Cyprus is home to quite a few forex brokers. One these brokers, Windsor Brokers Ltd. responds to questions following the crisis and explains about the 3 different types of Forex Brokers in the euro-zone island nation.
They state that funds are held out of the country and thus client funds are safe. Are you trading with broker based in Cyprus? Are your funds safe? Here is their press release:
Cyprus, March 27th, 2013 – During the past ten days, Cyprus has been going through a rough time and has been the ‘hot topic’ on news worldwide.
Several brokers were approached in order to share their views. The MD of Windsor Brokers Ltd., was one of them since Windsor had recently been nominated as one of the top ten CIFs based on capital.
When asked how the bailout will affect FX brokers in Cyprus and what measures they have taken as a company, Mr. Johny Abuaitah, MD of Windsor Brokers Ltd replied:
“When a country is facing a financial crisis, all types of businesses are affected in one way or another. It is not all about where money is held and whether is it safe or not. Uncertainty, lack of trust and confidence are the main consequences for businesses and clients. With the final bailout deal for Cyprus being finalized, much of the uncertainty has now dissolved.
The greatest affect will be on brokers who held most of their funds and/or their clients’ money in Laiki Bank and/or Bank of Cyprus. I believe that for these companies it could be the end, unless shareholders will absorb their clients’ losses and raise new funds to operate the business until part of the money held with these two banks are received.
The second group of companies, are those who had most of their money in Cyprus but not in the two troubled banks. It could also be the end for these companies if they didn’t inject new funds to pay their clients and to operate their business in Cyprus during the days that the banks in Cyprus were closed for business.
The third group of brokers either had enough funds or all of their funds outside Cyprus. Such companies managed to continue operations normally and to satisfy clients’ payment requests. What such brokers need to do for now, is to restore the confidence and trust of its clients in Cyprus and their company.
Windsor was part of the third group. One of our main Risk Management Policies is to keep clients’ and Company’s funds in a number of first-class banks distributed over a widespread geographical area.
We have paid extra attention to this policy after the collapse of several known banks and brokers over the past few years. In addition, Windsor does not hold Clients’ funds in either of the two Banks in Cyprus. Our operations were therefore not affected by the Cyprus bailout deal.”
About Windsor Brokers Ltd
Windsor Brokers Ltd. was one of the first brokers to have been established in the Republic of Cyprus. Financial products that can be traded online include Forex, CFDs and Futures OTC.
Windsor Brokers Ltd is licensed/regulated by CySec (Cyprus), EEA authorized by the FSA (UK), registered with the AMF (France) and BaFin (Germany) and complies with MiFID.Get the 5 most predictable currency pairs