Our team learned that award-winning FX and CFDs brokerage XM has applied for a license in South Africa. The company has submitted the documents required with the local regulator, the Financial Services Board (FSB), on August 29.
XM's application with South Africa's FSB
Lately South Africa has become a very popular forex and binary options hub. Earlier in August another leading Cypriot broker, FXTM, acquired a license from FSB. In September, forex and binary options broker Grand Capital opened an office in the Republic of South Africa (RSA). Since the beginning of the year, the South African regulator, the Financial Services Board, has also granted licenses to AvaTrade, HotForex, Xtrade and other companies.
The reason why an increasing number of forex and binary options brokers are targeting South Africa is that the country’s economy is rapidly growing, and there is an expanding demand for financial services providers. Yet another reason is probably the rising regulatory pressure upon forex (and especially binary options) brokers in Europe, urging them to seek their fortune elsewhere.
The Financial Services Board (FSB) is in charge of the licensing and overseeing financial service providers. It supervises the non-banking financial services industry, including collective investment schemes and financial advisors and brokers, among others.
Trading Point of Financial Instruments Ltd., doing business as XM, is already licensed in Europe by the Cyprus Securities and Exchange Commission (CySEC). The company also operates in Australia via Trading Point of Financial Instruments PTY LTD, which is regulated by the Australian Securities and Investments Commission (ASIC).
XM (Formerly XEMarkets) offers trading in a wide range of instruments, including more than 50 currency pairs, CFDs on commodities, indices, precious metals and energies on the robust MetaTrader 4 platform. Its clients are able to use leverage up to 1:888 and benefit from the various promotions and contests this broker regularly launches.