Forex Magnates has learned from a number of independent sources involved in the FX industry in Cyprus that FCA regulated CFD broker, Plus500, is looking to hire extensively in Cyprus. Such a step may imply the firm is either in the process of opening a local service office there or that it might be preparing to launch a separate entity with a full-fledged regulation CySEC license.
Cyprus is a Forex industry hub with an established regulatory framework allowing financial firms to accept clients from across the European Union thanks to the MiFID “passporting” agreement, and with a large workforce experienced in the retail FX trading business which has made it an ideal jurisdiction for many brokers to set up shop in. Plus500 however, has so far avoided opening an office in the country and has relied on its FCA license to attract European clients.
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Speaking with Forex Magnates, the brokerage’s Head of Investor Relations, Elad Even-Chen, said that as a large international company Plus500 is always looking to expand and grow in new markets. Therefore, after having announced its plans in the past to extend its reach to new countries in Asia and Europe, the company is constantly exploring its options in Asia and Europe, but no hiring has yet taken effect in Cyprus.
Plus500’s clients are primarily from the UK market, as the company is headquartered in London and its shares are listed on the London Stock Exchange AIM. If Plus500 chooses to open an office in Cyprus in the future, it can keep operating under its same FCA license. Obtaining a CySEC licence would be counter to the current trend of brokers leaving CySEC for FCA regulation, as the British license has a better brand value.