CySEC warns against Pari Fx Trade and FX PREMIUM clone companies
The Cyprus Securities and Exchange Commission (‘CySEC’) officially warned investors that Pari Fx Trade and FX PREMIUM are not licensed to provide investment services in the country. According to the regulator, brokerages and their websites are not operated by Cypriot Investment Firms and not authorized to provide investment services and activities in the country.
The Cyprus Securities and Exchange Commission, known as CySEC, is the financial regulatory agency of Cyprus. As an EU member state, CySEC’s financial regulations and operations comply with the European MiFID financial harmonization law. A significant number of overseas retail forex brokers have obtained registration from CySEC.
Pari Fx Trade is an offshore company, registered in Seychelles. The broker claims to be licensed by the U.S. National Futures Association NFA, the Financial Services Commission and the Cyprus Securities and Exchange Commission (CySEC). However, the CySEC license actually belongs to another CySEC-regulated firm BDSwiss. All the regulatory information on the Pari Fx Trade’s website is false.
As to the FX PREMIUM, this broker also claims to be regulated in the UK, Cyprus, France, and Germany. However, all the licenses belong to another CySEC-regulated company, not associated with FX PREMIUM.
When engaging with brokers that do not operate on the grounds of a valid license, issued from a trustworthy authority, traders are putting their investments at higher risk. It is better to avoid dealing with unregulated brokerages and choose properly regulated and reliable brokers. A good example of such are the ones supervised by the FCA or ASIC. You can read the full Pari Fx Trade and FX PREMIUM reviews here.