AtoZForex has found out that HFT brokers shut down its operations in the Polish Forex market, while being one of the key players int he industry. What are the reasons behind?
20 October, AtoZForex – The Forex broker in Poland, operating under the name HFT brokers, has decided to close its doors in the region. Reportedly, the firm is planning to focus more on other, more profitable elements of its business.
XTB HFT brokers deal failed
The first signals about HTF brokers were noted this Tuesday, as the other Polish brokerage firm, X-trade Brokers (XTB), has published its quarterly results along with the press release stating that the talks with HFT brokers about the customer base acquisition failed.
This information caused a wave of disturbances in the Polish Forex market, as HFT Brokers is one of the largest players in the Polish Forex sector, where it possesses almost 10,000 accounts and serves over few thousand clients. The HFT Brokers confirmed the information about its operations’ closing only on a local forum, where they explained the reasons for such a drastic decision.
Why did HFT brokers shut down?
The official statement by HFT Brokers in one of the Polish local forums is as follows (translated from Polish):
“Regulatory cap requirements have forced the brokerage house to maintain the very high amount of funds (owing to an increase in transaction volumes). From January to September 2016 FX business has translated into revenues of about 2 million zł ($500,000), with the capital of about 5 million ($1.2 million). According to our analysis, developing forex in 2017 would need a capital increase to about 40 million zł ($10 million).”
In addition, the Polish Forex brokerage HFT Brokers stated that their Management Board found that the Forex offers are economically inefficient and contain the high risk of uncertainty in regards to its future performance. Moreover, the HFT Group SA, the holding company of HFT Brokers decided not to stick with its planned capital increase of the brokerage house.
What is next for HFT Brokers?
Reportedly, the HFT Brokers decided on changing the firm’s development strategy, as the new areas of activity and business expansion are about to be explored. Currently, the brokerage firm is planning to concentrate its efforts on other core areas of its business, which have been noted as very profitable last year.
The HFT Brokers’ agenda for the next two years includes the work with treasuries, equities, bonds, investment funds, private banking and custody services. The company is now in search for a new partner to acquire its Forex customer base.
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