March 25, 2019, | AtoZ Markets – Recently an Australian brokerage company FP markets has acquired a CySec license. It seems that Australian brokers, following the example of their European competitors, are actively seeking opportunities to attract customers from the EU, after the last series of changes in the regulatory framework of retail brokers in the EU.
Australian brokers invade EU market
More Australian brokers are acquiring licenses in Europe in order to reach the EU customers. FP Markets is the latest Australian brokerage company that acquired a license from the Cyprus Securities and Exchange Commission (CySEC) to work in the EU countries.
Established in 2005, FP Markets is an online forex and CFDs broker that owned by an Australian based company called First Prudential Markets Pty Ltd. In the last quarter of last year, ICMarkets, one of the largest Australian brokers, also received a work permit in the EU. For now, however, the broker does not officially start its operations.
FP Markets has registered a .eu domain name and is currently declaring that it is not yet offering its services. The company is preparing to start accepting customers in the near future. ICMarkets displays a similar message on its domain .eu site.
Non-EU brokers face regulatory obstacles
Every retail brokerage company offering its services to the EU customers is required to have a valid regulatory permit. Moreover, the search giant Google requires brokers to provide it with a legal opinion, which they are allowed to post in any jurisdiction.
As a results Google Ads rules and the local authority regulations become the main limitation that brokers seek to circumvent. Despite all the challenges companies continue to find creative ways to attract new customers and adapt to the new rules.
While EU citizens are striving to gain more leverage in the offshore zone, the regulated part of the industry is shifting toward STP execution at the moment when spreads begin to matter more. Traditional market makers, for their part, migrated to offshore, while large, heavily capitalized brokers increased spending to attract more new customers to their well-known brands.
EU brokers seeking ASIC permit
While some EU brokers are seeking a regulatory permit to work in Australia, the local brokers in their turn are looking for ways to attract more European customers. Over the past few years, European brokers have been actively looking for ways to acquire an Australian license from the local regulator ASIC. The Australian authority remains strict for retail brokers. Just recently it has permitted a new broker to offer Forex and CFD trading. As the press reports, this company is Fortrade. Fortrade is an international Forex broker, that is licensed and authorized by FCA & ASIC.
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