Retail broker RoboMarkets told Finance Magnates on Thursday that it has become the latest broker to receive a license from regulatory authorities in Labuan.
The news means that the group’s Asian entity will be able to provide trading services in contracts for difference (CFDs) and foreign exchange.
A part of Malaysia, Labuan is made up of a series of small islands situated just north of Brunei.
The territory has its own financial watchdog and, with a less restrictive set of regulatory policies for the retail trading industry, it is fast becoming a hub for brokers that want to operate in Asia.
RoboMarkets will be opening an office in Labuan now that it has received a license there. The broker already has a marketing office in Shah Alam – a large city in mainland Malaysia that is close to Kuala Lumpur.
“Malaysia is one of the most dynamically developing countries in South-East Asia with a population of many millions,” said Rostyslav Prus, CEO at RoboMarkets Asia.
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“It’s a country that offers a lot of advantages for brokerage activities, and it is backed by sound economic fundamentals with promising prospects.”
With its new license, the RoboMarkets group is now regulated in four different jurisdictions.
Aside from Malaysia, the broker has a license from Cypriot authorities and another in Belize. The company also received a license from the National Bank of the Republic of Belarus in May of this year.
An executive at the broker told Finance Magnates in May that the different licenses are used to target different regions. The Belarus license, for example, is used to attract clients from countries in the Commonwealth of Independent States.
“The goal of RoboMarkets Asia is to provide quality financial services for Asian traders to enter the global FX and CFD markets and do our best to deliver excellent trading experience to our clients,” added Prus.