While the slump of European brokers continues, Australian companies are booming
If you were wondering how much the market is reacting to the changing regulatory landscape, some key data might hold an answer. The migration of the industry and many clients into Australia has been ongoing ever since we heard about the upcoming changes to EU regulations.
Listed companies such as CMC Markets, IG Group, and Plus500 have either issued profit warnings or published disappointing earnings. The low Volatility across the spectrum is further pushing EU-centric brokers to the brink.
The shifting regulatory landscape has been a part of the industry since its inception. While the geographical hot-spots have been shifting across the globe, the bread and butter for the industry in Europe has remained largely unchanged for over a decade. As we all know, product intervention powers managed to shake the ground for retail brokers.
All that said, one strictly supervised jurisdiction remains. The land down under has become a magnet for retail brokers in recent quarters as the companies anticipated the stark changes to their revenue model from ESMA’s action last August.
Australian Brokers Rise Visualized
Thanks to the Finance Magnates Intelligence Department we have a visualization of how much flow has migrated to Australia over the past year. A sample from some of the regional strongholds shows that the shifting regulatory landscape is affecting trader appetites materially. It’s been over a year since the first reports about EU clients opening accounts with AU brokers.
The theme we see is undoubtedly confirming the regulatory migration across the industry. Clients who have maintained their risk appetite have figured out a way to find what they need - leverage in a secure regulated environment.
While global monthly retail forex volumes were marked at around $5.5 trillion in Q1, this figure declined to as low as $4.6 trillion in Q3, only to rebound slightly towards the end of the year. In the meantime leading Australian brokers AxiTrader, ICMarkets and Pepperstone reported a consistent increase in their trading volumes throughout 2018.
As we see from the chart above, the total market share of Australian powerhouses on the global retail forex brokerage scene amounted to 12 percent at the beginning of the year and reached as high as 17 percent by the end of the fourth quarter of last year.
Client Flows
Australian brokers are not only benefitting from European clients choosing to migrate their accounts to a more leverage-friendly jurisdiction. They have also been attracting a global following from the rest of the world. The value of ASIC licenses has reportedly risen dramatically.
While the FCA has been a traditional go-to place for traders from all over the world, last year’s ESMA changes made the UK license less appealing to retail traders worldwide. Left with few alternatives except offshore brokers, the solid reputation of the Australian regulator played a role in the rise of local brokers.
Whether or not this trend continues for long, we don’t know. At present, the ASIC is asking locally-regulated companies if they intentionally target EU clients. While that might not be the case, the accessibility of high leverage for retail traders in Europe effectively hasn’t changed - they can always freely open an account with an Australian broker.
That said, product intervention powers are coming to Australia. As recently as in the fourth quarter of last year, a law which is looking to enable the regulator to limit some products for retail traders has been up for debate in the Australian parliament.
In the meantime, brokers in the land down under will continue welcoming all clients that they can accommodate legally, and European ones are most definitely lucrative for the industry.
If you were wondering how much the market is reacting to the changing regulatory landscape, some key data might hold an answer. The migration of the industry and many clients into Australia has been ongoing ever since we heard about the upcoming changes to EU regulations.
Listed companies such as CMC Markets, IG Group, and Plus500 have either issued profit warnings or published disappointing earnings. The low Volatility across the spectrum is further pushing EU-centric brokers to the brink.
The shifting regulatory landscape has been a part of the industry since its inception. While the geographical hot-spots have been shifting across the globe, the bread and butter for the industry in Europe has remained largely unchanged for over a decade. As we all know, product intervention powers managed to shake the ground for retail brokers.
All that said, one strictly supervised jurisdiction remains. The land down under has become a magnet for retail brokers in recent quarters as the companies anticipated the stark changes to their revenue model from ESMA’s action last August.
Australian Brokers Rise Visualized
Thanks to the Finance Magnates Intelligence Department we have a visualization of how much flow has migrated to Australia over the past year. A sample from some of the regional strongholds shows that the shifting regulatory landscape is affecting trader appetites materially. It’s been over a year since the first reports about EU clients opening accounts with AU brokers.
The theme we see is undoubtedly confirming the regulatory migration across the industry. Clients who have maintained their risk appetite have figured out a way to find what they need - leverage in a secure regulated environment.
While global monthly retail forex volumes were marked at around $5.5 trillion in Q1, this figure declined to as low as $4.6 trillion in Q3, only to rebound slightly towards the end of the year. In the meantime leading Australian brokers AxiTrader, ICMarkets and Pepperstone reported a consistent increase in their trading volumes throughout 2018.
As we see from the chart above, the total market share of Australian powerhouses on the global retail forex brokerage scene amounted to 12 percent at the beginning of the year and reached as high as 17 percent by the end of the fourth quarter of last year.
Client Flows
Australian brokers are not only benefitting from European clients choosing to migrate their accounts to a more leverage-friendly jurisdiction. They have also been attracting a global following from the rest of the world. The value of ASIC licenses has reportedly risen dramatically.
While the FCA has been a traditional go-to place for traders from all over the world, last year’s ESMA changes made the UK license less appealing to retail traders worldwide. Left with few alternatives except offshore brokers, the solid reputation of the Australian regulator played a role in the rise of local brokers.
Whether or not this trend continues for long, we don’t know. At present, the ASIC is asking locally-regulated companies if they intentionally target EU clients. While that might not be the case, the accessibility of high leverage for retail traders in Europe effectively hasn’t changed - they can always freely open an account with an Australian broker.
That said, product intervention powers are coming to Australia. As recently as in the fourth quarter of last year, a law which is looking to enable the regulator to limit some products for retail traders has been up for debate in the Australian parliament.
In the meantime, brokers in the land down under will continue welcoming all clients that they can accommodate legally, and European ones are most definitely lucrative for the industry.
CFI Obtains Regulatory Approval for South African Operations
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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