The Cyprus Securities and Exchange Commission (CySEC) said it has fined €20 000 the forex broker UR Trade Fix for noncompliance with section 6(8) of the Investment Services and Activities and Regulated Markets Law of 2007. More specifically: the company provided the investment service of portfolio management without this service being stated in its authorization. UR Trade Fix is the parent company of the social forex trading site Tradeo.
In its statement CySEC notes that the violation of this section of the law carries fines of up to €350 000, but UR Trade Fix has not committed similar offenses in the past. Another mitigating factor is that the company has applied for obtaining an authorization for portfolio management.
UR Trade Fix has had a license from CySEC since 2015. It includes permission to provide the following investment services: Reception and transmission of orders in relation to one or more financial instruments and Execution of Orders on Behalf of Clients. The license also includes the ancillary services safekeeping and administration of financial instruments, including custodianship and related services and foreign exchange services where these are connected to the provision of investment services.
According to its site, UR Trade Fix offers OTC trading in forex anc CFDs on the MetaTrader 4 platform. Tradeo, on the other hand, is a STP social trading forex broker that offers trading in more than 100 instruments, with a leverage of up to 1:200, also on MT4.