The Cyprus Securities and Exchange Commission (CySEC) has withdrawn Itrade Global’s operational licence. The company operated two forex and contracts for differences (CFDs) broker brands, TradedWell and InvestFW.
The licence withdrawal came amid “the company’s decision to expressly renounce it,” the regulator clarified in its notice published today (Friday), although the decision was made on 14 April.
Shut Down of CFDs Broker
Finance Magnates reported that the TradedWell website’s services were shuttered in January 2023, displaying a notice that it was “undergoing an operational optimisation process.” The services were shut down about two weeks after the broker stopped traders from opening new trading positions and halted new deposits.
TradedWell started operating in 2020 and offered commission-free services. The company provided its clients with market access to over 170 CFDs across a wide range of asset classes, such as forex, stocks, indices, cryptocurrencies, precious metals, and commodities.
Its sister brand, InvestFW, is also no longer offering services.
You may also like: 26 Degrees is surrendering its CySEC licence
A Controversial Brokerage Operator
Meanwhile, Itrade Global attracted controversy during its time offering FX and CFD trading services. In 2023, the Cypriot regulator issued a €1 million fine against the company for multiple violations committed by its tied agent in Spain.
According to the financial watchdog, Itrade Global, through the intermediary, failed to take appropriate measures to identify and prevent or manage conflicts of interest, did not act fairly, honestly, and professionally when providing investment services to clients, and did not ensure that all information addressed to clients was fair, clear, and not misleading, among other violations.
Cyprus has long been a top destination for CFDs brokers to establish their base to operate in the broader European markets. Many companies continue to open new operations on the Mediterranean island with the aim of entering Europe.
However, in recent years, CySEC has become stricter with any compliance lapses and has taken dozens of actions against brokers. Interestingly, Paphos Mayor Phedonas Phedonos recently alleged that some forex firms based in Cyprus are being used to launder drug money through complex shell company networks in Latin America. The allegations also prompted Cypriot authorities to highlight the limitations of their jurisdiction overseas.
The Cyprus Securities and Exchange Commission (CySEC) has withdrawn Itrade Global’s operational licence. The company operated two forex and contracts for differences (CFDs) broker brands, TradedWell and InvestFW.
The licence withdrawal came amid “the company’s decision to expressly renounce it,” the regulator clarified in its notice published today (Friday), although the decision was made on 14 April.
Shut Down of CFDs Broker
Finance Magnates reported that the TradedWell website’s services were shuttered in January 2023, displaying a notice that it was “undergoing an operational optimisation process.” The services were shut down about two weeks after the broker stopped traders from opening new trading positions and halted new deposits.
TradedWell started operating in 2020 and offered commission-free services. The company provided its clients with market access to over 170 CFDs across a wide range of asset classes, such as forex, stocks, indices, cryptocurrencies, precious metals, and commodities.
Its sister brand, InvestFW, is also no longer offering services.
You may also like: 26 Degrees is surrendering its CySEC licence
A Controversial Brokerage Operator
Meanwhile, Itrade Global attracted controversy during its time offering FX and CFD trading services. In 2023, the Cypriot regulator issued a €1 million fine against the company for multiple violations committed by its tied agent in Spain.
According to the financial watchdog, Itrade Global, through the intermediary, failed to take appropriate measures to identify and prevent or manage conflicts of interest, did not act fairly, honestly, and professionally when providing investment services to clients, and did not ensure that all information addressed to clients was fair, clear, and not misleading, among other violations.
Cyprus has long been a top destination for CFDs brokers to establish their base to operate in the broader European markets. Many companies continue to open new operations on the Mediterranean island with the aim of entering Europe.
However, in recent years, CySEC has become stricter with any compliance lapses and has taken dozens of actions against brokers. Interestingly, Paphos Mayor Phedonas Phedonos recently alleged that some forex firms based in Cyprus are being used to launder drug money through complex shell company networks in Latin America. The allegations also prompted Cypriot authorities to highlight the limitations of their jurisdiction overseas.
This post is originally published on FINANCEMAGNATES.
