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Gerald Segal is a Managing Director at LeapRate, which provides analysis of the Online Forex Trading world. Gerald's reports are a leading source of information on the size, growth and regulation of the Online Forex industry. Prior to founding LeapRate Gerald was an investment banker for 18... More
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  • Cyprus FX Brokerages Scramble To Reassure Clients 0 comments
    Mar 22, 2013 10:14 AM | about stocks: KEY, LYG, MCQEF, MNXBF, MNXBY, MS, MSFT, MTU, NTRS, OXPS, PNC, PNSN, RBS, RJF, RY, SAN, SCGLY, SCHW, STT, SWQGF, TD, TRAD, TRI, UBS, USB, WFC

    The website home pages of several leading Cyprus FX and Binary brokers now lead with "Your Funds Are Safe" ads.

    Cyprus flagAs the Cyprus bailout fiasco heads into its fourth day -- and as Cyprus banks remain closed -- the Cyprus-based FX and Binary brokers caught in the middle of all this have been scrambling to reassure customers that it is business-as-usual for them, with most if not all client funds held outside the country with Tier 1 banks.

    We believe that the Cyprus FX scene will very soon shake out in a very 'haves' and 'have-nots' way -- with those (usually larger, regulated) brokers holding client funds (as well as their own) outside the country escaping relatively unscathed, and those keeping client funds in the country -- even with "Tier 1" global banks, but physically held in Cyprus -- facing severe liquidity problems.

    Both the 'haves' and 'have-nots' in Cyprus, however, will continue to face the "perception" problem that all Cyprus financial institutions are going to have going forward, which we wrote about yesterday.

    For more details see LeapRate's Forex Industry News at leaprate.com.

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