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IGM Forex with a suspended CySEC license

IGM Forex with a suspended CySEC license

created Paweł MosionekJuly 27 2018

IGM Forex with a suspended license. This is the latest announcement of the Cypriot regulator CySEC (Cyprus Securities and Exchange Commission). Reason? Concerns about practices used by the broker and meeting the criteria of capital requirements supporting trade security.

Suspending the first nail in the coffin

IGM Forex is accused of non-compliance with Art. 28 sec. 1 of the Act, according to which each CIF must have "funds that are greater than or equal to the sum of its capital requirements". The regulator decided to suspend the license due to the fact that the breaches may endanger the interests of customers.

Often the suspension of the license is the beginning of the end. In the end, without having the appropriate relevant rights, the broker can not perform any activities such as the execution of orders, opening new accounts or booking deposits. Not only that, customers can apply for closing their positions immediately or according to the previously recorded rate at the customer's request.

But there is a light at the end of the tunnel. The broker has 15 days to comply with the license terms and apply for an entitlement suspension. If he succeeds, the situation will return to normal and he will continue to provide his services. However, if nothing changes within the above-mentioned 15 days, the regulator will start the procedure of complete withdrawal of the permits previously granted. Also until then, the IGM Forex website must contain information about the suspension of the license by CySEC.

About IGM Forex

The broker has been present on the market for only two years. Its headquarters are in Limassol in Cyprus. The offer is based on the MetaTrader 5 platform and the STP order fulfillment model.

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About the Author
Paweł Mosionek
An active trader on the Forex market since 2006. Editor of the Forex Nawigator portal and editor-in-chief and co-creator of the ForexClub.pl website. Speaker at the "Focus on Forex" conference at the Warsaw School of Economics, "NetVision" at the Gdańsk University of Technology and "Financial Intelligence" at the University of Gdańsk. Twice winner of "Junior Trader" - investment game for students organized by DM XTB. Addicted to travel, motorbikes and parachuting.