With its first major public operational move since dissolving a sale to Playtech in November 2015, AvaTrade has announced that it has received financial regulation in South Africa. With the new financial license, AvaTrade is also opening up a regional office in Johannesburg. The office is its eleventh international office, and second in Africa to go along with one opened in Lagos, Nigeria in 2015.
Not known currently as a big player in South Africa, the local regulation and office is expected to provide AvaTrade greater ease for both marketing to and servicing customers. Under rules from South Africa’s Financial Services Board (FSB), broker partners such as affiliates and introducing brokers in South Africa are only allowed to refer clients to FSB licensed firms. As such, the new license will provide AvaTrade with the ability to actively onboard local partners.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
In this regard, an AvaTrade representative stated to Finance Magnates that heir “decision to enter the South African market was primarily based on demand from many clients and partners looking to work with a globally well regulated and trusted broker.”
In addition, according to AvaTrade, they believe the local office will help them boost their involvement in Greater Africa. Commenting on the South African license and Africa expansion, Daire Ferguson, AvaTrade CEO stated: “South Africa is a leading country on this vast continent to build & expand AvaTrade’s African experience from. AvaTrade is dedicated to its customers, providing them an innovative and trusted trading environment, and we are happy to extend our services to the African traders and will continue to expand in this important and exciting region”.
As part of the African expansion, the company representative added that the broker has plans to further increase their presence in the continent, with a second office set to open in Nigeria, this time in Abuja. Overall, it was stated that “AvaTrade firmly believes Africa as a whole is a fantastic region to do business and from a strategic expansion directive – anticipates future growth to emanate from this lucrative market.”