Where Do Loyal Middle Eastern Alparites Trade?
Alpari’s Dubai office has been one of the best performing units in the group with strong capital inflows over the
With padlocks on the doors of Alpari UK, where do loyal fans of the leading forex brand trade? Forex magnates is assessing the current situation of one of the region’s most powerful players. Does brand Alpari MENA react, or close its doors to a whopping $90 odd million of annual client deposits?
The current standings of Alpari UK are unfortunate, not only for existing traders who are stranded at the airport without a pilot, plane and timetable in sight, but more so for the eager derivatives trader who has learnt to love the brand.
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Alpari is a household name for the vast Middle Eastern forex trading community. Since ticking the right boxes as a flexible and forward-thinking broker, Alpari has positioned itself as the go-to provider for the speculative investor. The brand is present across the mainstream media, however, the firm took smart marketing to a whole new level as it targets the distinct affluent Middle Eastern trader, with a lot of money. An example of the firm’s creativity is a first for the sector, Alpari’s adverts can be seen at 39,000 feet altitude on Emirates Airlines entertainment systems.
So where now for traders who were facilitated by the Dubai office et al? With a substantial client base, but no broker to work with, the office has a few viable options, on the one hand there is Alpari Group, however, without sound regulation Middle Eastern traders would be sceptical to park their funds in Russia. Then there’s FXTM, a regulated alternative that is owned by one of the shareholders of Alpari UK and Alpari Group, or could it be an outsider, which has an exclusive relationship with the firm?
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Either way, the firm needs to act fast as not only is the current volatility a positive driver of activity, the current lows in the energy markets are attractive to traders in the region that produces the world’s most oil.
Forex Magnates’ research shows that Alpari has the highest market share in the region, with significant deposits thus reflecting the high net worth nature of the GCC. The firm is believed to have bagged around $90 million in client funds in 2013, with 2014 not being far off with a 6-8% drop which is understandable during a low volatile operating environment. Alpari’s success in the region can be attributed to two industry veterans, the current CEO Mohamed Al Ahmed and the former CEO Iskandar Najjar, the two have outperformed more established players in the region through their business development techniques.
Alpari DMCC, the UAE registered firm offers traders access to local commodity derivatives markets traded on the emerging DGCX trading venue. Alpari DMCC is owned by the Alpari Group, and its business as usual for the firm offering listed financial derivatives. The firm was unavailable for comment.
The Middle East continues to attract global forex providers, earlier this week, IronFX reported that it had received authorisation under the DFSA.
Are people in the Middle East aware of what happened to Alpari UK and Alpari JP?
Has ForexMagnates contacted Dubai regulator for comments on any pending action on Alpari Dubai?
I cannot see investors KNOWINGLY standing by idle with their funds in a broker like this. If you are able to interview with some of there existing clients, that would be helpful to get an idea of why they choose to stay if they do. And if they left who would they likely choose?
In UAE today there are 2 regulated companies where clients can go and open accounts. They are regulated by the central bank: Noor Capital which is a parter of BMFN and ADS Securities. The rest are rep offices of foreing brokers, like was Alpari.
I researched Alpari Dubai http://www.alparidgcx.ae/ and they don’t appear to have their own license. They are a broker-member of the Dubai G&C Exchange. The Exchange itself is regulated. So what does Alpari actually do in Dubai? How are they taking funds without a license? Perhaps I missed something.
http://www.dfsa.ae/PublicReqister/AllFirms.aspx
@Wasim or FM, if you are a rep office for a foreign broker, do you still need to be licensed locally in Dubai? Similar to the CFTC or ASIC?
Alpari DMCC offers domestic products but was also facilitating forex clients who would open accounts in the UK.
In UAE there's 3 different types of registration
DFSA
Central Bank
ESCA
As a local broker they only accept money for DGCX trading all fx was done in UK
@Jon all MENA clients of Alpari are aware of what's happening and announncments are made in Arabic as well in English. This being said, we can't deny the fact that middle eastern clients are by nature care about relationships and that keep them close to their accounts personal associates.
That is certainly a possibility Matthew, we all know that the market tanks the second it becomes overcrowded and all “solid fundamentals” are thrown to hell in a matter of a couple of days… Mind you, in these high-frequency times, maybe in a couple of minutes!
That is certainly a possibility Matthew, we all know that the market tanks the second it becomes overcrowded and all “solid fundamentals” are thrown to hell in a matter of a couple of days… Mind you, in these high-frequency times, maybe in a couple of minutes!
They are dead. They have no licence and the business wasn’t as successfull as Adil Siddiqui said.
Alpari ME is only licensed through DMCC & DGCX just to cover their self and the registration name is under their CEO there.
Alpari UK & Me is dead as John said.