Sweden’s FI notes high volume of complaints against Cypriot brokerages banned in the UK

Maria Nikolova

Shortly after the Cypriot and the UK regulators took action against the brokers operating brands like 24option and ITrader, the Swedish regulator admits that it has received a high number of complaints against these entities.

As FinanceFeeds reported earlier this week, several Cyprus-based brokers were targeted in a regulatory action in the UK and Cyprus.

Hoch Capital Ltd (trading as iTrader and tradeATF), Magnum FX (Cyprus) Ltd (trading as ET Finance), Rodeler Ltd (trading as 24option) and F1Markets Ltd (trading as Investous, StrattonMarkets and Europrime) were ordered to stop offering their services to UK investors. The Cypriot regulator ordered Hoch Capital and Rodeler Ltd to cease all regulated activities entirely, irrespective of the geography to which they passport investment services under European Union law. Magnum FX (Cyprus) Ltd and F1Markets Ltd may only provide investment services to their respective existing clients not resident in the UK but are prohibited from engaging in any and all marketing or promotion of investment services and/or onboarding new clients in any European Union member state.

Several days after the FCA and CySEC announced the action taken, Sweden’s financial markets regulator FI issued a statement on the matter. The Swedish regulator notes the action taken by its counterparts and explains that the brokers in question have been active in Sweden via brands such as ETfinance, Investous, Itrader and 24option.

FI has also noticed an increased number of consumer complaints from these companies. These have mainly been about shortcomings in counseling, aggressive marketing, hidden fees and difficulties in withdrawing money. There have also been several complaints that the brokers have not clearly explained the nature of the product the consumer has invested in. The companies offer investments in CFD contracts, which is a high risk product. In several cases, consumers have reported how the product they invested in has lost all of its value in a short time despite the promise of a secure investment.

FI has had a dialogue with CySEC and reported on these companies and the complaints that Swedish consumers have filed.

FI notes that anyone willing to withdraw their money from any of these companies can do so by contacting the company directly and requesting a withdrawal.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<