CySEC claims that BDSwiss Holding Ltd redirected customers to other unregulated entities. CySEC charged €100,000 for the breach.
The Cyprus Securities and Exchange Commission (CySEC) recently announced the imposition of an administrative penalty of €100,000 on BDSwiss Holding Ltd, BDSwiss' forex brokerage and contracts for difference (CFD) operator. This regulator highlights that BDSwiss had redirected customers to an unregulated offshore entity.
CySEC explicitly reports that BDSwiss Holding Ltd enables offshore companies associated with it, using its status as a Cypriot Investment Firm (CIF), to attract clients to other brokers offering investment services in CFDs without initial margin protection and risk warning. As such, this broker avoids imposing the legal requirements of CIF regulators.
"BDSwiss Group plays on the fact that one of its companies is regulated in the UK to convey legitimacy to the group as a whole," said CySEC. We found 99% of BDSwiss consumers in the UK joined a group entity without concrete rules.
Based on the CySEC report, BDSwiss violated Article 42, paragraph 5 DI87-09 Regulation (EU) 600/2014. The €100,000 penalty was for BDSwiss violations related to the financial service offering that did not require payment of initial margin protection and risk warning according to its terms.
Also, This is not the first time BDSwiss has received customer alerts in its operations. In 2021, FCA UK disclosed that many UK clients were part of a group of regulators from different territories. In particular, foreign companies do not comply with FCA restrictions on marketing and selling CFDs to retail customers.
4 Comments
Apr 24 2023
FXOpen is a highly awarded broker, which not only gets great reviews from traders but also gets timely awards for its services from the largest financial institutions and organizations. Finally, our FXOpen Review found that the broker holds awards such as Best Forex Broker in Australasia, Best Islamic Forex Broker, Best Southeast Asia Forex Broker, Best ECN Forex Broker, and many more.
FXOpen is a securities broker. it is a broker that is regulated by top-level authorities such as the FCA and ASIC and is considered a low-risk broker for Forex and CFD trading. FXOpen is a legitimate and strictly regulated company. The broker holds the relevant authorizations in each region it operates. The FXOpen company operates in Australia, Saint Kitts and Nevis, the United Kingdom, and Cyprus and has representatives in a number of other countries.
As the FCA license is one of the most respected worldwide, traders have the assurance and peace of mind that funds are safe and secure at FXOpen, provided by means and transparent general guidelines on how the broker operates. In addition, client funds are held in completely segregated bank accounts in the UK and are protected up to £50,000 by the FSCS.
To start trading with FXOpen, first, you have to open an account and deposit funds. The process is simple and can be done completely online. Once your account has been approved, you can then make a deposit using one of the many methods available. Based on our research, we found that FXOpen offers an easy-to-use platform with all the tools and resources you need to trade successfully.
Apr 24 2023
OK, I know the FXOpen broker is a multi-licensed and regulated company that traders can trust for the safety of their funds. Your money is kept in segregated accounts only at level 1 regulated banks. You can fund or withdraw from your account instantly.
The novice and professional trading community admires this Australian broker for their extensive trading platform, including TickTrader, MT4, and MT5, and very competitive trading conditions.
But on the one hand, I am also interested in trading using copy trading services which are quite booming among traders lately. Copy trading is a service that can automatically copy trading positions that have been made by expert traders. the most profitable in my opinion is being able to increase profit potential because traders can imitate strategies that have been proven successful. Allows traders to follow more than one trader at a time, thereby increasing portfolio diversification.
In order to profit from this asset by copying trades, I need a broker providing this platform. I want to ask here whether FXOpen provides a copy trading platform. I'm quite curious about this. Please if anyone knows, help explain.
Apr 25 2023
Wow, you didn't know that the broker offers 2 popular copy trading platforms at once. As you know, ZuluTrade and Myfxbook are popular copy trading platforms among traders. of course, when a trader is interested in copy trading, traders often choose these 2 options.
only at Fx Open, I found a copy trading platform that offers this good, because rarely do brokers offer these 2 platforms at once. Why do I love copy trading? the only reason is I'd rather have a passive income through trading than have to get into trading myself.
Both provide good copy trading platforms and are often the choice for traders who enjoy copy trading. Previously, I was very impressed with the FXOpen broker that was able to provide these 2 platforms.
Did I prefer ZuluTrade in copy trading, why? because of Zulutrade's reputation as an independent and authoritative source of analysts, signals, effective strategies, account statistics, and trader contests.
All the advantages of ZuluTrade also apply to Autotrade tools. and the most important thing is that you can adjust the level of risk and the maximum number of lots opened by the signal and can close the current deal at any time and reject signals from certain providers.
Copy trading using ZuluTrade allows beginners to copy strategies from more experienced traders, as well as communicate with them. Another advantage is that ZuluTrade has an easy-to-use dashboard and application user interface. It's just that, some parties complained about the customer service provided.
Apr 25 2023
FXOpen is an excellent broker. It offers a wide variety of accounts, in-depth market coverage, competitive spreads, and a variety of high-quality platforms. Traders with moderate to advanced levels of experience will be delighted to work with FXOpen, which is one of the fastest-growing brokers in the industry.
Registering for an account with this broker is quite easy and simple. Go to the broker's website. You will first your country of residence to ensure that you are allowed to trade with FXOpen. If permitted, FXOpen will redirect you to its secure server, where you can complete the online verification and application. Upon completion of the application, you will receive a username, password, and access to the MyFXOpen client portal, where you can deposit funds and start trading.
The broker seems quite reliable and has even won awards for its high quality. In 2021, at the International Association of Forex Traders, FXOpen International won the title of "Best ECN Broker".