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 CAPITALIX as planned according to its regulatory address that 256 Archiepiskopou Makariou III, Charaki Court (Eftapaton) Flat D4, 3105, Limassol, Cyprus.

The investigators came to 256 Archiepiskopou Makariou III Avenue in Limassol, Cyprus for an on-site visit to the brokers office, and located the Charaki Court, a 7-story commercial building with a well-maintained facade, in the city center.

Upon arrival at the building for further investigation, the survey personnel spotted a directory in the lobby through glass door, which displayed that the 4th floor was occupied by FRS Shipmanagement Ltd, NBI Investment Ltd/Cambraro Holding Ltd, and Brokeree CY Ltd. However, it did not provide the information pertinent to CAPITALIX. People were not permitted to enter without an access card or an appointment. According to the website of these companies, there was no link between CAPITALIX and other companies mentioned.

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 CAPITALIX 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.