Monaxa, a relatively new contracts for differences (CFDs) broker, is moving from offshore to onshore. It has obtained a South African licence and is now planning to apply for MiFID II authorisation.
A Shift from Offshore to Onshore
“Monaxa has recently been approved for our South African licence,” the broker’s CEO, Chris Trikomitis, noted in a LinkedIn post, adding: “We will progress with our European entity.”
However, it remains unclear if the broker will seek the MiFID II licence from Cyprus, home to many other CFDs brokers, or will approach some other European jurisdiction.
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The broker currently offers services with a Mauritius licence. It is also registered in Anguilla, a British Overseas Territory in the Eastern Caribbean.
Apart from the licences, Monaxa is also expanding its products and offerings. The broker recently added a PAMM (Percentage Allocation Management Module) system and crypto trading to its suite.
It has also joined a wave of other CFD brokers that have decided to enter the prop trading space. However, those services have yet to be launched.
Many Have Left Europe, but South Africa Is Attractive
While Monaxa seeks to enter Europe, several established brands have left the continent entirely or exited the retail space in the European bloc. BDSwiss, which surrendered its Cyprus licence, is a major brand that now operates entirely with offshore licences. Meanwhile, others such as Exness and RoboMarkets no longer cater to retail European traders but only offer services to institutions.
Read more: What Do Exness, IronFX, FXTM, and RoboMarkets Have in Common?
South Africa is also becoming a significant market for retail CFD brokers. Brokers such as Tickmill, Exness, and Scope Markets are already operating locally in South Africa. Firms including CFI and XS obtained operational licences in the country last year.
However, IG Group exited the South African market earlier this year, calling the move a “difficult decision” but without revealing any specific reasons.
