December 24, 2020 | AtoZ Markets – Hirose UK, the British subsidiary of a Japanese broker, announced on Thursday that it is no longer accepting clients from the European Economic Area (EEA) due to the negative impact of Brexit on the company's business.
Hirose UK shutting down, stops accepting EEA clients
“Please be advised that Hirose UK will no longer be able to accept clients from EEA countries, this is due to the UK's exit from the European Union, which will take place on January 1, 2021,” said the brokerage company. "We have already stopped accepting new applications from these countries."
As a reminder, Hirose UK is regulated by the UK Financial Conduct Authority (FCA) and uses passports to provide services in the European Union.
However, after the transition period and the final withdrawal of the UK from the EU without a deal between the countries, companies on both sides of the English Channel will find themselves in a quandary.
“If you are from an EEA country, your trading account will be closed. If you have a balance in your trading account, please contact us so we can arrange a refund,” the message says.
Meanwhile, the Japanese broker's business in Europe is constantly shrinking. The company's revenue for the last fiscal year declined by 17%, resulting in significant annual losses. Moreover, the broker is focusing more on B2B clients in the UK, growing its professional trader base.
While Hirose UK is shutting down its European division, many UK brokers are licensed by European countries to continue operating in the EU.
It is worthy of note that Interactive Brokers has recently opened subsidiaries in Budapest, Hungary, and Ireland. The broker has already started the migration of clients from Eastern Europe from its British branch to the Hungarian one.
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