Security of Funds
Tradomart Ltd., conducting its brokerage business as ForexMart, is duly licensed and regulated by the Cyprus Securities Exchange (CySEC, license number 266/15).
Furthermore, Tradomart Ltd. has a cross-border CySEC license, permitting investment and ancillary services under the European Financial Instruments Directive (MiFID) across the European Economic Area.
CySEC applies certain rules to investment brokerage companies, one of the most important of which is the minimum capital requirement. Cypriot financial watchdog requires forex brokers to hold at least €1,000,000 in order to conduct their business activities legitimately. Regulation of financial services providers usually involves such a requirement, therefore UK brokers must possess a minimum of 730 000 EUR, Australian ones are obliged to hold at least $1,000,000 and US-based brokerage firms - $20 million.
What is more, an additional guarantee to clients’ funds is provided, as all CySEC-regulated companies are members of the Investor Compensation Fund, which secures the claims of covered clients and provides them with compensation of up to 20,000 EUR per person, if the broker is unable to fulfill its obligations. Similar compensation schemes apply in the UK and FCA-regulated brokers fall under Financial Services Compensation Scheme, where the maximum compensation cover is £50,000 per person.
