CXM Group, the multi-asset trading group founded in 2015, has agreed to acquire Johannesburg-headquartered TD Markets, Finance Magnates has learned exclusively. The financial details of the deal, however, were not disclosed.
Despite the acquisition, TD Markets will keep its brand, leadership team and FSCA licence. South African clients will remain with its local unit, so their accounts, funds and regulator will not change.
Agreements with introducing brokers and partners will also remain with TD Markets.
“Our priority throughout this process was finding the right long-term partner for our clients and our team,” said Amar Ramith, CEO of TD Markets, who will continue in the role. He added that clients “will see the same TD Markets, with more behind it.”
London's trading industry is coming home!
CXM Bolstering Its South Africa Presence
TD Markets was also founded in 2015 and serves more than 50,000 active clients across Africa. It operates in South Africa under a Financial Services Provider licence from the local regulator.
The deal gives CXM a regulated entity in South Africa. CXM’s existing licences are in the Seychelles, Mauritius, the UAE and Cambodia.
Read more: FxPro Sells EU Clients to Capital.com as a “Strategic Optimisation, Not a Retreat”
“We are not here to change what clients value,” said Andrei Alekseev, CMO at CXM Group. “We are here to invest in it: in liquidity, in technology and in people on the ground in Johannesburg.”
CXM said that, following completion, it and TD Markets plan to bring 24/7 gold trading, TradingView connectivity and CXM’s liquidity and execution infrastructure to South African clients.
CXM launched 24/7 gold trading and connected its trading accounts to TradingView earlier this year. This particular product also appears to be in great demand among retail brokers. XM launched GOLD24-7, which allows clients to trade the metal seven days a week, and CMC Markets introduced weekend gold trading in April. STARTRADER has also launched 24/7 trading for gold CFDs.
TD Markets partners will gain access to CXM’s international partnership programme, and CXM plans to invest in the Johannesburg team as a base for further expansion across Africa.
- Investec to Offer IG’s Trading Platform in South Africa Under Its Own Brand
- Too Expensive to Stay? South Africa's ODP Requirements Are Pushing Away Foreign Brokers
- South Africa Fines QuickTrade in Widening AML Sweep That Has Hit Multiple CFD Brokers
Licence Deals in South Africa
The deal follows similar moves by other brokers that have entered South Africa through the FSCA. ACY Securities acquired Ingot Brokers South Africa to obtain an FSCA licence. Finance Magnates also reported that Mitrade bought an FSCA-regulated firm as part of its expansion push.
Exness is another big name to establish a local presence in South Africa.
However, South Africa’s over-the-counter derivatives provider (ODP) licensing regime has proved very challenging for international brokers. The high operational costs have pushed many big names out of the country, while several have even withdrawn their licence applications while still in the process.
