Cyprus-Forum.com

[Pyrpolizer]

Cysec is not a safer regulator just because it puts up with a bunch of cowboy forex and until recently binary brokerages. They’re here for tax and “EU” regulation, but everyone knows that half these firms would not have survived a day under a better regulator.

Can’t compare the regulation provided by an FCA with that of Cysec. As far as markets are concerned, there is no market in Cyprus. Thin liquidity, low volumes, a bunch of low cap stocks that still owe accounts from years before. It’s a joke.

While I agree with you there's no market, I think they knock them out of the CSE when they own accounts for more than a year?

[B25]

Corporation tax in Cyprus is 12.5% not 20%.

[DT.]

Cysec is not a safer regulator just because it puts up with a bunch of cowboy forex and until recently binary brokerages. They’re here for tax and “EU” regulation, but everyone knows that half these firms would not have survived a day under a better regulator.

Can’t compare the regulation provided by an FCA with that of Cysec. As far as markets are concerned, there is no market in Cyprus. Thin liquidity, low volumes, a bunch of low cap stocks that still owe accounts from years before. It’s a joke.

While I agree with you there's no market, I think they knock them out of the CSE when they own accounts for more than a year?

You’re correct, unless you make a deal with the cse and agree to pay fines for a while.

[Paphitis]

I feel more comfortable with US and Australian markets because I feel they are better, less risky and that there is some form of accountability. I feel more protected.

CySEC has more experience regulating brokerage firms because they have more firms under license in their jurisdiction, with more applying every year. Limassol is the online trading capital of the world.

You actually have more protection under CySEC because the EU has ESMA which is the supranational regulator for member states.

If ASIC and the SEC are 'better' regulators, then they have only become so because they have had to evolve as a result of scandals.

Which kind of defeats the argument that the books can only be 'cooked' in Cyprus, among other things.

As far as trading / investing markets goes, you cant compare the Cypriot domestic market with that of large economies like US, UK, Australian or Germany. Those large multinational companies listed on the stock exchanges from those countries are in a different league.

ASIS in Australia have uncovered scandals in Australia. They are not common but they can occur and when they do, ASIC do get involved and the Federal Police get involved and will search a business with a fine tooth comb.

ASIC are good because they are proactive and if laws are broken people will be charged.

The Cyprus markets are not for me Max. the fact that Limassol is the online trading capital is probably because laws in Cyprus are very relaxed. There is also a reason why Cyprus is used as a money laundering destination by Russians.

In Australia, or the US, to get a trading license any business will need to meet somany standards and quality practices and it is expensive to set up as well before you can operate.

Yes there have been scandals but people have also gone to jail. That is the difference here.

[Paphitis]

Cysec is not a safer regulator just because it puts up with a bunch of cowboy forex and until recently binary brokerages. They’re here for tax and “EU” regulation, but everyone knows that half these firms would not have survived a day under a better regulator.

Can’t compare the regulation provided by an FCA with that of Cysec. As far as markets are concerned, there is no market in Cyprus. Thin liquidity, low volumes, a bunch of low cap stocks that still owe accounts from years before. It’s a joke.

Yeh they don't inspire me.

Also the fact that these binary brokers are allowed to operate in Cyprus is a big ccern.

Greece is another one I won't touch.

I'm sorry for that, but if you work hard for your money, Cyprus isn't the place to go to.

I invest in the US Market and Australia ASX. I am also comfortable with Japan, China, UK and other European markets. Cyprus is a no go zone. Greece too is a no go.

[Paphitis]

Cysec is not a safer regulator just because it puts up with a bunch of cowboy forex and until recently binary brokerages. They’re here for tax and “EU” regulation, but everyone knows that half these firms would not have survived a day under a better regulator.

Can’t compare the regulation provided by an FCA with that of Cysec. As far as markets are concerned, there is no market in Cyprus. Thin liquidity, low volumes, a bunch of low cap stocks that still owe accounts from years before. It’s a joke.

This is a matter of opinion, some of the most reputable brokerage firms are registered and regulated under CySEC.

There have been and there exists cowboy firms under every regulator.

A European resident would not get the same protection under ASIC as they would under a EU or FCA regulated firm.

I don't think they are repiutable Max.

If they were reputable, then why not get a US, or Australian Licence? because they would get spat out?

[Paphitis]

Here are two;

FxPro and FXTM,

Lol...Russian owned forex brokers? These are some of the most reputable brokers in the world? A big marketing budget and a premiership does not make the reputation.

They may be Russian owned but what is your argument for them not being Cypriot Investment Firms regulated under CySEC? Their head offices are in Limassol. They are Cypriot investment firms.

What does make a reputable brokerage in your opinion then?

Is it a safe and secure trading environment, with fair competitive pricing where you can withdraw your money at any time? Right!

Nothing do do with a marketing budget and these two company's provide that.

Max,

please don't get involved with them. You will get done over! These binary brokers are crooks.

By all means, stick with trading pips between currencies, and shares too, in a mature market but please don't put any serious money into these scams. They are scams. These 2 businesses would not be allowed in Australia or US.

STAY AWAY!

[Paphitis]

This is not the point Paphitis,

The point is that the books can be "cooked" and it happens in every country and not only in Cyprus.

Counter arguments from then, that the law is enforced in those country's and not in Cyprus is an irrelevant (possibly false) diversion from the point.

Whenever I hear the "only in Cyprus" arguments, I know it is only a regurgitation of indoctrinated dogma's.

I don’t believe that is the case Maximus.

Usually when they fudge it it is to show less profit for tax. That is not cooking the books. You would have to be stupid go the other way, because that costs money in the form of tax.

Looking at your example. A company can purchase a software for 50,000 and take it off their bottom line and then write up a 50 k asset on its ledger which they can depreciate over time.

Like QANTAS does when they buy planes. Like every other company does with plant and equipment.

This isn’t fudging. It is perfectly legal too. And everything is accounted for in the Balance Sheet.

Authorities have no issue with this at all.

Not entirely true. First of all it depends how high the corporate tax is. In Cyprus it's 20% and if profits are re-invested they are tax free. For companies that are already in the Cyprus Stock exchange (CSE) cooking the books is extremely difficult if not impossible, because especially for those companies there's too much control from the CSE itself.

What happened here was the cooking of the books with which they applied to join the CSF. Companies that were not doing so well were presented as profitable, as well as having prospects. No matter how much tax they would pay for presenting such a "nice" picture to potential investors, they would make up for it hundreds of times from the selling price of their otherwise over valued shares.

I'm really sorry but I don't see the CSE having any control at all.

It is all my perception but I haven't seen them enforce anything against a big company or a board of directors.

In the USA and Australia, I have seen FBI and Federal Police white vans with pretty much an entire SWAT raiding huge corporates because of even a hint of "insider trading"or misleading the market.

Banks have been hauled before the courts and through Congressional and Royal Commissions.

When did that ever happen in Cyprus?

I'm really sorry Pyro, but if I was a crook, Cyprus would be the place to go too. America not so much because you will do the time there and it won't be nice.

[Maximus]

Pahpitis,

FxPro and FXTM are not binary brokers but they are reputable brokers.

Binary's are banned now in the EU. They should have been strictly regulated under a gambling commission and not promoted as an investment vehicle.

Furthermore, the practices of many of these binary companies was highly unethical. The way they were operating as a collective is what tarnished their industry. They were essentially robbing people.

This was something I didnt understand, the odds were so far in the binary companies favor. (much better than a roulette wheel for a casino) but they couldn't let the clients entertain themselves and lose their money by themselves 'legitimately'. They had to rob them as well.

[Paphitis]

Pahpitis,

FxPro and FXTM are not binary brokers but they are reputable brokers.

Binary's are banned now in the EU. They should have been strictly regulated under a gambling commission and not promoted as an investment vehicle.

Furthermore, the practices of many of these binary companies was highly unethical. The way they were operating as a collective is what tarnished their industry. They were essentially robbing people.

This was something I didnt understand, the odds were so far in the binary companies favor. (much better than a roulette wheel for a casino) but they couldn't let the clients entertain themselves and lose their money by themselves 'legitimately'. They had to rob them as well.

There are many operating in Cyprus.

CySec has welcomed these operators into Cyprus whereas they are not allowed in the US, Europe or Australia.

This says it all Max.

http://www.binaryoptionsexplained.com/cyprus