The Forex industry is abuzz with talk that former Trading Point (recently rebranded as XEMarkets) employees will be abandoning the beleaguered Forex brokerage to begin their own company. According to CySEC, the Cyprus Securities and Exchange Commission, a CIF (Cyprus Investment Firm) license was granted to a company named FXNet, whose website and services are not yet available to the public. According to reports, there are several former XEMarkets employees on the payroll and the company is still recruiting employees for other open positions. Following a correction from XEMarkets, we understand that at least one of FXNet's founders left XEMarkets to work at iForex before making the decision to start his own brokerage.
Like its predecessor, Trading Point of Financial Instruments, XEMarkets has been plagued with criticism from traders for failed executions and lost funds. Though Trading Point had tried to lure traders with high welcome and deposit bonuses, XEMarkets' strategy is to promise top-notch customer service and trading conditions, promises which remain empty for many traders. Interestingly, iForex has faced its own share of woes, with its license getting temporarily revoked last year.
Nevertheless, it would be premature to judge the upcoming FXNet on the grievances against the brokers where its founders were previously employed. Perhaps the founders of FXNet opted to open a new brokerage because they were trying to correct the mistakes they witnessed in the past. It may be beneficial for FXNet to form with an experienced and knowledgeable staff and specific goals for the future. I, for one, look forward to seeing what this new brokerage can bring to the table.