CYSEC SUSPENDS ITRADER AND THREE MORE MAJOR FOREX SCAM COMPANIES
Following a request from the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission cracked down this Monday on four major forex companies.
- Hoch Capital Limited (Owner of ITrader)
- Rodeler Ltd (Owner of 24Option)
- Magnum FX Ltd (Owner of ETFINANCE)
- F1Markets Ltd. (Owner of Investous and StrattonMarkets)
CySEC Press Release
In their press release CySEC states the reasoning behind the suspension.
“The firms are suspected of not complying with honest, fair and professional rules governing the
provision of investment services; the duty to assess the appropriateness and compatibility of
financial instruments for clients, and the distribution of fair, clear and not misleading marketing
“Fake Celebrity Endorsements”
The press release goes on to state that these companies used “unauthorised and often fake celebrity endorsements on social media to entice customers to trade”
Clear mention of the FCA
“The FCA’s action means that the firms must cease all regulated
activities with UK consumers and are explicitly prohibited from providing investment services to
existing or new clients resident in the UK.”
Not a surprise
Both 24Option and Itrader have developed a name in the Forex community due to their nefarious business practices. Both Itrader and 24Option operated as Binary Options companies prior to binary options services being banned in most countries.
F1Markets LTD was suspended from practicing in the Uk back in 2016. Only now has the Cyprotic regulator followed suit leaving Forex victims asking why only now?
Dark Clouds Over CySEC
The question that remains to be answered is why it took so long for CySEC to deauthorize these firms. A long list of complaints has existed for multiple years regarding their deceitful practices. Why only now?
The only clear answer is that CySEC must own up to their reputation when it comes to other regulators. The fact that the recommendation to ban came from a fellow regulator makes the move all the more concerning. There are many critics of the FCA and their capabilities, however in terms of holding the financial insitutions under it’s watch accountable, the FCA is only surpassed by the SEC.
This makes them the much older brother to the Cyprus Securities and Exchange Commission. CySEC doesn’t report to the FCA in any official capacity, however the importance of the FCA’s approval and recognition of CySEC in a regulatory capacity is indisputable.
For more information visit CySEC’s website at https://www.cysec.gov.cy/home/.