ACCM, a contracts-for-difference (CFD) broker that recently inked a sponsorship deal with a MotoGP team, revealed that it ended January with a trading volume of $285 billion, marking a record after an almost 33.5 per cent increase month on month and a 102.8 per cent rise year on year. Now, the broker plans to expand into the Middle East and North Africa (MENA) region and Europe within the next two years, FinanceMagnates.com has learned.
The broker also added 5,748 new accounts last month, pushing the total number of active traders on the platform to around 70,000.
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Gold Shines for Traders
The record trading volume came as brokers across the industry witnessed a significant jump in gold trading demand amid the yellow metal’s aggressive rally. ACCM also confirmed that gold trading accounted for over 67 per cent of its total January volume, while silver trading made up 4.26 per cent.
Although the gold rally accelerated last month before a Friday dip, it has been climbing for almost six months.
ACCM revealed that almost 80 per cent of its increased trading volume over the past two months came from gold and silver, with gold contributing the majority share.
The broker’s CEO, Tien Ching, also acknowledged traders’ shift towards commodities from other asset classes: “Especially amid current geopolitical tensions and global trade conditions, coupled with the perception that US interest rates are still heading downward, we are seeing more traders move into opportunities in both gold and silver over the past months, driven by FOMO."
“Overall, this is in line with the market’s outlook for metals to maintain strong upward momentum, albeit with high price volatility in the short term.”
Although the gold rally pushed trading volume higher across the brokerage industry, B-book-heavy firms faced a critical challenge amid the continued rally last month. Many brokers tightened their trading conditions, primarily by limiting leverage and increasing margin requirements.
Read more: Volatile Gold Makes Brokers' Risks No Longer Around P&L, but About Balance-Sheet Protection
“I am of the view that the current market conditions pose significant challenges for most brokers,” Ching added. “Even STP brokers are advised to pay close attention to trade position management and risk control.”
Another Broker Eyeing MENA
ACCM holds regulatory licences in Australia and South Africa, but most of its business is conducted under offshore licences in Seychelles and Vanuatu. According to Similarweb data, most of the brokerage’s website traffic comes from Vietnam and Thailand.
Its latest multi-year sponsorship deal with the Prima Pramac Yamaha MotoGP team also signals its intention to promote the brand globally.
Meanwhile, the broker’s expansion plans also appear strategic. It is targeting MENA at a time when dozens of other brokers have established operations in Dubai over the past few years. Traders in the region are widely viewed as highly attractive.
Europe, however, remains an interesting jurisdiction, as several established players have exited the retail market there. Despite this, new entrants continue to emerge.
Interestingly, despite the growing popularity of the UAE, almost 23 per cent of open roles among the top 50 CFD brokers are based in Cyprus, while only 6 per cent are located in the UAE.
