CySEC Warns Against Unlicensed Forex Brokers
22nd of January 2014
The Cyprus Securities and Exchange Commission warned against the company FC TRIDENT 365 LTD and its forex brokerage tridentFX. The Cypriot regulator revealed that the company in question is not licensed in Cyprus.
A lesser-known forex broker called TridentFX was just ousted by Cypriot regulators after the company in question apparently claimed that it operated under a CySEC license. Regulators in Cyprus have clarified that the company in question does not in fact have any valid license of any kind.
As such, CySEC recommends traders to avoid the forex broker at all costs. CySEC also revealed that the company in question is also not licensed and regulated in any other country either. Traders should therefore assume that in case they deposit money at the respective company they might end up losing all their money.
This event is yet another case in which Cyprus authorities seems to have stepped up the game and have gone after illegal financial trading service providers. In the past, CySEC was criticized that it did little to actually fight against illegal and shady brokers.
During the recent months, however, Cypriot authorities have began to crack down on fraudulent binary options as well as forex companies in order to prove to the international community that the licensed issued by CySEC can indeed be trusted.
Cyprus is at this moment one of the very few countries around the globe that offer binary options and forex licenses. Cypriot licenses are generally accepted in most other European countries as well, however incidents in the past in which CySEC did not intervene in cases of fraud have casted some doubt over the security offered by these licenses.
It’s expected that in the future CySEC would continue to improve its credibility and implement even stricter measures that would result in the shutdown of fraudulent financial service providers. However, this process is expected to be very slow.
At the same time several other countries intend to regulate binary options themselves. The next country to implement binary options laws and offer licenses to legit brokers will most likely be Malta.
Japan is yet another binary options and forex trading friendly country. Japan just recently implemented law that besides forex trading also legalized binary options. Other countries that will most likely follow are South Africa, Italy and the United Kingdom.
At the same time, both the global forex as well as binary options business continues to increase rapidly. The fastest growing one out of these two is binary options due to the relative novelty of the business.
As more and more countries decide to legalize these practices, the more popular they will become. Binary trading is at this moment still relatively marginalized however it’s expected to hot mainstream status sometimes during the very near future.