In a noteworthy development within the financial brokerage industry, the notorious offshore broker Alpari and former CySEC-regulated ForexTime (FXTM), not less notorious, have officially withdrawn their membership from the Financial Commission. This decision underscores a broader trend among forex brokers reassessing their market focus, priorities, and regulatory approaches.
The announcement by the Financial Commission on January 27, 2024, ends nearly a decade of membership for both Alpari and FXTM. This move comes on the heels of ForexTime Limited, the CySEC-regulated entity of the FXTM brand owned by the Russian-born Andrey Dashin, ceasing all operations under its Cypriot entity as of December 31, 2023.
This decision was part of a strategic realignment, focusing on markets outside the European Economic Area (EEA) and enhancing its business-to-business (B2B) operations, Finance Feeds explains.
This statement will not be completely false, but it is worded very kindly. The report does not mention that Alpari and FXTM and their operators have had massive problems with regulators in recent months.
Read our reports on Alpari here on FinTelegram.
Exinity, a company established in 2020 by Andrey Dashin, who also owns Alpari and FXTM, had previously scaled back its services to retail investors in Europe in February 2021, Finance Feeds reports.
This retreat from the EEA market reflects a broader strategy among forex brokers to pivot away from the retail sector within the EU/EEA, including the UK, often due to stringent regulatory requirements and a shift towards other growth opportunities.
FinTelegram has pointed out the regulatory problems of these two brokers in many reports. The withdrawal from Europe is, therefore, perhaps not entirely voluntary.
Read our reports on Andrey Dashin here.
The withdrawal from the Financial Commission signifies a recalibration of Alpari‘s and FXTM‘s regulatory and market strategy, aligning with similar industry moves, Finance Feeds concludes. The Financial Commission, a private dispute resolution organization, will no longer process new complaints from clients of Alpari and FXTM following their departure. It will not be able to entertain any new complaints from the clients of these firms after their membership cessation.
Finance Feed should have first-hand knowledge of this, as they are connected to the Financial Commission through the people involved.
