Clients of UFX, a retail CFD broker, have raised concerns over the sudden suspension of the platform's operations. These concerns were heightened by the fact that the broker has put a halt to opening new accounts on its platform.
Despite the sudden unresponsiveness of the UFX platform, what investors consider most alarming is the message on its website, which reads, "UFX is no longer offering investment services to clients in this region" without prior notice.
There have been several speculations about the validity of this message and the root cause of the broker's unresponsiveness.
Details of UFX's Suspended Operations
In December 2010, the UFX operator received CySEC's authorization to operate its FX and CFDs in Cyprus. Trading services provided by the broker were available within the European Economic Area (EEA) and Asia and Latin America. However, the broker appears to have suspended its operations and shuttered quietly.
The news of its likely closure broke when numerous reports of "no response" from its clients flooded the internet. Clients from different regions who had attempted to access the broker's website at different times aired their thoughts on various social media platforms. The majority claimed that the termination message reads the same irrespective of their locations.
Additionally, it appears that the owners of UFX have stopped updating the website "UFX.com" as no recent information has been uploaded. The customer support system has also been unavailable.
UFX's suspension of operations may be traced back to the June 2020 report by the FCA. The report stated that Reliantco Investments Ltd, trading as UFX alongside two other Cyprus-based FX brokers, had planned to cease offering investment services in the UK.
According to sources, the decision of the firms to cease operations was based on notifications from CySEC, its original regulator, and not the UK authority. When the news was first reported, it was unclear if these brokers had abandoned the UK market voluntarily or had been forced to do so by the CySEC.
In confirming the suspension of operations, an anonymous spokesperson for UFX stated that "UFX ceased accepting new clients several years ago, and has not been actively marketing or acquiring new customers since 2018." He further added that it is not uncommon for brokers under a regulatory body to cease operations.
About UFX
UFX was founded in 2007 to trade currency pairs, EFTs, CFDs, and other assets. The broker offered MetaTrader 4, a mobile trading platform, and the UFX Web Platform.
In 2014, the broker changed its name from UFX Markets to UFX. CySEC and VFSC regulated the broker. The broker also received multiple national and international awards for its speed and user-friendly trading tools.
