The europefx.com website is owned and operated by Maxiflex Ltd. The company is authorized by the Cyprus Securities and Exchange Commission (CySEC) under license number 258/14. The company is also a member of the Investor Compensation Fund (ICF).
The legal section of the website explains that the company acts as an agent and some other institutions will be execution venues for client’s orders. Maxiflex Ltd relies on third party liquidity providers as a counterparty to hedge client orders. This confirms the claim that Maxiflex Ltd uses the Straight Through Processing (STP) model to execute the orders, acting on behalf of a client. In other words, the company is not a counterparty to every client transaction and there is no direct conflict of interest that exists among market makers.
In early December, the CySEC announced that it has reached a settlement with the Cyprus Investment Firm (CIF) Maxiflex Ltd for possible violations of Τhe Investment Services and Activities and Regulated Markets Law of 2017. These violations appeared between January 2019 and September 2020. The settlement involves the company compliance with organization requirements; conflicts of interest; general principles and information to clients; suitability, appropriateness and reporting to clients and the obligation to execute orders on terms most favorable to the client.
Maxiflex Ltd has paid the amount of EUR370,000. It was one of three CySEC-licensed brokerage firms whose permission to offer CFDs to British consumers was revoked earlier this year.