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Online forex broker iForex will terminate its forex broker license and cease operations in native Israel, online finance media LeapRate reported on Tuesday, citing official company notice. The broker has already ceased accepting new orders and existing ones will be closed on 6 June, 2016.
The decision was taken shortly after the Israeli financial regulator introduced law amendments regarding forex trading service providers, the media said, citing own sources. iForex’ management found the new restrictions “simply too onerous to justify a local business, based on the size of the local market”.
Israel-based iForex is operated by Clio Financial Trading, which is not part to the iForex Group, which also provides, through subsidiaries, trading services under the iForex brand. The group the holding company iForex Holding Ltd., Cyprus-licensed forex broker iCFD Ltd. (previously iForex Cyprus), risk management and liquidity provider Formula Investment House Ltd., and funds settlement FIH Formula Investment House Clearing Ltd.,
According to Israeli media Calcalist, the Israeli company has taken a NIS 5.0 million loan, which equals about USD 1.3 million, from FIH Formula Investment House Clearing Ltd. and as part of the agreement to shut down the Israeli operations it will repay the loan.
The new Israeli legal framework forbids forex brokers to provide bonuses to their clients and to offer leverage of no higher than 100:1 for forex pairs and gold, 40:1 for equities, and 20:1 for other tradable instruments. In addition, deposits are allowed only via bank and wire transfers, but not by bank cards.