Sapphire Markets Clients Migrated to Cortis FX but Still Have No Regulatory Protection

In August, Sapphire Markets clients received a notice that all clients of the broker would be migrated to another company, Cortis FX. 

“We are pleased to formally introduce Cortis FX as the brokerage that will be taking over Sapphire's operations and servicing your accounts.”

_{Sapphire Markets sent an email to notice about the migration}

The company's website has been closed.

According to the email sent by Sapphire Markets, the broker has been looking to resolve licensing challenges in the past few years in order to give its clients free access to their funds. However, up until the moment the broker shut down its website, it only had a registration with the St. Vincent and the Grenadines Financial Services Authority (SVG FSA).

_{Sapphire Markets LLC is an SVG FSA-registered firm}

What’s more, the UK's Financial Conduct Authority (FCA) has flagged Sapphire Markets as an “unauthorized firm”.

_{Sapphire Markets has been warned by the financial regulator in the UK}

BrokersView user Sam was a Sapphire Markets client and complained against the broker for not giving him appropriate responses to issues related to failed withdrawals.

In February 2022, Sam created a trading account on the platform and deposited £3,300.

After a few days of trading, Sam submitted a withdrawal request for £1,000 but received no response. Sapphire staff just told him that he could not withdraw all of his money at once but did not provide more help to resolve the problem. Besides, no further resolution or compensation was given.

Is it Sapphire or Cortis FX holding Sam’s money? No one ever answers after the migration. This was a huge concern for the client's financial security, but it was never resolved.

Are clients who successfully migrate from Sapphire to Cortis FX legally protected? Not really.

Cortis FX's website does not provide any regulatory information for traders to check its license. The broker even reminds investors that “The St Vincent & The Grenadines Financial Services Authority does not offer you any protection against losses when trading with Cortis FX.”

In other words, all client funds at Sapphire Markets or Cortis FX were not protected by regulators.

Victimized traders who make money by investment may soon find themselves unable to withdraw their funds. Their balances are just meaningless numbers in the trading platform with no way to withdraw any penny to their bank account.