Only a month, the financial license of ACFX will be suspended according to the announcement by CySEC.
ACFX - What's now?
ACFX has decided to close its business on May, 2016. The Broker will no longer accept any new account openings, new orders or deposit. If you were trading with ACFX you are only allowed to close your existing open positions.
ACFX is a trade name of Atlas Capital Financial Services Ltd, which is an online Forex & CFD broker regulated by CySEC and FCA.
It has officially confirmed that the CySEC
The reason of the suspension
There were some Chinese clients worrying about the withdrawals of their profits from ACFX.
ACFX has officially responded that the broker will assess each withdrawal request and process it accordingly, and this was about a month ago.
And now, CySEC has decided to suspend the license of ACFX as the violation of the financial service may possibly endanger the interests of its clients.
It hasn’t been confirmed officially that ACFX is actually violating the laws or has any penalty fines liability, but CySEC mentions that ACFX now must comply with some provisions.
No Trading, No new clients, No promotions
Hercules has been notified from the broker that it has not yet accepted the suspension, but if ACFX will comply the provisions, ACFX
- cannot open new accounts for traders
- cannot receive any orders from its clients
- cannot provide financial services to traders in Cyprus or outside Cyprus
- cannot advertise itself as a financial broker
- must process all withdrawals immediately if client wishes
If you are a client of ACFX, you may wait for an official instruction from ACFX for the time being.
Chinese Arbitrage traders
Arbitrage trading is restricted by many brokers as it is abusing its platform and service to give an advantage to traders themselves.
ACFX also has specifically mentioned that the broker does not allow unauthorized arbitrage trading to make profit.
And if ACFX finds the unauthorized trading method in its platform, the broker may terminate the Agreement immediately and/or reverse and/or cancel any/all transactions on your account.
Please note that ACFX is not the only one broker which has terminated profits upon arbitrage trading, but there are so many brokers which have carried the action as they mention it in its T&C.
So it is good to remember that arbitrage trading is not the most favorite trading method for brokers.