Customers of the broker STO FS and AFX Markets will recover?

The second month has just elapsed since suspension of the Forex STO Financial Services owner's license (STOFS.com) by CySEC and around 1,5 of the FCA reaction month. What is the current situation of the broker and his clients? Everything seems to be starting to clear up. But are you sure?

The STO FS website works

Entering the website of the STO broker, which is still flawless, we still see information about the suspension of the license and the need to close all positions by August 7, 2019. The only "inconvenience" is that under the tabs for opening a demo or real account, we can not do anything. By logging into the customer panel, such an option appears, but the option of withdrawing funds is still unavailable (we have already written about it on 1 August). So the question arises what happens to clients' funds?

First of all, you need to separate traders into two groups - clients of AFX Markets Ltd. supervised by FCA and clients of AFX Capital Markets Ltd. supervised by CySEC. At the moment, the situation of the former is clearer.

Administrative team appointed

The Supreme Court of England and Wales appointed CG Recovery Limited as the administrator of a British company. This means that specialists from the above-mentioned entity will deal with resolving the issue of refunds of approx. 1200 to broker clients. Current information is presented on a dedicated website HERE.

What to do to recover funds? Just send your application by e-mail English language containing the required information, which we describe below (shipping address: afxmarkets@cg-recovery.com). The email title should be entered "AFX Markets Limited" and yours first name and last name.

Information needed:

• First name and last name,
• Address,
• Phone number,
• E-mail adress,
• Information on the status of the injured party: Customer / creditor
• The value of the claim (may be approximate),
• The bank account of the broker to which funds have been paid,
• Payment Transaction Date)

The administrator, after receiving the notification, will send confirmation of receipt of the claim and will keep you updated on the progress of the funds enforcement procedure by sending notifications and reports. Clients will also receive information by email about future meetings and possible hearings in the case. The publication of the first report is scheduled for October 22. It is worth remembering that in the first half of this year the amount of compensation guaranteed by the British fund Financial Services Compensation Scheme (FSCS) was raised from 50 000 GBP to 85 000 GBP (100% of the amount).

The whole procedure is similar to the one they had the dubious pleasure of knowing, clients of the failed broker Alpari UK in 2015. At that time, a special administrator also dealt with the repayment of clients and creditors, and the whole operation took about two years (it must be taken into account that the scale of the broker and the client base was much larger).

CySEC is silent

At the moment, the mystery is what about the clients of the Cyprus branch. According to the local regulations, the funds are insured through Investor Compensation Fund in 100% to the amount 20 000 EUR. At the moment, there is no specific information regarding the proceedings pending against the company or the procedure for starting returns. Although CySEC initially suspended the license of AFX Capital Markets Ltd. for a period of 10 days, after this communication no more official documents appeared in the case.