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 LITE FOREX as planned according to its regulatory address that 124 Gladstonos Street, The Hawk Building, 4th Floor, CY 3031, Limassol, Cyprus.

The investigators came to 124 Gladstonos Street in Limassol, Cyprus for a visit to the brokers office, and located “The Hawk,” a 6-storey commercial building with a well maintained façade.

Upon arrival at the building for further investigation, the survey personnel spotted an outdoor floor directory, which displayed that the 4th floor was occupied by UMG, short for United Medical Group, instead of LITE FOREX.

In order to gain more information, the inspection team entered the building and discovered a directory, which showed “Ayan,” a different company name on the 4th floor compared to the one on the outdoor directory.

According to the official website of LITE FOREX, it is operated under Liteforex (Europe) LTD and there is no link between LITE FOREX and “Ayan.”

Then the team took the elevator to the 4th floor and saw United Medical Group. Through the open door, it could be seen that there were chairs, desks, and a sofa in the room, which did not resemble a trading office since no computer was spotted.

Through the on-site investigation, it is confirmed that LITE FOREX does not have a physical presence at the place.

Conclusion

The survey team went to Cyprus to visit broker LITE FOREX as scheduled, but did not find the companys office at its regulatory address. Accordingly, investors are advised to make a sensible 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.