The social trading network, eToro revokes ISA application and decides to leave the Israeli Forex market. What drove the Forex broker making such a decision?
15 September, AtoZForex – The Israeli Security Authority (ISA) has lost another major player player in the industry, as the brokerage eToro withdraws from the Israeli Forex market. The social trading network, eToro cancels its application for the ISA Arena license, naming its office in Cyprus as the new headquarters. Prior to the decision to revoke the ISA application, the broker's headquarters resides in Israel.
Except the symbolic meaning of exiting the market where 'eToro' launched its operations, the shift should not impact the company significantly due to its current focus. The brokerage is concentrating on growing its business in emerging markets like China and Russia. According to eToro’s UK MD, Joe Hall clarifies the underlying reasons for the decision of eToro:
“Following a continuous dialogue with the ISA and despite a mutual willingness, we have decided to withdraw our trading platform application as the company’s offering can’t reside in the current regulatory environment in Israel yet. As the world’s leading social trading network, eToro will keep its focus in other regions globally based on strategic partnerships with world’s leading financial institutions. We are happy to revisit our decision and continue the discussion with the ISA on how we can launch social trading in Israel.”
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What is left of the Israeli Forex market?
As eToro revokes ISA application, it adds on to the growing list of brokers who have withdrawn from the Israeli market. In response to these developments, the head of the Israeli Trading Arena Association, Tzah Druker mentioned that:
“Only a handful of companies are left that will be able to operate in Israel in a very limited fashion, and we hope that with the expected issuing of licences at the end of the month, the ISA will be smart enough to align with the intentions of the legislators to protect Israeli clients and not to push them offshore.”
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