Market News

CySEC suspends the license of AFX Capital Markets

Jul 19 2019
By Jonathan Smith

The Cyprus Securities and Exchange Commission (CySEC) announced that the license of AFX Capital Markets is temporarily suspended due to suspicions of non-compliance regarding the safeguard of clients’ funds.

In particular, the regulator stated that “there are suspicions of an alleged violation of section 22(1) of the Law due to the Company’s possible non-compliance at all times with the authorisation condition in section 17(9) (organizational requirements) of the Law, as specified in paragraphs 4, 6 and 9 of Directive DI87-01, regarding the safeguard of clients’ funds”.

The broker’s license is suspended for a period of ten days, within which the company has to take actions to comply with the legal provisions applicable to Cyprus Investment Firms. Until then, AFX Capital Markets is not allowed to carry out investment services or activities, accept new clients, nor advertise itself as a financial services provider.

CySEC may take more severe measures after the expiration of the 10-days period. Most often, if a broker does not act accordingly to the instructions given and continues to breach the law, the regulator prolongs the suspension, and withdraws the license permanently, where necessary. For example, the Cypriot financial watchdog withdrew the license of the parent of binary options broker AnyOption previous year.

Cypriot forex brokers are subjected to a number of regulatory rules, such as keeping clients’ funds in segregated accounts, report regularly to CySEC, holding at least €730 000 at all times, and more. This provides clients of Cypriot brokers with significant assurance for the security of their funds. Besides, they have to adhere to all requirements introduced on a EU level.

TAGS: AFX Capital Markets CySEC license suspension Cyprus

Broker	Advantages


	FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

	XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.
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	FBS is a broker with cool marketing and promotions. It runs an ongoing monthly $999 forex contest, offers a $5 no-deposit bonus for anyone willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.
	FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.
	HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage - one of the highest in the industry.
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Broker	Country	Regulation	Platform	Min Deposit	Review
	US	CFTC, NFA	MT4, Web, in-house	$50	Review Website
	US	NFA, CFTC	MT4	$250	Review Website
	Cyprus, UK, Mauritius	CySec, FCA, FSC	MT4, MT5, Web	$10	Review Website
	Australia	ASIC	MT4, MT5, IRESSTrader	$100	Review Website
	Cyprus, Australia	CySec, ASIC	MT4, MT5	$5	Review Website
	UK, Australia, South Africa	FCA, ASIC, FSCA	MT4, Trading Station, NinjaTrader	$50	Review Website
	UK, Cyprus, UAE, South Africa	FCA, CySEC, DFSA, FSB	MT4, MT5, FxPro Markets, cTrader	$100	Review Website
	Cyprus	CySEC	MT4, MT5, Web	$1	Review Website
	Belize	IFSC	MT4, MT5	$100	Review Website
	Cyprus, UK, South Africa, UAE	CySec, FCA, FSCA, DFSA	MT4, MT5, Web	$5	Review Website
	Cyprus, UK	CySEC, FCA	MT4, MT5	$1	Review Website
	UK	FCA	MT4, Web, MT4 for Mac	$100	Review Website
	Australia, UK	ASIC, FCA	MT4, MT5, cTrader	$200	Review Website

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