CFDs Broker Admirals Sells Its Australian Unit

Estonia-based Admirals (previously Admiral Markets), a forex and contracts for differences (CFDs) broker, is selling its Australian subsidiary in an attempt to “optimise its geographic focus.” The broker further detailed that it had already entered into an agreement with a “non-related party” for the sale.

The Australian entity is a wholly owned subsidiary of Admirals Group AS, the Estonian group company that controls various entities operating the Admirals brand.

Streamlining Operations and “Profits”

The local Australian entity holds an operational license from the Australian Securities and Investment Commission (ASIC), which was obtained in 2011. This license enables it to offer retail trading services in the country.

Although the announcement did not detail much about the potential sale of the Aussie entity, it highlighted that the sale is expected to positively contribute to the group’s net profit and “streamline its operations in alignment with its core strategy.”

Meanwhile, the Estonian group managed to cut its operating expenses by 9 per cent in the first half of 2024. It also reported a 4 per cent increase in net trading income to EUR 22 million. However, it continued to turn a loss of EUR 1.2 million, which was an improvement from the previous year’s loss of EUR 4.8 million.

A Strategic Move

“This strategic move underscores Admirals Group AS’s commitment to delivering value by concentrating resources in key regions where it sees the strongest potential for growth and operational efficiency,” the official announcement about the sale of the Aussie entity noted.

Apart from Australia, the Admirals brand is regulated by agencies in Estonia, the United Kingdom, Cyprus, Jordan, South Africa, Canada, Kenya, and Seychelles.

However, the broker's Cyprus unit stopped onboarding new clients earlier this year, citing regulatory challenges. However, it confirmed to Finance Magnates that the move was “temporary and voluntary” and did not affect the existing clients.