Forex Broker - IronFX

IronFX to Attract $100 Million Investment

It is being a very ordinary summer, huh? Not much volatility going on in the market. Hybernation for both market and forex industry is prevailing for the last few weeks. Thanks to IronFX, we have some significant news to talk about. And it is a good one for the industry.

IronFX, which is based in Cyprus and regulated by CySEC, ASIC and FCA, has announced that the firm managed to attract investment worth of $100 million from a wealthy Middle Eastern family (oil?). The payment is to be made in tranches and the first tranche is already delivered with remaining tranches to be delivered in next 12 months.

The Company aims to use the funds to acquire existing forex brands as well as for the process of developing new brands and services in the sector. I haven't made this up guys, this is what the official announcement says. So expect follow up headlines about acquisitions in the industy regarding IronFX. Perhaps something like this ''IronFX to Complete FXDD Acquisition'' ;).

This is the full announcement from IronFX about the $100 million investment deal:

IronFX (the “Company”) has successfully concluded an agreement with a prominent MENA region family office investor for a strategic investment of $100 million, which will be made in tranches to fund its growth capital needs.

IronFX is aiming to expand its markets of coverage and launch additional brands, as well as, acquire existing brands and books of business. The initial investment into the Company has already been completed.

The additional investment tranches are set to be completed during the course of the next twelve months and will be subject to regulatory approvals.


Lawsuit Against FXCM For Cancelling Trades

FXCM Sued for Cancelling Trades Worth $460.000

Finally a broker news worth to mention; a trader filed lawsuit against FXCM for cancelling transactions $460.000 in profit. I am very sure that every one of you has heard FXCM and probably some of you even has traded with them. It is one of the most well-known forex brokers in the world. However I have to say that FXCM had very difficult time to keep its head up in recent years.

After going bankrupt because of the SNB's disastrous and abrupt decision to remove EURCHF floor in early 2015, the company managed to find bail out funds to live through. Well, as if this is not troublesome enough, FXCM was barred from doing business in the US and fined $7 million by Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) early this year.

The reason for that was to misinform clients and public on the company's order execution model. FXCM long has been advertising that they used a No Dealing Desk model when, in fact NFA's findings point that FXCM was channeling clients' trades to a firm owned by FXCM itself.

Okay... so what now? Hang on guys. A trader from Bulgaria sued FXCM for cancelling trades worth up to $460.000 in profit. FXCM claims that the trader engaged in what it defined as 'abusive trading strategies' back in 2013. As far as I understand, FXCM asserts that the $460 grand profit from the trades were a result of technological glitches which they call 'manifest error'.

I am going to follow up this subject and update you on it. Meanwhile we better to learn this 'abusive trading strategies' thingy pals.


CySEC's Wrath on Senior Management of Falcon Brokers

Cyprus Securities and Exchange Commission (CySEC) has announced very serious financial penalties on high level executives of Falcon Brokers and banned important figures of the firm from doing business in financial sector for several years.

CySEC has been investigating Falcon Brokers for suspected misconduct for last one and half years and the financial penalties came as the result of this investigation. The firm's CySEC license got suspended by the watch dog on 24 Sept 2015. For those who don’t have background about Falcon Brokers, the firm used to provide online forex trading products.

Four individuals who hold senior management positions at the firm are fined by a sum of €195.00 and banned to do any kind of professional activity in financial sector up to five years. The measures are introduced following the investigation's findings which showed that those individuals failed to impose essential operational requirements to safeguard clients' funds.

Have you realized that forex companies located in Cyprus are more prone to commit misconduct relative to brokers regulated by watch dogs like FCA and ASiC? Perhaps it is time for CySEC to sit down and consider reviewing its rules to audit the firms and tightening the requirements for acquiring license. Get more serious and stricter, CySEC.


Turkey Bans To Open Forex Accont With Foreign Broker

Turkish Govt. to Ban Forex Trading With Foreign Brokers

Turkish government issued a decree on Official Gazette on Monday to ban Turkish cizitens to open forex account and trade forex with overseas brokers.

The country's watchdog CMB brought up new rules earlier this year for leveraged instrument trading to decrease maximum leverage to 10:1 from 100:1 and introducing a minimum account floor of 50.000 TL. Nevertheless it looks like it was not enough for the officials and they are tihgtening their grisp on the sector even further.

The new regulation left none but one choice for Turkish citizen and it was to open account with foreign forex brokers in order to be able to benefit from higher leverage.

However, government is now attempting to discourage those investors. Supposedly, the those ones who trade forex with a broker not regulated by CMB will be fined an amount between 27.000 and 338.000 TL. This is harsh guys...


FCA to Delay Implementation of New Trading Rules

UK's very well known and beloved financial watchdog FCA (Financial Conduct Authoritiy) has announced today that it delayed implementation of new trading rules on CFD products. FCA has been working on a package regarding new leverage and other operational rules for CFD trading in last several months which includes lowering leverage to 50:1.

Today's announcement states that the decision to delay follows the announcement made by the European Securities and Markets Authority (ESMA) on its consideration to review the leveraged sector.

From FCA's statement;

Given progress in ESMA’s own consideration of the use of its product intervention powers in this area, the FCA has decided to delay making final conduct rules for UK firms providing CFDs to retail clients, pending the outcome of ESMA’s discussions.

Therefore it looks like FCA is going to wait until ESMA comes with its own new trading rules and follow suit. The announcement says that ESMA’s product intervention powers can only come into effect from 3 January, 2018 at the earliest.


CySEC Cyprus Forex Regulator

CySEC Warns Against Buzztrade and Its Parent Company Airfine Pro Ltd.

Cypriot watchdog CySEC issued an important warning against Airfine Pro Ltd. The company was used to be regulated by CySEC until it renounced its license on November 2016. CySEC warns that Airfinance Pro has not yet informed that it has settled all its obligations. The company had to do it within three months following the rebuking of the license.

CySEC also warns that the websites www.investing-area.com, www.buzztrade.com, www.binaryroyal.com which are owned by Airfine Pro are still active and operational which should not be since the company lost its investment services authorization.

Binary options, binary options, binary options... They are the iffy and ugly back streets of the investment world. You should keep away from them especially if they are provided by shady firms.

Click for the full statement from CySEC about Airfine Pro and www.buzztrade.com.


CME: Forex Volume Up 4.0% MoM and 15.0% YoY in May

The world's largest derivatives market CME (The Chicago Mercantile Exchange), announced that its forex volume was up 4% in May 2017 compared to April 2017 and 15% up compared to May 2016. Also, its overall daily contract volume averaged at 16.5 million contracts which is 0.2 million higher than in April.

Some important highlights from the report

FX

  • Increased Japanese Yen futures and options ADV 35 percent to 157,000 contracts
  • Reached Euro FX futures and options ADV of 203,000 contracts, up 11 percent
  • Grew British Pound futures and options ADV 6 percent to 110,000 contracts
  • Increased ADV of Emerging Market currency pairs futures and options, with Indian Rupee up 222 percent, South African Rand up 144 percent, Russian Ruble up 133 percent and Brazilian Real up 16 percent

Metals

  • Grew Gold futures and options ADV 3 percent to 334,000 contracts
  • Increased Silver futures and options ADV 52 percent to 94,000 contracts
  • Achieved 17 percent year-over-year growth for base metals for the month, including Copper futures and options, which averaged more than 85,000 contracts per day, up 17 percent from May 2016

Energy

  • Grew WTI Crude Oil futures and options ADV 25 percent to 1.5 million contracts, including WTI Crude Oil options growth of 45 percent to 263,000 contracts
  • Increased Natural Gas futures and options ADV 26 percent to 587,000 contracts, with 32 percent growth in electronic Natural Gas futures and options ADV
  • Grew Refined Products futures and options ADV 5 percent to 393,000 contracts
  • Reached Gasoline futures ADV of 200,000 contracts
  • Achieved Henry Hub Natural Gas options ADV of 124,000 contracts, up 46 percent