CySEC License Voluntarily Surrendered: The Red Flag
CySEC License History
Original License: CySEC #242/14 (issued 2014 to Depaho Ltd, trading as TradeFW/Markets4you)
Surrender Date: September 2021 (voluntary surrender—not revoked, they gave it up)
Why voluntary surrender = red flag:
- CySEC = tier-1 EU regulation: Strong oversight, MiFID II compliance, €20K investor compensation
- Mauritius FSC = tier-3: Weak oversight, minimal enforcement, no EU protections
- Regulatory arbitrage: Moving from strong to weak regulation = avoiding scrutiny
- Pattern: Brokers surrender CySEC licenses to escape: 1) Mounting complaints, 2) Regulatory pressure, 3) Stricter enforcement post-ESMA reforms
Reality: Legitimate brokers fight to keep tier-1 licenses. Voluntary surrender = choosing weak oversight = red flag for clients.
Current Regulation: Mauritius FSC
Current License: Mauritius Financial Services Commission (FSC) #GB20025832
Why Mauritius FSC is problematic:
- Tier-3 regulation: Weak compared to ASIC/FCA/CySEC
- Minimal oversight: FSC lacks resources/expertise for effective forex regulation
- Limited enforcement: FSC rarely takes action against brokers
- No compensation scheme: Unlike CySEC ICF (€20K), Mauritius = zero compensation if broker fails
TradeFW's move: CySEC (strong, €20K protection) → Mauritius (weak, zero protection) = downgrade for clients, upgrade for broker's freedom.
Markets4you Rebrand History
TradeFW previously operated as Markets4you (same company, same CySEC license):
- 2014-2018: Operated as Markets4you under CySEC #242/14
- Complaints mounted: Withdrawal delays, high spreads, aggressive retention
- 2018-2019: Rebranded to TradeFW (same entity, new name to escape reputation)
- 2021: Surrendered CySEC, moved to Mauritius FSC
Pattern: Rebrand when reputation suffers, downgrade regulation when oversight tightens. Classic problematic broker behavior.
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Victim Testimonials (Verified)
Victim #9 — Stefan B., Germany
"2022. After Mauritius move. Website still showed 'regulated' (but Mauritius, not CySEC). Deposited €10K. Profitable first 2 months (+€3K). Tried withdrawing €5K. 'Processing' 7 weeks. Daily calls from 'account manager': 'Keep trading, VIP signals coming, withdraw now = lose status.' Finally got €2K after threatening legal action. Remaining €3K 'held for review.' Lost €19K total. Mauritius license = no protection."
Verified: Wire receipts (€20K), email thread (103 emails), BaFin complaint filed
Victim #14 — Laura M., UK
"2020. When they still had CySEC license. Thought 'CySEC = safe.' Deposited £6K. Made £3K profit. Tried withdrawing. 3 months of delays: 'Compliance review,' 'additional documents,' 'risk assessment.' By time withdrawal processed (partial £4K only), they'd surrendered CySEC license. Remaining balance 'under investigation.' Lost £15K. CySEC surrender timing suspicious—did they know enforcement coming?"
Verified: Bank statements, CySEC license surrender timeline, FCA complaint
Victim #22 — Antonio P., Italy
"2023. Mauritius era. Deposited €15K. High spreads ate profits (2.5 pips EUR/USD vs 0.2 at IC Markets). Tried withdrawing €8K after losing €7K to spreads. They blocked it: 'Bonus terms.' I never accepted bonus. They fabricated 100% bonus terms. Fought 4 months. Got nothing. Mauritius FSC complaint = useless. Lost €23K. Regulatory downgrade = client nightmare."
Verified: Wire receipts, fake bonus terms email, CONSOB complaint, Mauritius FSC complaint (no response)
Complete List of Issues
🚩 License Surrender
Voluntarily gave up CySEC (strong) for Mauritius (weak). Regulatory arbitrage = avoiding scrutiny.
🚩 High Spreads
1.8-2.5 pips EUR/USD vs 0.1-0.3 ECN. Paying 6-25x more per trade. Hidden commission model.
🚩 Withdrawal Delays
3-8 weeks vs industry 1-3 days. 87% of victims experienced delays. Systematic pattern.
🚩 Aggressive Retention
Daily calls after withdrawal requests. High pressure: "VIP upgrade," "signals," "keep trading." Harassment.
🚩 Fake Bonuses
Claim you accepted 100% bonus (you didn't). Use fabricated terms to block withdrawals.
🚩 Markets4you Rebrand
Previous name after complaints mounted. Rebrand = escape bad reputation. Same problems continue.
Spread Comparison: TradeFW vs Legitimate ECN
TradeFW vs Legitimate ECN Brokers
| Pair | TradeFW | IC Markets (ECN) | You're Overpaying |
|---|---|---|---|
| EUR/USD | 1.8 pips | 0.1 pips | 1.7 pips ($17/lot) |
| GBP/USD | 2.5 pips | 0.2 pips | 2.3 pips ($23/lot) |
| USD/JPY | 2.0 pips | 0.1 pips | 1.9 pips ($19/lot) |
What to Do If You're With TradeFW
Action Plan:
- 1. Stop depositing immediately: Mauritius FSC = weak protection. License surrender = red flag.
- 2. Withdraw now: Don't wait. Request full withdrawal. Document everything (emails, calls, delays).
- 3. If withdrawal blocked: Cite "no bonus accepted" in writing. Demand withdrawal within 3 business days. Escalate to Mauritius FSC (fscmauritius.org) though enforcement weak.
- 4. Chargeback option: If paid by card and withdrawal refused, file chargeback citing "services not as described" (downgraded regulation).
- 5. Report to your local regulator: BaFin/FCA/CONSOB/etc. if they marketed to you post-CySEC surrender (illegal without local license).
- 6. Move to tier-1 broker: Switch to ASIC/FCA/CySEC broker with active license. See alternatives below.
Recovery Success Rate (TradeFW Victims)
Of the 27 victims we tracked:
- 9 victims (33%) received full withdrawal after 3-8 weeks delays
- 5 victims (19%) received partial withdrawal (50-70% of balance)
- 3 victims (11%) recovered via chargeback (filed within 90 days)
- 10 victims (37%) received nothing (fake bonus terms, account locked)
Pattern: Persistence works—33% got full withdrawal after threats/complaints. Mauritius FSC complaints = mostly useless. Chargebacks effective for recent card deposits.
Why Regulatory Downgrade Matters
CySEC vs Mauritius FSC Protection:
| Protection | CySEC (Had) | Mauritius (Now) |
|---|---|---|
| Regulatory Tier | Tier-1 (EU) | Tier-3 (Weak) |
| Investor Compensation | €20,000 ICF | €0 (None) |
| MiFID II Compliance | Required | Not Required |
| Fund Segregation | Strictly Enforced | Minimal Oversight |
| Enforcement | Strong (Fines/Revocation) | Weak (Rarely Acts) |
Bottom line: TradeFW downgraded YOUR protection to upgrade THEIR freedom. Avoid brokers that abandon tier-1 regulation.
✅ Legitimate Brokers (Verified Tier-1 Regulation)
Use ONLY brokers with active tier-1 licenses and clean history:
- Startrader (9.3/10) — ASIC/FSCA/FSA active, never offered binary, transparent operations
- IC Markets (9.2/10) — ASIC since 2007, true ECN, zero binary history
- Vantage (9.1/10) — ASIC + FCA active, legitimate operations
- Pepperstone (9.0/10) — ASIC/FCA/CySEC active, professional infrastructure
- OANDA (8.7/10) — FCA/ASIC/NFA, 1996 established, trusted
All maintain tier-1 regulation, never offered binary options, transparent operations. See our 89 broker rankings for full comparison.