According to the latest reports, Vantage Global Prime stops Forex services outside Australia. The recent clampdown of the Australian regulator is taking effect and has also impacted IFGM last week. Will more Australian brokers follow and adjust their operations?
Vantage Global Prime stops Forex services outside Australia
On Monday, the broker sent an email to its clients, saying that:
“in light of recent regulatory announcements, Vantage Global Prime….will no longer be providing financial services to clients outside of Australia.”
The email was saying that clients can close their positions and can sign up to the broker’s Cayman Islands-regulated entity instead. AtoZ Markets team has reached out to VantageFX directly, but no comments were given by the VantageFX team on this matter.
Vantage Prime in brief
Vantage Prime's is a local subsidiary of VantageFX, which is part of the Vantage International Group limited. Vantage Prime is registered under the name Vantage Global Prime Pty Ltd and the company is regulated by ASIC, with license number ACN 157 768 566, AFSL No.428901.
As for the Vantage International Group Limited, the parent firm is authorized and regulated by the Cayman Islands Monetary Authority (CIMA). The company offers trading products including Forex, indices CFDs, commodities, and six of the world's most popular cryptocurrencies.
Vantage FX, not the first to cease services to traders outside of Australia.
Last Thursday, IFGM a forex broker registered under the business name of Intelligent Financial Markets Pty Ltd announced that it would start refunding non-Australian clients. The firm confirmed that it would no longer be providing services to clients outside of Australia. As well as Vintage Global Prime, IFGM is licensed in Australia by the Australian Securities & Investments Commission (ASIC) and holds an Australian Financial Services Licence.
After the introduction of restrictive regulations taken by the European regulators towards the different trading instruments including CFD and binary options, Australia was considered as a safe haven for the retail brokers.
The country with a solid regulator, access to banking facilities and permissive regulations, was seen by many brokers as one of the last jurisdictions from which they could operate with some flexibility. However, everything changed in April when the parliament decided to expand ASIC product intervention powers.
There is no certainty about how the market will develop under the new regulations. However, seemingly some companies are considering their options before the upcoming product intervention measures are presented.
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