Unclear what the CySEC warning against TraderXP.
It is interesting comparing the warnings and fines issued by regulators such as the CFTC in the US, and CySEC in Cyprus. The CFTC is always very precise and detailed when it issues a warning, specifying what exactly happened (or is alleged to have happened). CySEC’s pronouncements, however, often leave a lot to be desired and leave the reader wondering what they really mean.
The latest example is CySEC’s new warning issued yesterday against binary options broker TraderXP. CySEC’s brief warning basically states that TraderXP is not licensed by CySEC, and is not authorised to act as a bank.
Again, it is unclear why CySEC issued the warning. Unless changes have just been made at the last minute, TraderXP’s website does not include any reference to Cyprus or CySEC. The company’s ‘Contact Us’ page refers to a Bulgarian phone number under ‘Global Headquarters’. And the fine print on the website points out that clearing services are done in Romania.
Perhaps TraderXP is incorporated in Cyprus. Perhaps they have established offices in Cyprus, or have been engaged in other activity there. (TraderXP’s LinkedIn page appears to state that they are based in Cyprus). If so, CySEC should state specifically what they believe TraderXP has been doing wrong, and why they issued the warning.
To see CySEC’s warning against TraderXP click here (pdf).