The Cyprus Securities and Exchange Commission (CySEC) issued a notice on Thursday, warning that the license of forex and binary options broker Starfish Markets has still not been activated.
Starfish Markets received a license from the CySEC for provider of financial and ancillary services in December 2015. Since its license is not activated yet, the broker is not permitted to provide any type of financial services or to obtain clients’ money or financial instruments.
Following regulatory amendments from mid-2015, financial entities receive a non-activated CySEC license, which later the regulator activates. However, licensees first need to meet certain condition in order to receive an activated license status.
The Cypriot authority said it has received complaints that Starfish Markets has begun operating and will investigate the signal.
The broker keeps a register of all licensed forex brokers and their license status, which is available to the public.
New Zealand-based Starfish Markets operates under the trading brand Starfish FX.
It offers trading in 250 forex and binary options instruments to both retail and institutional clients, focusing on the Asian markets.
The broker is a member of the Financial Services Complaints Ltd (FSCL), an independent New Zealand not-for-profit External Dispute Resolution (EDR), which provides dispute resolution service to its members and their clients.
Cyprus is a destination where many brokers chose to obtain a license. It is relatively easier to comply with the CySEC’s licensing and regulatory requirements than with those of other large authorities, yet a CySEC license provides safety and security to investors. Moreover, a license by the CySEC ensures access to the markets of all other EU member states, as well.
Other brokers that are regulated in Cyprus include FxPro, XM, FXTM, EXNESS, Trading212, Hot Forex, and IronFX.