NordFX has recently undergone a significant relocation from Vanuatu to St. Lucia, citing regulatory changes in the respective jurisdictions as the driving force behind the move. The decision has prompted apprehension among traders, as client agreements have shifted to entities operating in an unregulated offshore environment.
Previously regulated under CySEC, NFX Capital VU Ltd, the former parent company, is now functioning as a payment agent. The broker, known for its low spreads, shared with clients that its platform’s information may no longer be guaranteed for accuracy as the transition involves dealings with an unregulated offshore entity.
NordFX Relocation Sparks Trader Caution Amid Regulatory Changes
NordFX has undergone several changes in its corporate identity, transitioning from NFX Capital CY Ltd in Europe to Inveza Capital Ltd. The broker, which operates exclusively on the MetaTrader platform, has experienced a notable decline in website traffic but remains headquartered in St. Lucia, primarily focusing on serving the Asian market. Moreover, it continues to offer high leverage of up to 1:1000.
The recent changes and the broker’s relocation now cast doubt on the accuracy of its claim to have 2 million customers and 29,000 partners. Traders have to exercise caution and conduct thorough due diligence before engaging with NordFX.
Simultaneously, concerns have arisen with regard to Inveza Capital Ltd’s compliance with regulations. The Cyprus Securities and Exchange Commission (CySEC) has revoked its permission to operate due to alleged non-compliance with regulatory requirements.
This development underscores the importance of vigilance within the rapidly evolving broker industry. Traders have to scrutinize the regulatory status of brokers and conduct comprehensive research before entering into agreements, especially in an environment where regulatory changes and relocations can impact the reliability and transparency of financial services. NordFX’s move and the subsequent regulatory actions by CySEC highlight the need for increased scrutiny and diligence in the ever-changing landscape of the financial markets.
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