ThinkMarkets, a financial broker with operations in the United Kingdom and Australia, announced this week that it has entered into South Africa to offer foreign exchange (forex) and contracts-for-difference (CFD) trading.
Specifically, the broker will offer both South African and international products, such as single-stock CFDs, stock indices, currencies, and commodities via its trading platform.
In terms of currencies, the broker offers South African rand (ZAR) based currency pairs such as USD/ZAR, GBP/ZAR and EUR/ZAR in addition, in the future it plans to offer CFD indices and equity derivatives that will be traded by investors on the Johannesburg Stock Exchange.
As part of its offering to South African traders, ThinkMarkets revealed that it would offer capital protection on funds of $1 million (over ZAR 14.4 million) for traders on its platform. This means, should ThinkMarkets.com go into insolvency, traders in South Africa will have a $1 million protection on their monies, the statement said.
The Rising Star of the DeFi Project, GIBXSwap, Passes CertiK Security AuditGo to article >>
Commenting on the announcement, Nauman Anees, the CEO and Co-founder of Think Markets said: “Our company’s ethos is built on sound regulations and the protection of our clients’ money and hence the $1 million cover reinforces that ThinkMarkets is one of the safest places for CFD traders.”
ThinkMarkets Clients are Also Protected by Lloyds of London’s Central Fund
According to the statement, ThinkMarkets is the first trading provider in South Africa to offer this type of protection on funds invested in CFDs. The insurance is underwritten by Lloyds of London.
ThinkMarkets’ South African clients will also have a second layer of protection – Lloyds of London’s Central Fund. This means, should both ThinkMarkets and the insurance broker default, Lloyds of London will compensate clients under its Central Fund.
“We are very excited about our new operation in South Africa, we have been serving traders from this region for many years and have built strong and lasting relationships. And now, with the $1 million insurance and localised products on our platform, we are well positioned to become the preferred broker for traders,” added Faizan Anees, Co-founder and Managing Director.