The website home pages of several leading Cyprus FX and Binary brokers now lead with “Your Funds Are Safe” ads.
As the Cyprus bailout fiasco heads into its fourth day — and as Cyprus banks remain closed — the Cyprus-based FX and Binary brokers caught in the middle of all this have been scrambling to reassure customers that it is business-as-usual for them, with most if not all client funds held outside the country with Tier 1 banks.
We believe that the Cyprus FX scene will very soon shake out in a very ‘haves’ and ‘have-nots’ way — with those (usually larger, regulated) brokers holding client funds (as well as their own) outside the country escaping relatively unscathed, and those keeping client funds in the country — even with “Tier 1” global banks, but physically held in Cyprus — facing severe liquidity problems.
Both the ‘haves’ and ‘have-nots’ in Cyprus, however, will continue to face the “perception” problem that all Cyprus financial institutions are going to have going forward, which we wrote about yesterday.
Here are some of the website-wide ads we’ve seen the last couple of days on the websites of some leading Cyprus FX brokers, such as FxPro, Liquid Markets, ForexTime and IronFX. Will it help assure traders?
Stay tuned to LeapRate as this story continues to unfold…