Fazzaco Weekly Digest: M4Markets Exec Departs; FSCA Publishes 2023 Regulation Plan; Reasons Why Forex Brokers Reject US Traders

Last week, executives at a number of forex trading firms revealed their own personal updates. Two business development executives at M4Markets, Nick Jay and Alexandra Dinu​, announced their departure. Several Exness executives, including Katina Messinis​, Acting Head of Institutional Sales, and Stanislav Bublik, Head of Trading Products, moved to other financial services companies. Meanwhile, Ash Elgarf and Dan Benton​ also joined LCG from ADSS.

In addition, quite a few brokers announced their global expansion. Last week, Trade Nation received an offshore license granted by the Financial Services Authority of Seychelles. Anzo Capital completed the acquisition of JJ Card Group, a UK broker, entering the UK market. Webull also expanded its operations into the UK, stepping into European market.

In terms of regulation, the FSCA in South Africa published its 2023 Regulation Plan to build and improve regulatory frameworks to optimize the market environment for the financial services and crypto sectors. However, the United States, the world's financial centre with its volatile markets and stringent regulatory requirements, has shut out many brokers and crypto firms, Fazzaco analyzed the reasons behind this. 

Here are the related details, as well as some of the most read forex news pieces and articles from Fazzaco over the past week.

1. Listen to the Article: Locked Out - The Surprising Reasons Why Most Forex Brokers Reject US Traders​

The retail forex trading market is crowded with brokers. Apart from a handful of big-name brokers, whether it is ActivTrades, Exness, CMC Markets, Tickmill and other familiar brands, or many lesser-known small brokers, they all share one thing in common: they are not accepting (or at least have not explicitly stated that they do accept) US clients.

Why are US traders snubbed by forex brokers? Many of us in this line of business know that the forex market operates 24 hours a day because we have a network of trading centers around the world, among which New York in the United States is a vital hub. In fact, the US financial industry has a huge sway over exchange rate movements. The Fed's policy tweaks also trigger shocks to all global markets, including the forex market.

However, most of the retail brokers have shut their doors to US traders. Today we will explore the reasons behind this.

2. FSCA Publishes 2023 Regulation Plan to Boost Financial Sector

Financial Sector Conduct Authority (FSCA) in South Africa published its 2023 Regulation Plan, outlining the regulator's plan for regulating the financial sector from April 1, 2023 to March 31, 2026.

The plan includes information on the FSCA's priorities, projects, and timelines for the next three years, as well as updates on projects from the previous year. The document also discusses the FSCA's approach to prioritization and the factors that inform its decision-making.

3. Plus500 Continues Strong Performance in H1 2023 with 15% Increase in Revenue​

Plus500, a global multi-asset fintech group operating technology-based trading platforms, released its trading update for the first half of the year ended June 30, 2023 (H1 2023), showing an increase of 15% in Revenue during the period compared to H2 2022.

EBITDA reached $174.1 million, an increase of 17% compared to $148.5 million in H2 2022. EBITDA margin was 47%, comparing to 46% in H2 2022.

4. M4Markets Chief Business Development Officer Nick Jay Departs

Nick Jay shared today on LinkedIn that he has resigned from M4Markets, a multi-regulated global online broker, as Chief Business Development Officer. He spent almost three years at the company.

Currently, Nick is looking for new projects or vacancies which may be suitable for him.

5. Why IB/Affiliate Management Platforms Are More Important Than You Think​

Panda has noticed that there's a gap in the information available online about IB/Affiliate marketing. A lot of the stuff you'll find online focuses on how affiliate or introducer broker relationships work in the online FX/CFD space. So, there's a great deal of wordcount dedicated to explaining how referral links work, for example, or detailed breakdowns of different remuneration models.

That's all well and good, it's important to understand the difference between CPA (cost per acquisition) and CPL (cost per lead), or between revenue sharing and hybrid models. However, you won't find much discussion about the actual backbone of these arrangements; how the software you choose to manage IB/affiliate relationships can determine whether it becomes a lucrative and dependable revenue stream, or whether it ends up being more trouble than it's worth.

6. Trade Nation Obtains New Offore License in Seychelles

Trade Nation, a regulated platform for CFD and spread trading, has received a new offshore license granted by the Financial Services Authority of Seychelles, marking an important step for the growth of the broker.

With the new license, Trade Nation further grows its global presence, and provides more opportunities for expanding its customer base, especially Asia.

7. Anzo Capital Completes Acquisition of JJ Card Group to Expand UK Presence​

Anzo Capital, a multi-regulated Forex and CFDs broker, has completed the acquisition of JJ Card Group, a British online broker for professional and institutional clients, further expanding its global presence.

Upon the acquisition, JJ Card Group will be rebranded to ANZOGLOBAL LLP as part of the global expansion of Anzo Capital. Clients of the former JJ Card Group will be transferred to ANZOGLOBAL LLP, where they will continue to enjoy FCA-regulated trading and services. Meanwhile, Anzo Capital's customers will be able to open accounts and trade under FCA's regulation.