IronFX is a well known name in online retail forex trading often making headlines, not only for its innovative products and award winning services, but also for its very successful and impressive promotional activities. One such example was the broker’s deal to sign a sponsorship deal with famous Barcelona FC, an agreement that caused many heads to turn.
Another thing for which IronFX has often received acclaim from media are the live trading competitions it launches from time to time, which seem to offer the biggest prizes in the industry ranging from supercars to ultra-luxury holidays. During the recent FIFA World Cup in Brazil this summer, IronFX had offered the winners of the ‘Traders Championship’ live competition the lifetime experience of a VIP package to attend the world’s biggest sports event.
On September 1st, the company stroke again this time announcing the launching of its biggest live trading competition, “The IronFX Intergalactic Trading Competition” where forex traders will compete for a place aboard a Virgin Atlantic spaceship! The completion will run from 1 September until 31 December 2014, with traders competing for a suborbital spaceflight, worth $250,000. In addition, the lucky winner will have the chance to “make history” by being the first trader in space. Moreover, one hundred runners-up will also receive up to $5,000 in cash each.
Commenting on the launching of this extra-ordinary competition, the Chairman & CEO of IronFX Global Markos A. Kashiouris, pointed out that: “IronFX is unmatched in its efforts to reward clients and partners with unbeatable prizes and once-in-a-lifetime experiences. The ultimate prize of a trip to space is unique in the forex industry, and represents our tireless commitment to unrivalled innovation and incomparable excellence.”
It is perhaps a very unfortunate timing that shortly after announcing this news, the broker which boasts a global presence with over 60 offices worldwide, and more than 1,400 employees providing support in over 45 different languages, and boasts of its compliance with international regulatory standards as it is authorized and regulated by FCA, ASIC, FSB (South Africa), FSP (New Zealand), CRFIN, UCRFIN and CySEC, as well as being a member of the Eurex Exchange and an EU-regulated and MiFID-compliant firm, is coming under “friendly fire” from its own affiliates in China.
According to a local TV programme broadcasted on Chinese TV there is evidence that IronFX does not have the permit to execute international securities, foreign currency trading, or equity trading in mainland China and also that the company has deceived many of its affiliates by suddenly stopping the payment of their commissions. According to the same TV programme a fraud investigation against IronFX had already been opened by the local authorities.
Although it its reaction to all this, the company maintains that it has legal opinions that its operations in China are legal and legitimate and that with regard to the funding, IronFX does not do anything different from what the whole industry does, also stressing that they were “very surprised by the false allegations of the TV station and our lawyers are taking the necessary legal steps against the TV station,” it becomes clear that being accused especially in a country like China where the currency market is highly regulated and all international transactions are reported to the government is definitely unwelcome and might mean more problems than simply a tarnished reputation.
We will keep following this story as it unfolds and inform our readers accordingly, but in the meantime perhaps some of you forex traders out there might want to start packing for that trip to space!