The Cyprus Securities and Exchange Commission (CySEC) decided on Friday to suspend the Cypriot investmenty firm (CIF) license of multi-asset brokerage Boursotrade for suspicions of alleged violations, the regulator said in a notice on its website.
Boursotrade offers trading in forex, contracts for difference (CFDs), indices, stocks, bonds, and commodities. It operates the brands BoursePro and BourseBinary.
The broker has not at all times been compliant with the authorization and operating conditions of the Investment Services and Activities and Regulated Markets Law. Its own funds seem to appear less than the required amount, according to the regulator, and its total capital ratio appears less than the required.
The Cypriot watchdog said it has initiated a license suspension since the broker’s violations may be putting at risk its own operation and its clients’ interests.
The broker has one month within which to take actions to comply with the Cypriot laws. Within that time, Boursotrade is not allowed to perform any investment activities and must allow its clients to close all open position and receive their funds and profits back. Also, it cannot take on new clients.
In addition, the broker cannot advertise itself as investment services provider during the suspension period and should mention on all of its websites that its CIF licence has been suspended.
Boursotrade does not hold any other licenses and does not fall under the supervision of another regulator.
When engaging with unauthorized and non-regulated brokers, traders are putting their investments at higher risk. We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySEC, FCA, and CFTC/NFA, among others.