Cyprus Regulated Brokers Warning - ironFX

https://vimeo.com/156281942

If regulations have a tie with brokerages, regulation has no purpose to protect the investor

Unfortunately, this vid is unavailable

I just found it on YouTube:

Hello,

I want to point out a few things in the video:

- Although what happened with IronFX is truly shocking and completely wrong, one can say it is a one off (Its not like every broker on the island refuses client withdrawals and IB payments, otherwise Cyprus would become another questionable jurisdiction)

- Certain points in the video seem biased and exaggerated, and the person documenting the video certainly could cite several sources and information better, and has failed to mention the better points of CySEC.

- Again what happened with IronFX tainted the reputation of Cyprus as a regulatory jurisdiction but its unfair to tar all CySEC brokers with the same brush. There are well over a hundred brokers here in Cyprus and some are even the first players in the forex market, so one bad apple should not spoil the basket.

I work at a broker on the island and you would not believe the reporting, anti money laundering chekcs, stress tests, capital adequacy tests that must be done in every day to day operations of a broker.

Some points are agreeable in the video and I feel for the investors, but remember not ALL brokers are like that.

As Cypriot finance minister in 2013, Sarris was forced into a deal contingent on winding down a bank on an ELA lifeline. A second bank was forced to raid its clients deposits to recapitalize, a process known as a 'bail-in'.
- https://www.businessinsider.com/r-amid-fears-of-greek-controls-cyprus-shows-restrictions-are-bearable-2015-6

- https://www.rt.com/business/cyprus-bailout-withdrawal-banks-756/

The issue is beyond brokerages. Its the whole financial sector in Cyprus.

I suggest any Australians to report this scam to https://www.scamwatch.gov.au The more people who put in a report the more likely that ASIC will also take a look as they are licensed in Australia also. It only takes a couple of minutes.

nickchar,

You comment is absolutely irrelevant, because the message of the video is not to taint any other broker in Cyprus, BUT if you can hope any kind of protection from the local authorities in case of problems. The IronFx case depicts very well what to expect. Cysec fined IronFx with 335.000 (!) money that goes to the Cyprus state and left investors in the exact same place, or in fact even worse because now IronFx has 335000 Eur less capital to return client's funds.

Regulation in Cyprus simply doesn't exist.

@bladerunner ''Regulation in Cyprus simply doesn't exist.''

Now come on, you come forward with comments like that which are simply untrue and unsubstantiated. I would be very happy to pm you all the reporting standards and procedures a broker undertakes to the regulator, not to mention all the other regulatory bodies that are constantly liaising with CySEC to better streamline the regulatory aspects in trading, especially for the retail clients (Believe it or not higher protection is afforded to the retail client compared to the institutional one)

And what has all that meant to IronFx retail clients ? After more than one year of funds confiscated ? I'm interested in the result, not in the process.

By the way, what part of what I said is untrue and unsubstantiated ?? 😁

Thanks for movie and your thoughts, nice to know it

As my knowledge, Cysec has too many loopholes! Brokers with only Cysec as their regulator needs to watch out, do not trade with them!!!
Most of the reliable brokers (excluding USA) either have ASIC/FSP.
But as we know, all brokers have bad record regarding to fund withdrawal, but most of the time is because traders violated against the account type they open.

WilsonWang posted:
As my knowledge, Cysec has too many loopholes! Brokers with only Cysec as their regulator needs to watch out, do not trade with them!!!
Most of the reliable brokers (excluding USA) either have ASIC/FSP.
But as we know, all brokers have bad record regarding to fund withdrawal, but most of the time is because traders violated against the account type they open.

Rather serious thing... Can I know from which sources you know it? Thank you inadvance and would be nice to learn it

No matter how CySEC changed, I still personally prefere FCA or ASIC...

AziH posted:

WilsonWang posted:
As my knowledge, Cysec has too many loopholes! Brokers with only Cysec as their regulator needs to watch out, do not trade with them!!!
Most of the reliable brokers (excluding USA) either have ASIC/FSP.
But as we know, all brokers have bad record regarding to fund withdrawal, but most of the time is because traders violated against the account type they open.

Rather serious thing... Can I know from which sources you know it? Thank you inadvance and would be nice to learn it

Good day AziH
I'm working as a broker, so we have information regarding to which regulator is #1, #2, #3 and which is preferable in certain countries. Now personally speaking ASIC is in fact better than FCA, there was a time when FCA was better.
But soon FCA was taking money for license exchange, so if a broker is well funded, they can buy FCA license with money, not by meeting its requirements.
I misspoke about FSP, FSP is New Zealand regulator, only common in New Zealand & Australia.
I'm not able to advertise which broker I work at, sorry.

Thank you for

I don't think that CySEC necessarily deliberately tolerates scammers and shady brokers, at least not today. They suspended the license of Pegase Capitals only two weeks ago (https://smnweekly.com/2016/03/07/cyprus-cysec-suspends-forex-broker-pegase-capitals-cif-licence/), so it's possible they've learned their lesson. That said, with their track record, even if they've learned their lesson, it's probably better to put your trust in a regulator like the FCA, at least until they - CySEC - consistently show that they don't doperate that sort of thing.

mlawson71 posted:
I don't think that CySEC necessarily deliberately tolerates scammers and shady brokers, at least not today. They suspended the license of Pegase Capitals only two weeks ago (https://smnweekly.com/2016/03/07/cyprus-cysec-suspends-forex-broker-pegase-capitals-cif-licence/), so it's possible they've learned their lesson. That said, with their track record, even if they've learned their lesson, it's probably better to put your trust in a regulator like the FCA, at least until they - CySEC - consistently show that they don't doperate that sort of thing.

Yes, I agree, good sign. But still, it will take CySec some time to return back the reputation among traders I'm afraid.

WilsonWang posted:

AziH posted:

WilsonWang posted:
As my knowledge, Cysec has too many loopholes! Brokers with only Cysec as their regulator needs to watch out, do not trade with them!!!
Most of the reliable brokers (excluding USA) either have ASIC/FSP.
But as we know, all brokers have bad record regarding to fund withdrawal, but most of the time is because traders violated against the account type they open.

Rather serious thing... Can I know from which sources you know it? Thank you inadvance and would be nice to learn it

Good day AziH
I'm working as a broker, so we have information regarding to which regulator is #1, #2, #3 and which is preferable in certain countries. Now personally speaking ASIC is in fact better than FCA, there was a time when FCA was better.
But soon FCA was taking money for license exchange, so if a broker is well funded, they can buy FCA license with money, not by meeting its requirements.
I misspoke about FSP, FSP is New Zealand regulator, only common in New Zealand & Australia.
I'm not able to advertise which broker I work at, sorry.

Thank you for

I see, thanks a lot for your information. I understand you can't say about your broker, I just wanted make sure that you took that info from a credible info source. Thanks again

regulation has come to be very important issue in today Fx Markets