Fazzaco Weekly Digest: 31 Brokers' Client Account Profitability in May 2024; Prop Trading Setbacks from Match-Trade Technologies; Saxo Bank Division Merger

According to data compiled by Fazzaco from 31 major brokers worldwide, it was found that in May 2024, an average of 72.07% of customer accounts experienced losses, representing a slight monthly decrease in the winning rate of client accounts.

Despite this, brokers are still expanding their service territories. Last week, Apex Group appointed a new Global Head of Operational Transformation and opened a new office in Saudi Arabia. Similarly, Goldman Sachs established a regional headquarters in Saudi Arabia, becoming the first Wall Street investment bank to comply with the new regulations set by Saudi Arabia. 

Furthermore, a former executive from Admirals has joined the ranks of entrepreneurs and established a new FX trading company. 

The proprietary trading industry has faced new challenges since the MetaQuotes incident in February. Match-Trade Technologies reportedly terminated its license agreement with SurgeTrader, a U.S.-based proprietary trading company. As a result, SurgeTrader has been forced to suspend its acceptance of new customers.

In addition, several well-known financial services institutions, including JPMorgan Chase, N26, and Citi​, were penalized by regulatory agencies for various violations last week. These actions highlight the importance of compliance and regulatory adherence within the financial industry. 

Here are the related details, as well as some of the most read forex, crypto, fintech, and prop trading news pieces and articles from Fazzaco over the last week.

1. Fazzaco Reports: Client Account Profit/Loss Ratio of 31 Brokers in May 2024​

Fazzaco collected the data of profit/loss ratio of client accounts from 31 brokers in May 2023. The brokers we have in this month-on-month comparison remained the same as last month.

Among the 31 brokers this month, an average of 27.93% of client accounts achieved profits, while 72.07% of client accounts suffered losses. Compared with the average data in April 2024, the winning rate of client accounts decreased by 0.53%.

2. Apex Group Continues Its Global Operations Transformation with Key Strategic Hire

Apex Group, the global financial services provider, has appointed a new Global Head of Operational Transformation. Ken Fullerton will lead the Operational Delivery and Improvement team focusing on client-driven technology and business process initiatives and improvements. He will also oversee the Global Service Centres.

Based in New York, this key strategic role marks yet another milestone in Apex Group's mission to transform the financial services industry by driving growth with technology and people at its core.

3. Ex-Admirals Exec Bartosz Bielec Introduces New FX/CFD Trading Brand​

Bartosz Bielec, a Forex market veteran with nearly two decades of experience, has launched a new retail FX/CFD trading company named Prime Quotes. The company is also working on launching its own cryptocurrency trading exchange.

Prime Quotes is registered in the offshore jurisdiction of Saint Lucia and has obtained its initial license there. Just a month ago, the company became an authorized Financial Services Provider (FSP) with the Financial Sector Conduct Authority (FSCA) of South Africa, allowing it to expand its offerings on the continent. Prime Quotes has also recently received an Investment Dealer License from the Financial Services Commission of the Republic of Mauritius (FSC) and is preparing to enter the Asian market.

4. Prop Firm SurgeTrader's License Terminated by Match-Trade Technologies

Fazzaco learned that leading technology provider Match-Trade Technologies has terminated the Match-Trader license of Florida-based prop trading firm SurgeTrader. Previously, due to MetaQuotes' crackdown, a host of prop firms seeing the rival platform Match-Trader as safe haven, and switching their services to it.

Because of the termination, SurgeTrader has suspended the sale of new auditions until such time as the dispute with Match-Trader is resolved or until it is able to secure an alternative trading platform to migrate existing accounts to. The firm states that it is in full compliance.

5. Tickmill Integrates SoFinX's Copy Trading Platform​

Tickmill, a multi-regulated multi-asset broker, has reinforced its copy trading services with the integration of social trading platform SoFinX. This follows Tickmill's introduction of its own social trading platform, Tickmill Social Trading, in September 2023.

With the latest integration, Tickmill is aimed at providing users with a new and improved trading experience with new tools for experienced traders and investors.

6. Saxo Bank Merges Sales and SXO Divisions, Taps New Chief Commercial Officer

Saxo Bank, the Copenhagen-based online trading and investment specialist, has announced the merger of its Global Sales and Saxo Experience Office (SXO) into a new entity named Group Commercial. The merger aims to improve collaboration, streamline operations, and enhance client-centric initiatives.

Leading Group Commercial will be the new Chief Commercial Officer, Stig Christensen. Christensen joined Saxo Bank as CHRO in January 2016 and later took on the role of Chief Sales Officer before this move. Camilla Dahl Hansen, Chief Saxo Experience Officer, has decided to leave the company after three years and is preparing to move to the next level in her career. Hansen revealed on her LinkedIn yesterday, "My next role should ideally be c-level within corporates, including finance, private equity, or as an advisor."

7. J.P. Morgan Fined $200M by CFTC for Supervision Failures​

The Commodity Futures Trading Commission issued an order simultaneously filing and settling charges against J.P. Morgan Securities LLC, a registered futures commission merchant and swap dealer, for failing diligently to supervise its business as a CFTC registrant, resulting in J.P. Morgan failing to capture billions of orders in its surveillance systems.

J.P. Morgan admits the facts in the order in Sections II.C.2 (Scope of Surveillance Data Gaps) and 3 (Causes of Surveillance Data Gaps); acknowledges that its conduct in those sections violated the CFTC regulations; and otherwise neither admits nor denies the findings of fact.