NordFX's relocation to St. Lucia amid regulatory changes raises trader concerns. Caution urged as client agreements shift to unregulated entity.
Forex broker NordFX has made a big change from Vanuatu to St. Lucia because of changing rules in these areas. This action raised worries by using a past-regulated company, NFX Capital VU Ltd. It is now working as a payment agent and was under the control of CySEC before.
This low-spread broker said that customer agreements are now with an unregulated offshore company and they don't promise the information on their platform is accurate. In the past, the zero-commission broker was run by NFX Capital CY Ltd in Europe and later changed to Inveza Capital Ltd.
The brokerage company has gone through changes in business identity across different places it operates. Despite a notable decline in website traffic, this metatrader-only broker is now based in St. Lucia, primarily serving the Asian market and offering a high leverage of up to 1: 1,000. But, the numbers that say they have like 2 million customers and 29,000 partners are being questioned for their truth.
This NordFX news is important because it will inform clients that they should be careful and check first before signing up with the broker. As this multi-asset broker changed where it works, and they don't take responsibility for whether the information is right or wrong.
At the same time, a group that checks finances and business in Cyprus called CySEC has gone against Inveza Capital Ltd. They ended their permission to operate because they didn't follow the rules properly.
This extra rule makes traders more careful. It shows how important it is to check everything properly in a changing money business industry quickly growing fast.