The recent bankruptcy of Hedefonline, an unlicensed forex mediation website that served Turkish investors shows the importance of dealing with credible institutions, said industry representatives.
The company collapsed with 20 million Turkish Liras of investors’ funds. The Cyprus-based Hedefonline, which is associated with Hüseyin Kırçıltepeli, is unable to meet its obligations owing to financial difficulties it faced due to turmoil in the financial markets
The mediation firm, which was established in 2000 in the Aegean province of Izmir, was operating unlicensed in Cyprus. It had shifted its operations to the island 3 years ago after Capital Markets Board, Turkish capital markets regulator, filed criminal charges against it.
Depositors who lost their funds with the company have created a site called Hedefonline-forex.blogspot.com.tr, targeting to air their complaints and rallying themselves to take unified measures to try to get back their money. Industry representatives warned depositors against dealing with unlicensed firms.
“Even though the forex market is designed for companies to control their risks, with the individual saving owner’s entrance to the sector, it has turned into a speculation area you can earn money in through buy-sell dealers and leverages,” Arif Ünver, who heads Capital Markets Investors Association told Hurriyet Daily News.
Ünver emphasized that since the forex market is very tricky affair, investors should go for licensed and reputable mediators.
“There are very important issues to pay attention to in the forex market. Firstly, it is not easy to audit as there is not an organized market like Borsa Istanbul,” Ünver added.“Forex transactions in Turkey used to be carried out under the counter but lately Capital Markets Board has introduced a regulation and handed out licenses to companies. Therefore, owners with savings must check the companies with the SPK to see if it has a permit. The license of employees at these kinds of institutions should be questioned as well.”
To contact the reporter of this story; Yashu Gola at firstname.lastname@example.org