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 IUX Markets as planned according to its regulatory address that 16 Foti Kolakidi, 1st Floor, Office A, Agia Zoni, 3031, Limassol, Cyprus.

The investigators came to 16 Foti Kolakidi in Limassol, Cyprus to verify the broker‘s authenticity and operational status by paying an on-site visit to the broker’s office, and located a 4-story commercial building with a well-maintained facade.

Upon arrival at the building for further investigation, the survey personnel did not spot any company name or logo on the mailboxes nearby. And the company name “Ylatia Trading Co.” was displayed at the entrance of the building without a directory in the lobby.

Without security staff in the building, the inspection team reached the 1st floor, where there was one office that was occupied by “G. Tashev & Co LLC Associates & Legal Consultants.” Meanwhile, no company name or logo regarding IUX Markets was found.

After searching the IUX Markets address in Cyprus on its website, they concluded that the broker just registered at the place.

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 IUX Markets as scheduled, but did not find the company at its regulatory address. This denotes that it may just register at the address without a physical business office. Accordingly, investors should be meticulous in choosing the broker.

Disclaimer

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