Breaking: FXTM Acquires New Regulatory License in Mauritius

Retail foreign exchange broker FXTM announced on Friday that is had obtained a license from the Financial Services Commission (FSC) in Mauritius.

FXTM already has regulatory licenses from the Financial Conduct Authority, the Cyprus Securities and Exchange Commission and the South African Financial Sector Conduct Authority.

“Mauritius is fast becoming an internationally recognised financial supervisor with a strong legal framework, providing protection to the public in non-banking financial products,” an FXTM spokesperson said.

“International customers will now have the opportunity to receive services through [the newly regulated entity]. Clients will continue to enjoy the same great service they have come to expect from FXTM.”

Fleeing Europe's low Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term for offshore

The move by FXTM, which is headed up by Alpari co-founder Andrey Dashin, comes after several European brokers reported a lengthy period of declining trading volumes. Low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term aside, that decline in volumes stems from the European Securities and Markets Authority’s decision to cap leverage in August of last year.

Those leverage caps, where were part of a wider set of fresh regulatory strictures, have forced many firms to look to new jurisdictions, outside of Europe, for regulatory licenses. In the past year, we have seen firms getting licenses in, amongst other places, South Africa and the Bahamas so that they continue providing high leverage to their clients.

Mauritius has also emerged as an interesting regulatory jurisdiction for brokerages. Unlike some of the less savory options available to firms, Vanuatu comes to mind, the island nation has a competent financial regulator and provides access to banking solutions which meet the needs of brokerages.