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 ZARA FX as planned according to its regulatory address that 19 Aiolou & Panagioti Diomidous, Katholiki, 3020 Limassol, Cyprus.

The investigators came to Aiolou & Panagioti Diomidous in Limassol, Cyprus for a visit to the brokers office, but failed to locate No. 19 on the street. Upon further checking, they found that the actual registered address of the company was “No. 9 Aiolou & Panagioti Diomidous,” where “Williamson House,” a 2-stotrey building, was situated.

Additionally, there was no directory or email outside the building, which could indicate the existence of the broker. According to the local residents, the location was a residential district, where there was no company operating business.

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 ZARA FX as scheduled, but did not find the companys office at its regulatory address. Accordingly, it is suggested that 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.