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 Limassol, the second largest city of Cyprus, to visit forex broker FXBFI as planned according to its regulatory address that 79 Spyrou Kyprianou Avenue, Mgo Protopapas Building, 1st Floor, CY 3076 Limassol, Cyprus.

The investigators came to 79 Spyrou Kyprianou Avenue in Limassol, Cyprus for a visit to the brokers office on April 19, 2024, and located a 4-storey commercial building with a well maintained façade on the main street in the city center.

Upon arrival at the building for further investigation, the survey personnel spotted clearly an outdoor directory, which did not display the company name or logo of FXBFI. And it could be seen that the 1st floor was occupied by company “MiTrade.”

In addition, the lobby directory did not show the information pertinent to broker FXBFI. In the meantime, the inspection team failed to discover the office of the company on the 1st floor. According to the security guards in the lobby, the broker did not exist in the building.

Through the on-site investigation, it is confirmed that the broker does not have a physical presence at the location.

Conclusion

The survey team went to Cyprus to visit broker FXBFI as scheduled, but did not find the companys name at its regulatory address. This denotes that it might register with the address without a physical business office at the place. Accordingly, investors should be meticulous in choosing the broker.

Disclaimer

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