Reason for this visit

Cyprus imprudently purchased Greek government bonds in 2012. When the Greek government bonds default occurred, the Cyprus banking system suffered heavy losses exceeding 30% of the annual GDP of Cyprus, and the countrys domestic debt crisis occurred. In response to the crisis, the Cyprus government introduced a terrible solution that was opposed by all the people, which aggravated the crisis. At the same time, some people in Cyprus discovered that having an upward trend in price, various foreign currencies that were independent of the sovereign currency might be able to cope with this crisis. As a result, people poured funds into the small foreign exchange market in an attempt to hedge and protect themselves. For various reasons, Cyprus has gradually become a country with active foreign exchange transactions. In an attempt to help investors better understand the current situation of foreign exchange brokers in Cyprus, WikiFX survey team decides to go to the country for on-site visits to local companies.

On-site visit

In this issue, the survey team went to Cyprus to visit forex broker GLOBAL CAPITAL as planned according to its regulatory address that 50 Archiepiskopou Makariou III Avenue, Alpha House, 1st Floor, CY 1065, Nicosia, Cyprus.

The investigators came to 50 Archiepiskopou Makariou III Avenue in Nicosia, the capital of Cyprus, for a visit to the brokers office, and located “Alpha House” in the city center. Additionally, there was a large array of entertainment facilities nearby, which appealed to a steady stream of people due to the prosperous area.

Upon arrival at the building for further investigation, the survey personnel learned that the whole building was occupied by CDB Bank, and did not spot the company name or logo of GLOBAL CAPITAL. In the meantime, people were not allowed to enter without an appointment, according to security guards. Following the inquiry about the existence of the company, the staff working in the building were not familiar with the specific situations of operational companies located at the address, except for CDB Bank. Therefore, it was not possible to determine whether the company existed.

Then the inspection team searched the website of GLOBAL CAPITAL and found that CDB Bank was the major shareholder of the broker, holding over 86% of the shares.

Through the on-site investigation, it is confirmed that the broker has a physical presence at the location.

Conclusion

The survey team went to Cyprus to visit broker GLOBAL CAPITAL as scheduled, and concluded that the broker has a physical business office at the place. Meanwhile, investors are advised to make an informed decision following much deliberation.

Disclaimer

The content is used for informational purpose only, and shall not be taken as a final order for making a choice.