Cyprus Broker Alfa-Forex to Cease Retail Trading Offering
- The decision follows Alfa Capital's shift in focus to institutional investors.
Alfa-Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, an Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term provider of foreign exchange (forex), announced on Wednesday that, it would no longer be offering its services to individual clients and other users which are categorized as “retail” under MiFID, from the end of June 2019.
Alfa-Forex is the trading name and brand of Alfa Capital Holdings (Cyprus) Limited (Alfa Capital). According to the statement, the news is driven by Alfa Capital’s decision to focus on its institutional business.
Specifically, Alfa Capital has made the strategic decision to focus on providing “premium trading services” on forex and related products to institutional market participants through its existing trading platforms.
“All other business lines and products of Alfa Capital Holdings (Cyprus) Limited are not affected by the decision relating to the brand Alfa-Forex. Affected clients will be contacted in due course,” the statement from the company on Wednesday said.
ESMA Regulations Hurt Retail FX Brokers
Alfa-Forex’s announcement comes at a time when the regulatory environment for retail trading providers is becoming increasingly difficult. As Finance Magnates has reported extensively, in the European Union, financial regulator ESMA (European Securities and Markets Authority) implemented a suite of restrictions for retail trading products.
For contracts for differences (CFDs) on major FX pairs, a leverage cap of 30:1 is now in force for retail clients. Indices, non-major currency pairs, and gold have leverage restriction of 20:1, while other commodities and non-major indices can be provided with a 10:1 gearing. Furthermore, the restrictions also prohibit certain sales and marketing practices.
Although the new regulations from ESMA are only temporary, the regulator continues to renew the restrictions and can do so for as long as it sees fit. Only yesterday, the European watchdog announced that it was renewing its product intervention measures for CFDs.
As Finance Magnates outlined, this new renewal will go live at the beginning of May, taking us through to the end of August this year. This means that the product intervention measures have been in place for twelve months.
Alfa-Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, an Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term provider of foreign exchange (forex), announced on Wednesday that, it would no longer be offering its services to individual clients and other users which are categorized as “retail” under MiFID, from the end of June 2019.
Alfa-Forex is the trading name and brand of Alfa Capital Holdings (Cyprus) Limited (Alfa Capital). According to the statement, the news is driven by Alfa Capital’s decision to focus on its institutional business.
Specifically, Alfa Capital has made the strategic decision to focus on providing “premium trading services” on forex and related products to institutional market participants through its existing trading platforms.
“All other business lines and products of Alfa Capital Holdings (Cyprus) Limited are not affected by the decision relating to the brand Alfa-Forex. Affected clients will be contacted in due course,” the statement from the company on Wednesday said.
ESMA Regulations Hurt Retail FX Brokers
Alfa-Forex’s announcement comes at a time when the regulatory environment for retail trading providers is becoming increasingly difficult. As Finance Magnates has reported extensively, in the European Union, financial regulator ESMA (European Securities and Markets Authority) implemented a suite of restrictions for retail trading products.
For contracts for differences (CFDs) on major FX pairs, a leverage cap of 30:1 is now in force for retail clients. Indices, non-major currency pairs, and gold have leverage restriction of 20:1, while other commodities and non-major indices can be provided with a 10:1 gearing. Furthermore, the restrictions also prohibit certain sales and marketing practices.
Although the new regulations from ESMA are only temporary, the regulator continues to renew the restrictions and can do so for as long as it sees fit. Only yesterday, the European watchdog announced that it was renewing its product intervention measures for CFDs.
As Finance Magnates outlined, this new renewal will go live at the beginning of May, taking us through to the end of August this year. This means that the product intervention measures have been in place for twelve months.