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 BCM as planned according to its regulatory address that 182 Ayias Fylaxeos, Kofteros Business Center, Office 103, CY 3083, Limassol, Cyprus.

The investigators came to 182 Ayias Fylaxeos in Limassol, Cyprus for a visit to the broker‘s office, and located Kofteros Business Center, a 2-storey commercial building with a well-maintained façade. Additionally, there were some company logos on the facade of the building, but BCM’s was not included.

Upon arrival at the building for further investigation, the survey personnel spotted a directory in the lobby, which displayed that suite 103 on the 1st floor was occupied by “FURUNO” rather than “BCM.” After accessing the official website of BCM, there was no link between BCM and FURUNO. Then the team walked to suite 103, where FURUNO was located, without the name or logo of BCM.

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 BCM as scheduled, but did not find the company at its regulatory address. The broker might simply register at the address without a physical business office. Accordingly, 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.