Breaking: XTB Suspends its Plans to Leave Turkish Market

Polish FX brokerage XTB today suspended its plans to cease operations in Turkey until the end of the first half of 2018, as the listed company expects Turkey’s authorities to retreat from a number of limits to the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term business that were introduced earlier this year.

XTB’s decision builds on advice given by a law firm operating on the Turkish market. Earlier in February, the CBM introduced amendments in leveraged forex trading transactions. The board brought a minimum margin of TL 50,000 (USD13,840) and the leverage was rearranged as 10:1. Previously, before the amendment, it was 100:1.

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XTB stated earlier that it expects that the CMB initiative will significantly reduce overall activity in Turkish retail Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term. It also said that these drastic changes to the regulatory structure have contributed to a considerable decline in the number of customers and consequently to a significant reduction in the activity of XTB Group in Turkey.

XTB’s decision to withdraw from this market was also based on the recent economic and political situation in Turkey which, in the company’s opinion, has also affected the business environment and triggered uncertainty in this market.

According to information from the XTB website, the decision to shut down its Turkish subsidiary will affect the current financial situation. Specifically, it will require that the value of the shares of its Turkish unit be written off, which equal PLN 9.7 million ($2.55 million).

Furthermore, the company has intended to separately create another write-off of the value of its intangible assets to reflect the shutdown of its brokerage activities license in Turkey. This amounts to approximately PLN 5.6 million ($1.47 million).