post the SNB event, we decided that it was a good time to do so. Some positions and roles were deemed obsolete whilst others were deemed more necessary. Our strength has always been on the local approach and personalized service of our account management force globally, which we are dedicated to keep investing in. As a result, we continue actively looking to hire higher performance and more experienced account managers to enhance the worldwide fabric of our operations.
What is the added value of having multiple offices worldwide? What is your next strategic target of expansion?
“Global reach with local presence” is part of the company’s overall strategy. Physical offices appeal to our clients (introducing brokers and end clients) and they represent added value customer service for them. Our established unique customer-focused model based on local offices and complemented by our account manager model, under which every client is provided a dedicated native AM, has been the key driver of our success.
The combination of both allows the company to meet with clients on the ground, build long-term and trusted relationships as well as gain expertise in the local market.
We will continue this strategy to further penetrate our current local markets and expand into new geographical locations where we expect FX business is likely to grow. Irrespective of the events of January 15, we are optimistic for the future of the sector and IronFX’s place in it as one the leading global and trusted retail FX brokers.
In December a report by the Wall Street Journal suggested that IronFX has filed for an IPO in the US. Was this report accurate, and if so why did you choose an arena in which you have no offices or clients?
Whilst we cannot confirm the WSJ report that IronFX has filed for an IPO in the US, we can confirm that post-SNB the competitive landscape has changed decidedly in our favor. The company is actively evaluating a number of capital markets opportunities with a number of interested parties that recognize the strength of the global financial distribution platform we alone offer and are willing to partner with us to potentially capitalize on these opportunities and consolidate our no.1 position in retail FX.
What a joke! When those client lose money , they don't have an issue , when client win, it's abusive manipulation. The credit bonus of iron fx in China has been running for almost two years and a few statements like this expecting audience to believe iron fx is not aware of the credit bonus arbitraging ?
Come on girls, start commenting. Target for this to pass 100 comments for a new FM record.
Show you panic and start writing.
Mr. Kashiouris, Here we go again… I will just leave this here for you to consider: IGHG is registered in Shanghai under the address of IronFX Shanghai office. (Screenshot if you decide to change the address on your website – http://oi59.tinypic.com/2m61fn4.jpg) Then, according to the information freely available to public from the Shanghai’s Company Registrar, the company belongs to a company called Terra Management Ltd, registered in Hong Kong. The directors of the company IGHG are Mr. Petros Economides (Shareholder of IronFX) and Mr. Markos Kashiouris, (CEO and shareholder of IronFX). The Supervisor of the company is Mr. Demetris Kyriacou,… Read more »
What a leader!!!!
Competitors around the world lets join forces and break all comment records
Honestly, I’m uncomfortable about the violent turn of events in china. wouldnt an honest IB find an honest way to sort to a dispute with his broker?
1. Before I started working for IronFX, we undergo trainings where we were brainwashed on how to convince client that IronFX offers STP accounts but we were also taught to convince these innocent clients NOT to fund the STP account but dealing desk accounts to get bonuses, now after SNB the CEO is telling us all that IronFX is not STP. 2. Average deposits per day in China is close to $5 million dollars and these comes from these IBs whose rebate are been refused to be paid and Markos is lying that they are abusers, in IronFX, once you… Read more »
The problems with withdrawals is faced not only by Chinese IBs and clients but also IronFX European clients. Most of the withdrawals from January are still not wired to clients. Why FM didn’t ask a question about this?
I guess that IronFX took a big hit with SNB move and they are hiding the impact with accounting games. By processing withdrawals from clients’ trading accounts they lower liabilities to clients and by not wiring the actual money they could be artificially showing better liquidity position.
is it true that all other brokers operate the same way in china? anybody know about this?
no big ones would say they have offices for Sales in China in public, the offices are normally Marketing, Training center or from IBs or Affiliates. such behavior from the “honest” IBs is very common, many brokers experienced something similar or if they don’t have an office “honest” IBs will come to destroy the booth in expo.
An abuser opens an account with Ironfx and another account with another broker. He rceives a bonus from both brokers. He buys on one account and sells on the other account. If the client makes money with Ironfx and loses with the other broker, then Ironfx looks at his trading style, and if they see he went full margin, one big position, they label him as an abuser and do not give him his money. They are FREE to do so, AS LONG AS, they do the same if you lose with them, i.e. they give you back your loss,… Read more »
Funny that there was no mention of restructuring in their UK offices, and Mr Mitsi who seems to be the new fall guy. I heard that there’s a video of him doing the harlem shake somewhere. Anyone happen to have a link to that?
Well, at this stage it seems to be IronFX’s word against the Chinese clients who complained. I’d like to see how exactly those promotions that have allegedly been abused look like. One way or the other, it shouldn’t be so hard to prove in court.
500,000 clients? Lol…what a complete load of bull you mea demo accounts? Not even. “Consolidate” no.1 position in retail fx? Lol…you’re not even close…this interview is a joke because the CEO is an embarrassment by making statements like that. How r u supposed to believe a word he says. A total PR spin exercise.
I’ve been told from the sales people at the London office that Iron Fx is withholding $100m in withdrawal requests from clients that opened with the London office. It’s an embarrassment this bucket shop is still in the biz. I got my money out after 3 weeks of calling everyday. 3weeks!!!! My final resort was a complaint to the FCA. Consumer.Queries@fca.org.uk.
This interview is a joke that shows the lack of respect of IronFX leaders within the industry and its clients. Broker present itself as STP with a huge liquidity pool, now CEO publicly changes his mind and say that its all market maker trading against the customers. SNB has not impacted IronFX? Of course not, and what kind of question is this? This is a market maker company probably hedging less than 10% of the clients trades in the market to cover themselves, meaning that any gap in the market will only affect their clients and not themselves. UK Branch… Read more »
Any PR is good PR – doesnt work in their case any more…
Critically thinking – IronFX is dying, painfully. Which is bad for everyone.
Since there is a Court case, why don’t we let the Court and the Regulators decide? Chinese abuse of promotions is well-documented (FXTM had office trouble too, can’t be bothered to copy the link as some of the overzealous commentators on this Forum but has been reported by FM, Gain Capital was kicked out altogether from China c. 2007). Assuming CySEC turns a blind eye, IronFX has full licences with FCA and ASIC. Are these regulators turning a blind eye on the “delays”? Also as per earlier commentator, if anyone that has issue believes they have a case, why they… Read more »
The truth is yet to come.
http://www.waihuiweiquanwang.com/
Use google translate on google chrome.
Clock is ticking.
Tick, tack. Tick, tack.
seems like they havent read new conditions for bonus since February 19. If IronFX suspects or has reason to believe that a Client has abused the terms and conditions of this Offer by hedging his positions including, without limitation, holding open position(s) on one side direction, including, by way of illustration only, single or correlated currencies, at given periods, internally (using other trading accounts held with IronFX) or externally (using other trading accounts held with other brokers), IronFX reserves the right, without the Client’s consent, to withdraw immediately the Power Bonus (and the Additional Bonus if applicable) from the Client’s… Read more »
JUST REMINDING if people need to take action please see this link for a guide on how to. http://www.forexpeacearmy.com/forex-forum/scam-alerts-folder/38764-having-trouble-ironfx-follow-below-steps.html?highlight=ironfx there are also many threads over the internet of these issues the fca uk is the easiest place to make a complaint even if you opened an account in cyprus or australia ect as you can give them a call on +44 20 7964 1000 and report the complaint against ironfx Registration Number: 585561. it only takes 5 minutes and they send a complaint off to ironfx the next day on your behalf. also the more complaints the quicker the fca… Read more »
https://www.superfinanciera.gov.co/descargas%3Fcom%3Dinstitucional%26name%3DpubFile1005340%26downloadname%3Dcc124_13.doc+&cd=6&hl=en&ct=clnk&gl=cy
http://forexmagnates.com/exclusive-ironfx-accused-of-unauthorized-activity-in-colombia-operations-suspended/
http://www.dinero.com/inversionistas/articulo/firma-chipre-operaba-autorizacion/192754
Of course IronFx has already been fined by regulators! Check links above, also they operate in different markets without any local regulation at this moment.
Very nice!!!
“500,000 active client accounts”
Does IronFX think everyone is stupid?
IronFX is a complete joke. and the rest of the brokers who are trying to target China should really HELP SPREAD THE NEWS IN THE NON-CIHNESE MARKET. IronFX has already lost, if not completely lost, the Chinese market. (Markos might buy another company to start over there), so IronFX does not really give a damn about the Chinese complaint. Come on guys, it’s Cyprus, where you buy a house with NO clean title deed. Like it or not, IronFX is representing CySEC brokers. The truth is, IronFX withdrawal problem is already hurting the Chinese trader’s confidence with CySEC. IronFX’s decrease… Read more »
Girls
No fines and no regulatory investigations. Read your notes well before you panic.
Keep pasting links from unaccountable gossip websites. Would rather prefer to see a LINK FROM A REGULATOR TO BELIEVE YOU.
Have a good weekend, girls.
Thank you.
It’s easy to jump on the negativity bandwagon. Iron FX is getting a lot of stick and it seems that people have a great deal to say without actually knowing the facts. Speculation doesn’t get you anywhere.
My observation – I am surprised Iron FX allowed their clients to abuse the welcome bonuses for so long….and NOW they are bitter that they benefited from years of “free” money???!
I’ve been an Iron FX UK client for just over a year and recently met Mr Stefanos Mitsi….and you know what….GOOD GUY NOT THE FALL GUY! He’s obviously ruffled a few feathers…
The CEO is telling lies. Not only China, European clients are unable to withdraw money, now a lot of Vietnamese clients are also in the same situations. The withdrawals have been done and the amounts have been deducted from MT4 accounts and processed. After 4 weeks of chasing why money not back, we got the email saying that the acount is under investigation and all the money are returned back to MT4 accounts. Look likes you can only deposit, lost their and use their credit money winning from other brokers. You cannot withdraw anything…. boycots those bastards please!
Every day passing with their office open is 1 more day of CySEC loosing its credibility and therefore creating problems to all of us which are seeking work or are currently working or in the FX industry on this island. As I have noted in numerous posts the fact that they will close down is a FACT. Given the fact that this Interview must be the biggest fiasco in FX history it seems all the fake supporters in the previous post of Forex Magnates are nowhere to be seen. It might just be that with all this bunch of bull_cks… Read more »
This bucketshop reflects so badly on Cysec and the FCA……..a Ponzi scheme ?? Quite probably, but whatever it is, it will all end in tears…….
My friends…
Any IPO will be based on real factual DD, no gossip. So stop wasting your time writing unfounded lies.
Leave your “detective’ work for people that have brain to assess information and take decisions. Enjoy your weekend instead.
Immediately I learnt IronFX sacked the young man they brainwashed to get them established and recognized in my country, that was when I knew something is wrong somewhere, they even went ahead and told their clients so many lies about the innocent man whom they changed his initial agreement with them few days before operation resumes and forced him to accept the offer of Sales Manager. Now the Bigger boys in UK are been hit as well and over 500 employees sacked within 3months. We are watching and the popular saying in my country goes "there is God ooo". The… Read more »
@Bolaji
Actually, as we heard the actual number of sackings is 100,000. This includes about 99,000 in secret call centers in India.
Get a life and give FACTS please.
@ Mark Acker hi there. i think i remember your name from the live chat although i may be mistaken. do you have more information on the 50 sacked from the uk. i have tried some numbers on the website such as 44 (0) 207 623 0800 on friday multiple times but got no answer. also the number on the fca website which ususally directed to their reception/admin also had no answer. one account manager who i got the details of dau ly apparently left a while ago his contact details were t +44 (0) 207 623 0838 | m… Read more »
@ Jack Colan, i have every right to air my view, over 70% the pioneer Account Managers and the Sales Manager that started IronFX office in my country no longer works with the company either been SACKED or FORCEFUL resignation and these ex-employees are spread across other brokers presently.
I’ve actually heard they fired 80,000 and left 20,000 for this week so they don’t lose momentum. Also sources say that big part of the Greek debt is attributed to ironfx. In particular, the Greek government deposited 100 -150 billion with ironfx which they cannot withdraw now. Varoufakis made the complaint to Cysec so they might not need a bailout eventually. I’ ve also heard they are hiring Mark Acker as an economic advisor after seeing how well they handled the SNB intervention at Fxpro with only 40 million loss. Also because he wants to get a life as he… Read more »
hahaha))
What an arrogant joker!!
He came in 2010 to to copy everybody else and now claims that he is unique….
“Our established unique customer-focused model based on local offices and complemented by our account manager model, under which every client is provided a dedicated native AM, has been the key driver of our success. ”
You know very well that there are plenty of players that have been running the above since the year 2000! So much for originality.
@MollyMalone
great post.
I wonder where exactly is Cysec? There is plenty of information in the above comments to start investigation on IronFX and to make sure that clients would get their money back.
CYSEC, wake up!
@blankstein
Your not Jewish so enough already with the jewish surnames and as far as girls hiding is concerned lead with example.
Your using a jewish surname and u did it again on the previous post of ironfx with another jewish surname.
You know what I mean big Mak!
Have a nice week!
Tick, tock, tick, tock!
@Mark Blankstein
Please tell me, why is IronFX Compliance Department mot responding to complaints anymore? It is for 15 days already!
Can we please have some links from Regulators as to the above claims? We hear a lot of things but nothing really with an official backup.
@Mark Acker
Buddy – as you know Israel is a small place and things go around quickly when it comes to making money.
So we suggest you go back in trying to make money (in vain) at your FX Company and leave the Regulators (and the Investment Bankers) to deal with matters that you cannot comprehend and resort in writing amateur lies.
I think is important cysec to look into ironFX …in the case for chinese eas… i guess it would be difficult to prove misuse and in any case initial investment should be returned
I don t get this last thing about leaving investment bankers deals with matters… neither why they are written in capitals
@metsys
The people that need to do real DD (Investment Bankers) have done so and do no resort to reading competitor-driven gossip.
So save your energy unless you have something factual from an official source.
antonio, what are your official sources? i think as a trader it is important that issues are correctly addressed..i don t have anyth against ironfx(never tried their platform)..good for them if they make money..and please these investment banker stuff leave it aside
Dear IronFX CEO Markos Kashiouris,
Before interviewing(freak) pay us our money..
@metsys
Since you don’t understand what I am talking about, I will not elaborate further.
Any additional claims from everyone to be supported by facts because IronFX is one of the most due-diligenced companies in the sector. In the absence of any hard regulatory facts, I would kindly suggest that people refrain from making baseless accusations akin to competitor-driven malice.
@Antonio Weiss (Banderas)
Nice one mate!!! “IronFX is one of the most due-diligent companies in the sector” LOL. You are fast asleep my dear friend or your employer is brainwashing you. Read Mark Acker post above and ask around!!!!
There are interesting views in this post, I have worked as an Affiliate with Iron forthe last 4 months. The first month I did not receive any commission but brought 17 leads, which 1 of them deposited. Second month my site brought 26 leads and two deposits, on my portal it showed $7,000 and $1540 deposits, again that month I did not have any commission. I picked up the phone and called them, they told that their qualification is based on lead+deposit+volume. The third month, I brought 12 new subscriptions with no deposit, but I got paid $1,000 as two… Read more »
@ jacob M we are just normal people, we trade, we earn, we loss, but the thing is, if any 1 doing this so called ABUSIVE TRADING, IRON should intimate them, & do as the procedure says… but when WE (the NORMAL PEOPLE) earns, y do they r not fulfilling our WD request. & the worst thing is …. they dont have any proper reply, somebody says UR ACC IS OK, Somebody tells, U LL HAVE UR WD BY THIS WEEK, & then Suddenly in a day or so … THEY MAILED ….. UR ACC IS UNDER INVESTIGATION …. still… Read more »