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 MAGNASALE as planned according to its regulatory address that 148 Strovolou Avenue, Petoussis House, 1st Floor, CY 2048, Nicosia, Cyprus.

The investigators came to 148 Strovolou Avenue in Nicosia, the capital of Cyprus, for a visit to the brokers office, and located Petoussis House, a 4-storey commercial structure, on the main street of the city. Additionally, the building is easily accessible via public transportation.

Upon arrival at the building, the survey personnel failed to enter, despite showing their intention of visit. According to the security guards on duty, people were not permitted to access the building without a valid access pass or invitation issued by an internal tenant. In addition, taking photos was prohibited in the building due to stringent security rules and privacy concerns.

However, the inspection team did not give up any chance to ask the staff working inside for help, and successfully invited one person to take some photos internally. Unfortunately, the team was told that there was no information regarding MAGNASALE 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 MAGNASALE 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.