Forex broker XTB has been granted a new operational license to operate in South Africa by the FSCA, the country’s financial markets regulator.
August 11, 2021, | AtoZ Markets – X-Trade Brokers, known by its trade name XTB, has been granted through its branch XTB MENA a received a license from the Financial Sector Conduct Authority (FSCA), the South African financial markets regulator to operate in the country.
According to the announcement made on Wednesday, the green light was given by the financial watchdog on August 10, 2021.
With the next step in the regulatory process, the subsidiary XTB Africa (Pty) Ltd will be expanding its offering to clients in South Africa. The Poland-based broker formed the local South African entity in 2018.
The new license came as a massive achievement on the part of the broker as it was in the process of receiving the license for more than the past two years.
XTB expands globally
Headquartered and listed in Poland, XTB holds multiple licenses from the European regulators: it is regulated in the United Kingdom, Poland, Spain, and Cyprus. It also holds a Belize license.
The authorization for the latest South African license came less than a month after the broker received another such regulatory approval, which was a much-sought category three license from the Dubai Financial Services Authority (DFSA). Both these licenses have been added as the Polish broker is aggressively pushing for international expansion.
South Africa is seen as one of the largest trading markets as demand for forex and CFDs trading is increasing rapidly there. This year alone, brokerage firms like Exness and Eurotrader secured licenses from the FSCA.
Read also: Top 10 Forex Brokers in South Africa
Meanwhile, XTB’s operating profit increased to $213 million, which is 3 times more than in 2019 despite the impact of the ongoing pandemic on the markets. However, as AtoZMarkets reported, the broker ended the second quarter of 2021 with a loss of PLN 23.8 million for the quarter after revenues dropped by 70%.
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