Social trading broker TG Traderglobal gets CySEC license

Social trading broker TG Traderglobal gets CySEC license

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The Cyprus Securities and Exchange Commission (CySEC) said on Tuesday it has granted a Cypriot investment firm (CIF) license to TG Traderglobal Ltd., a forex social trading platform operator.

The license was obtained on 5 August, 2016, as is currently not activated. CySEC licenses are initially non-active, which means that licensees are not allowed to provide the services for which they have received it. In order to get an activated license status and commence operations, entities need to meet a number of conditions set by the regulator. Financial service providers cannot do business in Cyprus without having an authorization.

TG Traderglobal CySEC license

TG Traderglobal is an affiliate to TraderGlobal, an entity based in St. Vincent and the Grenadines. The web-based TraderGlobal platform combines traditional brokerage service with the latest social opportunities of forex trading as users can make transactions independently or copy those of peers. The platform supports ECN trading accounts with market order execution at floating spreads and maximum leverage of 200:1.

Social trading platforms allows investors to trade, follow other fellow traders and copy their trades and trading signals, or get followed themselves. It is a good choice for traders with little to no experience who don’t feel comfortable developing their own strategies.

The CySEC provides two types of CIF licenses – limited, under which the financial company can execute orders on behalf of clients, but not on its own account, and full license, which allows an entity to act on both its own behalf and that of clients.

CySEC regulation is preferred by many forex brokers. CIF license holders gain access to all countries in the European Economic Area (EEA). In addition, Cyprus is known as an area with strict yet also less restrictive regulation, compared to other reputatative forex legislations. Although the number of newly-licensed CIFs is stable, in the past months many entities have parted with their licensees, either at their own discretion and forced by the regulator. The CySEC has been tightening its supervision, continuously suspending brokers’ licenses for noncompliance with its requirements. Some of these suspensions have turned into license withdrawals or renouncements.

The CySEC licenses, supervises, and regulates players on the local capital market. Its managing board consists of five members, each one of which serves a term of five years.

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