Is Cyprus another Belize? | Forex Factory

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Is Cyprus another Belize?

  • #1
  • First Post: Edited 4:21pm Nov 22, 2007 8:30am | Edited 4:21pm
I know that Belize has been used as a save haven by many scam companies. Belize grants resident companies protection from lawsuit or at least give them a degree of protection against lawsuits etc... (based on my experienced)

I have been a client of NorthFinance for many months and was satisfied. However, recently I am having second thoughts seeing how NF is registered in Belize and operates in Cyprus and its a Russian company???

WHY would they be in Cyprus and in Belize? Why not just operate in Russia?
Is Cyprus a haven for scam companies too? ie, Does Cyprus offer some degree of protection to local companies etc?

Please dont post comments like "why put money offshore?" or the like. Heck, US companies are offshore to me, so that comment shoots back at you. And please dont post comments like "only non-NFA regulated brokers are located there.." Heck, 2 NFA regulated brokers (UGM who removed some winning trades before sending me our money and 1World who refused to remit money) scammed me and my friends. NF is unregulated YET it hasnt scammed anyone <correction to previous word "anymore"> (till now).
  • #2
  • Nov 22, 2007 3:18pm Nov 22, 2007 3:18pm
Quoting BurgerKing
I know that Belize has been used as a save haven by many scam companies. Belize grants resident companies protection from lawsuit or at least give them a degree of protection against lawsuits etc... (based on my experienced)

I have been a client of NorthFinance for many months and was satisfied. However, recently I am having second thoughts seeing how NF is registered in Belize and operates in Cyprus and its a Russian company???

WHY would they be in Cyprus and in Belize? Why not just operate in Russia?
Is Cyprus a haven for scam companies too? ie, Does Cyprus offer some degree of protection to local companies etc?

Please dont post comments like "why put money offshore?" or the like. Heck, US companies are offshore to me, so that comment shoots back at you. And please dont post comments like "only non-NFA regulated brokers are located there.." Heck, 2 NFA regulated brokers (UGM who removed some winning trades before sending me our money and 1World who refused to remit money) scammed me and my friends. NF is unregulated YET it hasnt scammed anymore (till now).

I have heard of no recourse for clients who have accounts in Cyprus and I dont believe there is any regulation. For me I just can't personally chance my money at a broker where I have no idea the opportunities of safety of funds, but why not just call them and ask for yourself??? I mean if they are doing it for a good reason they should be able to tell you. If they beat around the bush regarding an answer to your question I'd pull out sooner rather than later.. I know that they had that awful policy of making clients withdraw via e-gold so i'm sure something may be fishy

As for the NFA and dealing with UGM and now One World, those guys are ages behind keeping this market safe and up to date from what I have seen.... For how long have people been on this website complaining about those brokers without anything happening is a shame. Either enough people aren't complaining to the regulators, or they are just slow...
  • #3
  • Nov 22, 2007 4:20pm Nov 22, 2007 4:20pm
Someone already asked NF about their Belize/Cyprus and had posted in this forum the story.

Basically, NF answered that they chose to be in Belize/Cyprus in order to accept clients from more locations. If they chose to be in a particular location, then they wont be able to accept some clients; an example would be Marketiva (location unknown - not posted on their website); this is not allowed to accept US clients, but NF is allowed to.

I'd like to point out that e-gold is a US company, own and operated by an American, but registered and operates in Belize. I honestly believe e-gold is not a scam/shady company. To date, I have no problem with e-gold. However, its been used by lots of scamming HYIP companies and several of the more sophisticated ones shows off Belize postal address and phone numbers (some cheap shot HYIPs completely dont post any such information).
  • #4
  • Nov 22, 2007 6:14pm Nov 22, 2007 6:14pm
Quoting BurgerKing
Marketiva (location unknown - not posted on their website)
Marketiva location is provided on their webiste.
http://www.marketiva.com/index.ncre?page=locations

BTW, this is not the topic of the thread, and I think this is an interesting one, hope somebody can enligthen us with it.
Ado Whether you believe you can do a thing or not, you are right.
  • #5
  • Nov 22, 2007 6:38pm Nov 22, 2007 6:38pm
Belize and Cyprus probably offer significant tax benefits if the setup is legally structured, through an offshore trust. I have no idea how the tax system works in russia, but it's probably much more expensive than Belize :-) It also separates them personally and any onshore businesses from any legal disputes.

Also, I believe it negates the need to acquire any local regulatory authorizations.

I quite like egold, but it really is out of the question to expect to be able to run an relatively anonymous ecurrency that is open to fraud and money laundering in the USA. What is happening with them these days?
  • #6
  • Nov 23, 2007 12:53am Nov 23, 2007 12:53am
Quoting peterM
Belize and Cyprus probably offer significant tax benefits if the setup is legally structured, through an offshore trust. I have no idea how the tax system works in russia, but it's probably much more expensive than Belize :-) It also separates them personally and any onshore businesses from any legal disputes.
Adding to what peterM has said, seting up a broker company offshore is much easier then anywhere else, you just need some basic papers signed (some friends of mine check this out).
"Abandon all hope, you who enter here" La Divina Commedia, Dante Alighieri
  • #7
  • Nov 29, 2007 5:08pm Nov 29, 2007 5:08pm
US citizens (for the most part) have been brainwashed into thinking that "if it's not U.S.(American) - it's not safe and MUST be a scam". Of course, SEC, IRS and Feds in general will do everything in their power to badmouth, "investigate" and attempt rule-by-fear every chance they get. Otherwise they risk losing control over the (now) not-so-mighty dollar. And loss of control = loss of power. And power is the reason they took the job to begin with. So...

I was born and raised in Spain but am also a US citizen so I have seen both sides of the financial fence. being free to do with your money as you please and being over-regulated in the U.S. Don't you wonder why brokers outside of US say "NO U.S. CITIZENS WELCOME"? Because they don't want to deal with U.S. Period!

Earlier poster said "[they] can't accept U.S. citizens"... It's not "can't" but "WON'T" ... accept U.S. citizens.

BELIZE is preferred by North Americans.
CYPRUS is preferred by Europeans.
South Pacific is preferred by Asians.

There is a reason why brokers go offshore.
1) No tax on income
2) No over-regulated U.S noose around their neck (yet they still get the lucrative American market)
3) Asset protection which every business could want. Why expose yourself to a greedy, frivolous, money-hungry legal system when you can grow your business tax-free and lightly regulated.

BTW... The safety of the U.S banking system was recently rated by the Economist as #27 using bank failure rates as a guide. This means that you can put your money pretty much anywhere in the civilized world and have your money be safer than in the U.S.

Please, get over your fear and stop believing the stories of how the entire world is out to get you.

E-GOLD IS FINE. NORTHFINANCE IS FINE. Get advice from a non-American. See if they ever had a problem.

Just thought I'd post a different view.
  • #8
  • Edited 6:23pm Nov 29, 2007 6:02pm | Edited 6:23pm
The past few years Costa Rica has been cracking down on lottery, stock, and FX boiler rooms and the word on the street is most of them have packed up and have gone to Cyprus.

Lottery rooms tend to contact the US cause there generally going after the elder but the stock and FX rooms do not contact the US becasue they know that US will leave its borders to prosecute.

Also most of these rooms are selling options and have everything from on-line account statements and I have even seen one go has far as issuing client mater cards that they could use to withdrawl the funds but w/ the use of high pressure sales there was never any money to when draw when it came time.

I wouldn't put it past these guys to venture into spotfx. I'm not saying you should trade with a broker in the US but there are many broker that are regulated by someone.

I just can't figure why some of you guys take the extra risk. Forex isn't enough for ya...
  • #9
  • Nov 29, 2007 8:19pm Nov 29, 2007 8:19pm
So many people (US mostly) get so hung up on "regulation" and "security" and "safety". What happened to the "home of the brave"?

What good is all the regulation? You file a claim, report them, hire a lawyer, blah, blah, blah, and in the end you end up losing more time and more money and you still end up a loser.

At least, outside of US you are free to do as you please. FOCUS ON MAKING MONEY. Not on fear of losing it. Then if your broker runs off, you'll just make it right back. They can NEVER take that away. (But this is the "land of the free"... right?!?).

My entire point is that you'll find more crooks and scams in the US then offshore. Isn't it a fact that US is the world's biggest jailer.

I suggest people go very small... minis. Try it out. Talk to people who have GOOD things to say. You just might be pleasantly surprised. Even in BELIZE and CYPRUS.
  • #10
  • Nov 29, 2007 9:19pm Nov 29, 2007 9:19pm
It appears that people have mixed feelings with regards to Belize, Cyprus (and to include also British Virgin Islands and other similar territories)...

Personally, I havent been scammed by Cyprus companies; I have been scammed by 2 USA NFA brokers, and have been scammed by one investment company in Belize (but not NF or egold); I am however net profit with that company though.

I currently prefer to trade with non USA brokers. My only USA/NFA broker is MBT and the rest are in Europe and in SE Asia.

Quote
I just can't figure why some of you guys take the extra risk. Forex isn't enough for ya...

The brokers are indeed a major risk. And in my book, the only 2 brokers that scammed me are USA/NFA brokers. Since August this year, I have distanced from USA/NFA brokers and have since been able to withdraw many times. In my book, USA/NFA brokers are riskier.
  • #11
  • Nov 29, 2007 10:28pm Nov 29, 2007 10:28pm
I agree with you BurgerKing;

FX brokers, in general, carry risk. But people have a very FALSE sense of security when in comes to US brokers. What good does it do you to "report them"? If they're gone, they're gone and there is nothing the mighty US regulators can do about it.

Not to mention that you DO NOT have a single shred of privacy remaining, all in the name of "security".

(Not sure if I'm supposed to write names here, but...) US "regulated" broker #1 just never got heard from again 4 months ago. I DID report them, though Still don't have my money. 5 weeks ago, I opened account with a VERY "regulated" US broker for $250. Made several trades and bal was $517. I wanted my $267 profit as "play" money and requested a withdrawal. Here's a part quote from the broker:
"In order to receive your funds ... ... to prevent fraud and money laundering activity,,, we request a NOTARIZED statement outlining the reason for your withdrawal request... clearly legible copy of your passport or driver's license, social security no. as well as a letter of good standing provided by your banking institution..."

I just about blew my top. It's MY MONEY. I EARNED THIS MONEY. You have a detailed record of EVERY trade I made. What difference is it to you and what business is it of yours why I want MY $267?

Frankly, I'll take my chances with a NON-US crook.

BURGERKING... Any other NON-US brokers... other than NF... that have similar services as NF? PM would be great if you don't want to post here. Thanks.
  • #12
  • Nov 29, 2007 10:37pm Nov 29, 2007 10:37pm
btw... A company might incorporate in Belize in order to eliminate income tax. NOT necessarily to commit a scam. Being based out of Cyprus offers privacy/anonymity - a concept foreign to US citizens who sold out in the name of "security" - NOT necessarily because they have something to hide.

Also... U.S. is one of the biggest "offshore" / tax heavens in the world... To other countries. Other countries incorporate in Delaware (no corp tax and bearer shares are STILL available - which means you DON'T even know the name of the owner) or Nevada. No corp tax, non-disclosure). Does that mean that U.S. harbors scam artists? Condones fraudulent activity? Something to think about.
  • #13
  • Nov 30, 2007 12:36am Nov 30, 2007 12:36am
Quoting freevey
btw... A company might incorporate in Belize in order to eliminate income tax. NOT necessarily to commit a scam. Being based out of Cyprus offers privacy/anonymity - a concept foreign to US citizens who sold out in the name of "security" - NOT necessarily because they have something to hide.

Also... U.S. is one of the biggest "offshore" / tax heavens in the world... To other countries. Other countries incorporate in Delaware (no corp tax and bearer shares are STILL available - which means you DON'T even know the name of the owner) or Nevada. No corp tax, non-disclosure). Does that mean that U.S. harbors scam artists? Condones fraudulent activity? Something to think about.
at least there some regulation in the u.s. and they do prosecute.
If I Go Broke Trying Then I Will die happy.
  • #14
  • Nov 30, 2007 10:15pm Nov 30, 2007 10:15pm
Of course they do... It's the American way. Lawyers make the money, politicians get re-elected and the little guy still loses his money.
  • #15
  • Dec 1, 2007 11:12pm Dec 1, 2007 11:12pm
Quoting freevey
Of course they do... It's the American way. Lawyers make the money, politicians get re-elected and the little guy still loses his money.
Could not have said it better myself.......
Same Whore .... Different Dress
  • #16
  • Dec 3, 2007 8:50pm Dec 3, 2007 8:50pm
Quoting BurgerKing
I know that Belize has been used as a save haven by many scam companies. Belize grants resident companies protection from lawsuit or at least give them a degree of protection against lawsuits etc... (based on my experienced)

I have been a client of NorthFinance for many months and was satisfied. However, recently I am having second thoughts seeing how NF is registered in Belize and operates in Cyprus and its a Russian company???

WHY would they be in Cyprus and in Belize? Why not just operate in Russia?
Is Cyprus a haven for scam companies too? ie, Does Cyprus offer some degree of protection to local companies etc?

Please dont post comments like "why put money offshore?" or the like. Heck, US companies are offshore to me, so that comment shoots back at you. And please dont post comments like "only non-NFA regulated brokers are located there.." Heck, 2 NFA regulated brokers (UGM who removed some winning trades before sending me our money and 1World who refused to remit money) scammed me and my friends. NF is unregulated YET it hasnt scammed anyone <correction to previous word "anymore"> (till now).
again if your not putting in not even 5k, then really all of this dont matter. they are same ppl playing same game on you no matter which fx broker you choose. (exception of IB, MBT)
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  • #17
  • Dec 15, 2007 11:07am Dec 15, 2007 11:07am
I think Easy Forex is based in Cyprus too. Do they seem to be pretty reputable (never used them)?

Clif
  • #18
  • Last Post: Dec 16, 2007 3:58pm Dec 16, 2007 3:58pm
Quoting BurgerKing
It appears that people have mixed feelings with regards to Belize, Cyprus (and to include also British Virgin Islands and other similar territories)...

Personally, I havent been scammed by Cyprus companies; I have been scammed by 2 USA NFA brokers, and have been scammed by one investment company in Belize (but not NF or egold); I am however net profit with that company though.

I currently prefer to trade with non USA brokers. My only USA/NFA broker is MBT and the rest are in Europe and in SE Asia.



The brokers are indeed a major risk. And in my book, the only 2 brokers that scammed me are USA/NFA brokers. Since August this year, I have distanced from USA/NFA brokers and have since been able to withdraw many times. In my book, USA/NFA brokers are riskier.
such appears to be a growing trend. both mm and clients rather be in other parts of the country.
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