Capital.com has officially entered South Africa by obtaining two local licences: an Over-the-Counter Derivatives Provider (ODP) licence and a Category 1 Financial Services Provider (FSP) authorisation.
Finance Magnates earlier reported that the broker had applied for a South African licence.
The ODP licence allows the broker to operate as a market maker, while the lower-tier FSP licence is for marketing and promotional activities.
Capital.com’s Aggressive Expansion Push
This is also part of the broker’s global expansion push. It has applied for regulatory licences in Japan and Turkey, while hiring local CEOs in Brazil and Chile, signalling expansion into those countries. It also appears to be establishing local presences in Bahrain and Azerbaijan.
Although Capital.com has not publicly revealed its global expansion plans, job postings show that it is also looking to secure a licence in Singapore.
South Africa is its second location in continental Africa, as the broker recently received a local licence in Kenya. In addition to these countries, the brokerage giant is regulated in the UK, Cyprus, Australia, the Bahamas, and the UAE.
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An Experienced Local CEO to Head Operations
To steer its South African operations, Capital.com has also appointed Travis Robson as its local CEO. Robson, who appears to have joined the broker last year, previously oversaw Trive’s operations as CEO for Africa and the Middle East. His most notable experience, however, comes from his long tenure at IG, where he left as the CEO of its UAE operations.
“Our role is to ensure clients engage with markets within a framework that is governed, supervised, and designed to prioritise clarity around risk,” Robson said.
Although Capital.com stressed that it plans to onboard South African clients locally, it did not provide a timeline.
Interestingly, IG Group wrapped up its operations in South Africa last year and eventually closed its local presence.
