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 NATION FX as planned according to its regulatory address that 1 Driadon, 1st Floor, Office 105, CY 6041, Larnaca, Cyprus.

The investigators came to 1 Driadon in Larnaca, Cyprus for a visit to the brokers office, and located a 4-storey commercial building with a well-maintained facade, in the city center.

Upon arrival at the building for further investigation, the survey personnel saw some retail stores on the ground floor. Furthermore, a directory by the lobby entrance displayed that the 1st floor was occupied by a business center and Simon Zenios & Co LLC, a legal & corporate services provider.

The inspection team then discovered the business center‘s directory on the 1st floor, which indicated that there were 7 offices in the center, among which office 105 was occupied by BNC. It was noteworthy that neither the building directory nor the business center directory indicated the company name NATION FX. According to the broker’s website, it did not provide the name of any other operating company. Thus, it seems reasonable to assume that the broker may just register at the address.

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

Conclusion

The survey team went to Cyprus to visit broker NATION FX as scheduled, but did not find the companys office at its regulatory address. 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.