Finance Magnates learned on Friday that IC Markets’ Australian subsidiary would stop providing services to clients outside of Australia at the end of June.
In an email sent to clients, the retail broker said that regulatory developments meant that it would not be able to guarantee that it could provide its services to traders that aren’t based in Australia.
IC Markets is the third broker, regulated by the Australian Securities and Investments Commission (ASIC), that Finance Magnates has found will be ceasing providing services to non-Australian clients.
Heading to Seychelles
IC Markets will be doing the latter with its clients.
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In the email it sent to clients warning them about the upcoming changes, the broker said that it would automatically migrate non-Australian clients to True ECN Trading Ltd – the business name of IC Markets (SC).
As the name suggests, IC Markets (SC) is a subsidiary of the broker which is based in Seychelles.
Regulated by the Financial Services Authority of Seychelles, the broker can provide the same high leverage available to clients via its Australian entity.
“To make the transition [to IC Markets (SC)] smoother we have automated the migration process, it is completely seamless and will not affect your account balance, existing orders, open positions, trading history and client area login,” wrote the broker in its email to clients. “Post-migration you will be able to continue trading as usual.”
ASIC has been putting pressure on retail trading firms to stop doing business outside of Australia over the past couple of months. The regulator appears to be particularly concerned about brokers trying to access the Chinese market.
In April, the Australian parliament also handed ASIC product intervention powers that may mean we will soon be seeing leverage caps and marketing restrictions akin to those that now exist in Europe.