Two of the three founders of CashBackForex.com, the largest forex rebate site on the web, today announced they would begin beta testing of a new brokerage they have been developing for several years now. The brokerage, Excel Markets is a product of Global Brokers NZ Ltd. and is headquartered in New Zealand but has service operations located around the world, with its largest service office of about 25 employees in Cork, Ireland. GBL has become an Authorized Futures Dealer regulated by the New Zealand Financial Markets Authority, the primary regulator of derivative products in New Zealand. GBL was formerly licensed by the NZX, before being purchased in October of 2011 by 2 of the founders of CashBackForex. GBL is mandated by the FMA to hold minimum net capital of $1M, segregate client funds, and submit to independent audits of financials and daily surplus liquid net capital reports, among many other requirements. Excel Markets, also owned by the 2 founders of CashBackForex, is the introducing party responsible for marketing and bringing retail clients to the GBL operation.
Legal Risk Factor Beneath Ripple’s Lawsuit from SECGo to article >>
In terms of the relationship of Excel Markets to Cash Back Forex, Excel will simply be one more broker added to the mix. The founders have stated “We have zero intention of cannibalizing the popular CashBackForex product by consolidating accounts into our own brokerage, furthermore there is a third shareholder of CashBack that does not participate in Excel Markets thus such a consolidation would be completely unfair”. The founders see the greatest benefit arising from diversification of trading accounts held by many different brokers and are not interested in undermining the CashBack product that is so popular it has attracted over 30,000 live accounts.
This is not unprecedented in the market as ZuluTrade has launched its own brokerage called AAAFX which seems to be doing quite well alongside other broker clients.
As a broker servicing global clientele and not regulated in the United States, GBL will not be accepting clients from the US, however, a project is in the works to bring US traders an Excel branded version of the Alpari (US) product that is extremely competitive with existing firms in the US.