The importance of regulatory licensing comes as CySEC announces the launch of ICF for Maxigrid

About Maxigrid Limited

Maxigrid Limited operates the DUALIX and AGM Markets fx and CFDs trading brands.

DUALIX obtained a score of 1.42 on WikiFX. DUALIX claimed that its full and direct CYSEC licenses in Cyprus have been revoked, and currently has no other effective regulatory licenses

AGM Markets, with a score of 1.88, announced that the full CYSEC license held in Cyprus has been revoked and there is no other valid regulatory license currently available.

It is reported that Maxigrid's CYSEC regulatory license was revoked on February 14 this year. At that time, through the investigation of CYSEC in Cyprus, it was determined that Maxigrid, as a member of ICF, was indeed unable to fulfill its debts due to investment claims for a long time due to financial reasons. Therefore, CYSEC could only revoke the authorization of Maxigrid's regulatory license and decided to start the compensation payment process for Maxigrid's users one month after the cancellation.

Although CYSEC decided to launch on March 28, it was only announced recently. Once the compensation process is initiated, ICF, a subsidiary of CYSEC, will publish an invitation for claims application in national newspapers to invite customers to file claims against Maxigrid, and inform them of the procedures, content, and deadline for submitting the claims application. Investors involved in the compensation are invited to pay attention to the invitation in time.

About CYSEC in Cyprus

CYSEC, the full name of the Cyprus Securities and Exchange Commission, was previously associated with offshore regulators. But Cyprus joined the European Union in 2004, and its geographical advantage has helped it become the world's foreign-exchange center.

Since 2007, online foreign exchange trading has exploded. Thanks to Cyprus's accession to the European Union, Internet trading has become more popular, EEA can travel across the EU member states, and hundreds of foreign exchange brokers have registered in CYSEC.

From the beginning, CYSEC had been copying the EU's regulatory standards and was also subject to the EU's MiFID II policy, which greatly limited leverage. However, the Cyprus CYSEC at that time was still controversial in China, mainly because of the limited domestic economic situation.

In 2016, the Cypriot government finally decided to overhaul its regulations in a big way. The size of its staff has doubled, making Cypriot supervision a novelty in the foreign exchange industry. For example, it increased annual fees for brokers, raised the bar for entry, and forced members to join the CIF Protection Fund, which is designed to provide the government with enough money to pay investors in the event of future bankruptcy.

About CIF Protection Foundation

CIF Protection Fund is the Investor Compensation Fund, a member Fund established by the Cyprus Securities Regulatory Commission. The Fund covers investment services, investment activities, the operation of regulated markets, and other related matters.

of course, the most attention is the foundation of the compensation function, according to the law of Cyprus, who joined the investor compensation fund brokers company financial problems, and can't normal financial obligations or pay compensation to the customer, the ICF will protect the safety of the brokers of client money and pay their clients due to money. Note that investors will not pay any compensation for losses caused by their investments.

Generally speaking, ICF compensation has two main body decisions: one is CySEC or its board of directors; Another is the start of the Cyprus court. In this case, the relevant supervisory authority, such as the liquidation team of the bankrupt broker or the official receivership team, is required to file a complaint and claim with the Cypriot court.

ICF is currently able to pay out only 90 percent of customer funds, with a maximum of €20,000 available to eligible applicants. That means the maximum payout a trader can receive is 20,000 euros, regardless of how much money he has previously invested.

But in the two years since the foundation was set up, there have been no cases of its members receiving compensation after bankruptcy. But the announcement by the broker FXFINPRO CAPITAL, which was delisted by CySEC in late 2016, of the start of the customer compensation process is a great step forward in CySEC's investor protection efforts.

Visualize has something to say

All the above shows the importance of regulatory licenses, which is why WikiFX has repeatedly emphasized that the choice of forex platform must focus on regulatory licenses! An excellent and reliable regulatory license can not only give investors a sense of capital security but also restrain and standardize the behavior of foreign exchange platforms, especially when a forex platform accident or bankruptcy can get help from the regulatory authorities!

Therefore, before choosing a forex trading platform, it is necessary to check the authenticity of the platform and then check whether it has a safe and reliable regulatory license. Only before carrying on the trade comprehensive prevention black platform, can make the road of forex trade go smoothly!