If you have your funds with ACFX, you may want to know what happens to it now.
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.
What happened to ACFX?
ACFX is an online Forex & CFD broker which used to be regulated by CySEC, but now the license has been suspended.
The reason of the “license suspension” is because ACFX has intentionally delayed withdrawal processes to some Chinese traders’ accounts.
ACFX has reported that the reason of the delayed withdrawal processes were because the traders have traded illegal trading method “Swap Arbitrage” and earned unauthorized profits by that.
The broker has also specified that condition in its “Terms and Conditions” though, apparently that is not a fine reason for delaying withdrawals.
ACFX is now disallowed to open new accounts, receive signals to open new positions and many other financial operations.
Arbitrage on Oil Swaps
ACFX has reported some arbitrage tradings abusing bonuses before this trouble occurred though, there wasn’t any negative reviews against the broker as ACFX was processing these withdrawals(of profit made on unauthorized trading activity) anyway.
Then a few months before this “license suspension”, ACFX has started promoting its “high swap rate of Oils”.
That might have released some monsters that will damage its brand directly.
On 7th of April, CySEC has officially suspended its financial license from ACFX.
Withdrawal Process taking time
If you have your funds with ACFX, currently you have two options to choose from:
- Stay with ACFX and see if the broker comes back with its license
- Withdraw your funds now and look for another broker
Currently, withdrawal processes are taking time by ACFX but they are being processed one by one.
Also CySEC has instructed the mandatory withdrawals for all its clients, so you will probably receive your funds back in the near future in case you have requested for it.
What if a broker goes bankrupt?
Everyone is afraid of “Brokers going bankrupt”.
Good thing about the major regulatory authorities like CySEC is that they take a good care of its registered companies and clients.
ICF will compensate your funds
ICF stands for Investor Compensation Funds, and it is mandatory for all CySEC Brokers to be a member of ICF.
ICF will compensate your funds in case your broker failed to meet its obligations with clients. ICF holds about 17.5 million Euro and up to 20,000 Euro will be compensated per person.
If you believe that you are entitled to be compensated, you will need to report your situation to ICF directly.