Online forex broker, Tadawul FX was recently awarded its Cyprus Investment Firm License (103/09) by CySec - the Cyprus Securities & Exchange Commission known for its stringent criteria. It is an incredible accomplishment for Tadawul FX, otherwise referred to as TDFX, which recently relocated its main offices to Limassol, Cyprus.
(PRWEB) November 9, 2009 -- Online forex broker Tadawul FX, has obtained its Cyprus Investment Firm license (103/09) by the Cyprus Securities & Exchange Commission (CySec). CySec is the regulatory authority for the financial services industry in Cyprus. Tadawul FX Limited was originally established and registered with the number HE231759 under Cyprus law in 2008, when an avenue for potential growth became evident in the region. Prior to this, the company was registered in Switzerland under Tadawul FX SA (CH-550-1049025-2). This arm of the company has since become responsible for the IT development component of Tadawul FX.
Although many online forex trading providers and commodity trading providers apply for the CySec investment firm license, its strict regulations and auditing requirements mean that many of them are not actually awarded it. Stringent procedures must be adhered to and requirements met before it is achieved, so for Tadawul FX it is an admirable accomplishment, which truly vouches for the integrity of the company in an industry rife with dishonesty.
In order to gain the license, Tadawul FX was reviewed in terms of external and internal auditing by companies such as S.Platis and Deloitte Ltd. These procedures were to ensure adherence to all CySec and MiFID requirements and especially money laundering prevention.
The MiFID - Markets in Financial Instruments Directive - which sets the standards of the European Union, and within that, Cyprus, under its 2007 investment Services and Activities and Regulated Markets Law (Law 144(I)/2007) - focuses primarily on maintaining and increasing consumer protection. Its efforts to increase efficiency and transparency of EU investment services mirror the work ethic of Tadawul FX and its honest approach to online forex trading.
The CySec license formalises Tadawul FX Limited's adherence to its laws and confirms it complies with all relevant regulations. In order to do this Tadawul FX was required to categorise all clientele, protecting their key information in order to guarantee client security. Other criteria for the license included demonstrating that Tadawul FX aims for the most beneficial result for client orders with reference to their costing, likelihood of swift execution and settlement.
The license awarded now also gives TDFX clients access to the investor compensation fund - effectively insuring their funds, under the License No. CIF 103/09. Set up by CySec and the Central Bank of Cyprus, it is designed to protect the investments of all companies registered in Cyprus offering investment services by securing claims of retail clients.
In the event an investment firm is not able to cover the reimbursement of funds - held directly or indirectly - to a client pertaining to the investment services, the investor compensation fund does so.
Although professional or institutional investors are not covered by the fund and there is a limit of €20,000 per client regardless of the currency, quantity of accounts held or location of the investment service provider, the fund does ensure that should Tadawul FX become insolvent due to the actions by their online forex traders, their retail clients will still be protected.
Additionally, the investor compensation fund ensures the safe return of any financial instruments being kept or managed by an investment services provider on behalf of their clients.
Ramzi Chamat, CEO of Tadawul FX cannot stop smiling. "In the competitive world of online forex trading, it's difficult for novice online forex traders to know who to trust. Thankfully, now that TDFX has the CySec license endorsing our work ethic, the decision is clear."
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