Online retail foreign exchange and CFD brokerage Plus500 (LON:PLUS) is adding a new regulatory license to its portfolio. The company has been approved as a financial services provider in South Africa by the Financial Services Board (FSB) which is responsible for overseeing the non-banking sector of the financial industry.
The news comes after the firm was recently awarded authorization in Israel and New Zealand. The South African market is one of the fastest growing regions in the world and as such is a relatively underdeveloped market.
Over the past couple of years several brokerages have been awarded a license to operate in the country. Plus500’s entrance into the market could put the on-boarding and marketing strategies of other brokerages who have an established presence in the country to the test.
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Commenting on the announcement, the CEO of Plus500, Asaf Elimelech, said: “This license acquisition is in line with our strategy, stated in our preliminary results this week, to add new licenses in order to expand our customer base globally and diversify our geographical revenues.”
“This licence also complements our recent sponsorship of Plus500 Brumbies, who as part of the international Super Rugby competition, play teams based in Australia, South Africa, New Zealand, Argentina and Japan.”
The license is effective immediately and has no time limitations associated with it.
Earlier this week, Plus500 reported a record setting 2016, with decreasing costs in the fourth quarter. The main aspect of the change could be favorable market conditions that are associated with higher volatility in the aftermath of the election of Donald Trump.