Cyprus Regulator Revokes CFDs Broker Itrade Global’s Operational License
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The Cyprus Securities and Exchange Commission (CySEC) has announced the withdrawal of Itrade Global’s operational license. The regulator stated that the broker operated two Contracts for differences (CFDs) and forex brands: InvestFW and TradeWell.
The license withdrawal is coming when the company has decided to expressly renounce it, according to the clarification note from CySEC.
In January 2023, TradedWell’s brokerage services were shut down, displaying a notice that it was “undergoing an operational optimization process.” Two weeks before the services were shut down, the broker had already stopped traders from creating new accounts and prevented fresh deposits into its platform.
Some Forex Firms Are Allegedly Used To Launder Money And Drugs
The relaxation of regulations has made Cyprus a highly attractive destination for CFD brokers seeking a European base to operate from. Many firms have established offices in the region as a base to expand their businesses in Europe. However, CySEC has increased its regulatory duties and taken strict measures against brokers who fail to meet compliance requirements.
As more companies continue to establish new operational bases on the Mediterranean island, the watchdog states that it will maintain its strict regulatory duties to ensure a fair market for traders, investors, and all market participants.
Recently, allegations have been made linking some Cypriot-based forex and CFD firms to money laundering and drug trafficking via shell network firms in Latin America.
The Brokers Stopped Offering Services Before Their Licenses Were Revoked
TradeWell launched its brokerage business in 2020, when it started offering commission-free services. The broker provided trading access to clients for more than 170 CFDs across various asset classes, including commodities, precious metals, cryptocurrencies, indices, stocks, and forex.
Although it initially offered very few, the broker expanded its operations to cover a wide range of asset classes.
InvestfW, the broker’s sister brand, has also stopped offering its services to users. Itrade Global was at the centre of controversy when it was still offering CFD and FX trading services. In 2023, the firm was fined €1 million by the watchdog for several violations committed by its linked agent in Spain.
At the time, the regulator stated that the broker, via its intermediary, did not take appropriate steps to identify and manage conflicts of interest. The broker was also accused of failing to act professionally, fairly, and honestly when providing investment services to clients. The regulator reiterated that it failed to ensure that all the information passed to clients was not misleading, clear, and fair.
