KROUFR Blacklists Northern-Cyprus Based TouchTrades

TouchTrades is the 28th broker to be added to the Russian watchdog's blacklist.

KROUFR, the Russian self-regulatory organisation aiming to regulate relationships between clients and retail brokerages, has blacklisted another forex broker, TouchTrades.

Finance Magnates last reported on a KROUFR warning in April after adding binary options broker, Interactive Option, to its warning list.

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Today’s move follows numerous complaints received from clients of TouchTrades relating to unscrupulous actions by the firm’s employees. Broker support was also red-flagged for ignoring a variety of issues related to the withdrawal of clients’ funds.

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Unrecognised Jurisdiction

TouchTrades, which operates online via the url www.touchtrades.com, offers a full suite of online brokerage, investing and related banking solutions. The firm claims to be regulated and a copy of its so-called licence can be seen on the website.

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However, investors should be aware that TouchTrades is based in Northern Cyprus (TRNC) and that due to the Cyprus dispute, the country is recognised only by the EU candidate state Turkey. Hence, the validity of this licence is highly questionable.

The Republic of Cyprus, an EU member state, is regarded as the only legitimate government for the whole island therefore any legally-registered brokerages operating from the island should possess a CySEC licence.

KROUFR Background

KROUFR is a non-profit organisation that seeks to identify unscrupulous companies operating in the financial markets and warn the trading community about the actions of these companies.

TouchTrades is the latest broker to have made it onto KROUFR’s blacklist of companies that exhibit characteristics of investment scams. The watchdog has advised investors to choose proven brokers with industry-recognised regulation and certification.

 

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