Speaking to Finance Magnates, the CEO of forex and CFDs brokerage LegacyFX, Mariano Obludzyner, confirmed that the brokerage’s operations have been suspended as of today. The company was established back in December 2015 with the support of Leverate’s shareholders.
The firm was to be operating independently from its technology provider and was to provide diversification of revenue streams for the owners of shares in both companies.
The shareholders of Leverate have reconsidered their decision to run an FX brokerage using the proprietary technology developed by the forex and CFDs trading technology firm after the unveiling of the project some months ago.
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While the firm would have been a great way to test the technology provider’s services on a smaller scale before launching to other clients, the conflicts of interest which could prospectively arise from the operations could have been the main reason behind the shutdown of the project.
In a saturated marketplace, Leverate has chosen to remain focused on its technology business, and remain committed to the firm’s existing clients.
A number of past occurrences in the industry could have gotten clients worried. Some technology providers for foreign exchange and binary options software have been rumored to be running their own brokerages, taking unfair advantage of the data of their clients. To date no such violations have been proven.