Forex Time (FXTM
), the Cyprus-based Forex broker that earlier this month celebrated is first anniversary, is already expanding: from August 26th, it has a representative office in London.
The new outlet is located at 33 Old Broad Street, London EC2M 1RX, so all of the UK clients of the company will be much closer to its services. Moreover, a business boosts its credibility thanks to a physical presence.
The London representative office belongs to ForexTime Ltd, which can be found in the register of the Financial Conduct Authority (FCA), the UK watchdog, under number 600475. The description in the registration states that the company is regulated by the Cyprus Securities and Exchange Commission (CySEC) and that the business may be subject to limited regulation by the FCA
In simple terms, FXTM has a license as a Cyprus Investment Firm (CIF) from its home regulator, but does not have a license from the UK watchdog. However, the lack of an FCA-license does not prevent the FX broker from operating in the UK and offering its services there. This is because the CySEC license (from December 13, 2012) allows it to operate anywhere in the UK, as long as it complies with the Markets in Financial Instruments Directive (MiFID). And if you still have any doubts about client fund safety, let me remind you that FXTM is a member of the the Investor Compensation Fund (ICF) which secures a cover of up to EUR 20,000 (USD 27,000) to customers.
London is an attractive destination for FX businesses seeking to expand: in July another Cypriot FX broker, Liquid Markets
, announced the opening of a branch in the UK capital. What's even more curious about FXTM's move, however, is whether the company aims to secure an FCA license. Moreover, the broker is talking about wider global expansion and I wonder what the next target would be. Given the latest regulatory chaos
in Cyprus, my guess would be that a new office would be launched outside of the European Union, probably in New Zealand.
Led by Mr Andrey Dashin, founder of Alpari, ForexTime Ltd is committed to providing the tools and support to ensure maximum performance for traders. ForexTime Ltd will offer trading and other investment services in Forex, commodities, precious metals, shares, indices and other financial instruments.