10 May, AtoZForex, London – The CEO of Forex and CFDs brokerage LegacyFX, Mariano Obludzyner, has confirmed that LegacyFX closed down yesterday, terminating its brokerage operations. The company was established in December 2015 with the support of Leverate’s shareholders and using the license of LFS (Leverate Financial Services), which is under the auspices of CySEC.
LegacyFX closed down
The brokerage firm was to be operating independently from its technology provider and was to provide diversification of revenue flows for the owners of shares in both companies. But the shareholders of Leverate which financed the brokerage have reconsidered their decision to run the FX brokerage using the proprietary tools developed by the Forex and CFDs trading technology firm after the unveiling of the project few months ago.
At the time of outset, it was believed that there was potential in a merger of a brokerage and the implementation of the technology and services that Leverate offers, with the new company providing services directly to retail clients from its base in Limassol, Cyprus, and using the license of LFS. However, in a saturated marketplace, Leverate has decided to remain focused on its technology business and committed to existing clients. An investor explaining why LegacyFX closed down publicly said:
“Firstly, we wanted to get a brokerage up and running, and the other was to use that as a test base for Leverate’s technology solution so that it could be assessed from the perspective of a broker. One of the shareholders got to understand the level sensitivity of Leverate’s vested interest in a retail brokerage among our commercial clients.
The results we got back from testing generated positive outcomes in most cases, and we considered that as far as user experience is concerned with our broker solution, we are going in the right direction, however bearing in mind the sensitivities that had been raised, we concluded that maybe the time has come not to pursue that particular avenue any further.”
The staff at Cypriot brokerage have been informed upon LegacyFX closed down, as they have quit their positions. Legacy FX CEO Mariano Obludzyner opted not to provide any comment.
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