Fx traders lose in Cyprus Banking Crisis, Flee to FNIB
FX brokers of Cyprus such as FxPro which apparently kept all the money of the customers (and a large part of its funds own) outside the country should not be affected. However, the small FX brokers who kept money in the Laiki or Bank of Cyprus – and there are many – will suffer, and perhaps disappear. These brokers will simply see 40% of their funds disappear.
Some broker’s forex in Cyprus made statements to reassure their customers, but these statements seem worthless to us – if much of their money, in addition to money from customers, has disappeared, how are they going to do for work? The shareholders of these small FX brokers (and binary) are going to pour fresh capital into their societies? (We doubt).
Most clients have less than 100,000 trading accounts €, and these accounts are in general segruegues. But more accounts of 100,000 euros of big clients detained at Laiki and Bank of Cyprus – will be taxed at 40%.
Unlike the financial crises that we have seen recently in other countries (US 2008, the Greece and Spain last year…) the Cyprus crisis has nothing to do with the behavior of the Cypriot community. In the United States all citizens has too much were involved in real estate overpriced mortgages.
In Greece and Spain all citizens was pleased to be able to count on Government jobs, and to see their governments borrow massively to support an unsustainable lifestyle. But in Cyprus, the national economy has experienced good growth – the problem lies in Cypriot banks that made loans attempts abroad. FNIB.co now becomes the investors’ saviour after this catastrophic crisis. Based in New Zealand, FNIB therefore remains isolated against crises.
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