Finance Magnates can confirm that traders in the US are about to get a fourth option when choosing a new forex broker. The parent company of XM.com, Trading Point Group, has applied for a retail forex license with the National Futures Association (NFA).
The move follows on that of another big brokerage company gaining access to the US market earlier this year. Back in February, IG Group launched its offering for American clients after getting a license to operate as a retail foreign exchange dealer.
Trading Point’s decision comes at a critical time for the US market, as it becomes more attractive for retail brokers amid tightening regulations elsewhere. Leveraging its experience and expertise in the market, the parent company of XM.com determined that there is a gap in the US market.
Commenting to Finance Magnates, the Trading Point Group CMO, Chris A. Zacharia said: “The management of the group believes there is an opportunity in the US market for more operators, however the decision to launch trading.com in the US was not based only on a static assessment of the market and what share of the market is satisfactory or not but on a more dynamic view of a market under development and evolution and the role we can play in enabling the market to grow.”
To remind our readers, after the post-Dodd Frank bill exodus for the industry in 2009, there are only three forex brokers operating in the country – IG Group, Forex.com, and OANDA.
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Over the years, XM.com grew significantly, leading the company to become one of the top to mid-tier market players globally. After succeeding globally with its leading brand, Trading Point Group decided to launch a new independent brand that provides customers a more user-friendly way to trade the markets.
“In a nutshell, Trading.com is a new brand which belongs to the Trading Point Group. Our goal is to build upon the experience and expertise we have gained over all these years with XM and launch a more simplified version of XM which has been designed with the needs of the millennial trader in mind,” Zacharia elaborated.
As the company awaits its license in the US, it is planning to do a soft launch in Europe to prepare its product for a wider audience. Trading.com features a newly designed trading suite which is much simpler and easier to use than traditional solutions in the forex space today.
In the meantime, Trading Point Group will continue to operate its successful XM brand. Trading.com will be run in parallel with different target markets and as a second brand with which the company strives to enter the US market and Western Europe.
“We will take the beta live in Western Europe on the 20th of July first as we prepare for the US market assuming that everything goes well with our pending application for a license. As pre-noted we consider this a clear soft launch in order for the new brand to go live and will be releasing new features step by step as time goes by,” Zacharia concluded.