Weekly Brief: South Africa Curbs FX Signals, Germany to Repeal CFD Tax Law, and More

South Africa's Trading Signal Providers Must Be Licensed

In its first-ever administrative action, South Africa’s Financial Sector Conduct Authority (FSCA) imposed an administrative penalty of over 1 million rands (about US$57,000) on an individual for providing forex trading signals without a financial services provider license and also debarred him for ten years.

The regulator clarified that “the practice of providing or publishing signals with reference to online trading in financial products falls within the definition of financial services in the FAIS Act, and as such, persons providing such signals require a financial services provider license.”

Cyprus' Compliance and Legal Heads Earn Six Figures

Cyprus has a massive retail trading industry, which is locally termed “forex” (although it is technically much more than trading forex instruments). Thus, the island has a significant demand for trading and execution roles. According to the latest survey, senior Trade/Dealing Room Managers make up to €95,000, while the junior levels receive a minimum of €20,000.

Traders/Dealers of contracts for differences (CFDs) instruments also earn up to €84,000, compared to €54,000 for similar roles in other instruments. The data is based on a survey of 550 employees working in the fintech, tech, financial services, and iGaming sectors in Cyprus. It also combined insights from Emerald Zebra’s talent pool of about 20,000 screened candidates, job advertisement data, and placement data.

German Lawmakers to Repeal Punitive CFD Tax Rule

In Germany, lawmakers are planning to repeal a punitive tax rule on CFDs. The country’s ruling coalition is set to repeal a regulation that restricts traders from offsetting losses against profits up to a certain limit. The €20,000 loss offset limit impacted the tax liabilities of CFD brokers.

This decision could reportedly mean substantial refunds for those affected, finally allowing traders to fully offset their losses against gains from past years. The controversial €20,000 loss offset limit was introduced as part of Germany’s annual tax laws.

CFI Sets Up Third Office in Sharjah

CFI Financial Markets LLC expanded its operations by opening a new office in Sharjah. This is the third office the company has established in the United Arab Emirates, following locations in Dubai and Abu Dhabi. CFI UAE operates under a Category One license from the UAE's Securities and Commodities Authority (SCA).

"Our expansion in Sharjah highlights our mission to bring innovative and seamless trading experiences to every corner of the UAE," said Jareer Hiary, CEO of CFI UAE.

Interactive Brokers Opens Office in Dubai

Interactive Brokers opened its new office in Dubai International Financial Center. The company expects this move to enable it to open access to global markets for traders and investors in the UAE and across the Gulf Cooperation Council region.

Interactive Brokers' decision to establish a presence in the Middle East reportedly comes amid a surging demand for financial services in the region. The DIFC office will serve a broad range of clients, including active traders, high-net-worth individuals, hedge funds, and family offices.

Tavira Financial Pulls Out of CFD Business

UK-regulated Tavira Financial Limited, known for being an agency broker and execution specialist, is closing down its equities contracts for difference CFD business, according to the latest Companies House filing. The company reportedly completed the majority of its closure process during the 2023-2024 fiscal year and will finish the remainder in the ongoing fiscal year.

Tavira hired Andrew Gibson, an industry veteran with three decades of experience, in early 2022 to develop its FX and CFD products in Dubai. However, Gibson left the company last year to launch his own CFD brokerage. Meanwhile, UK-registered Tavira generated over £31.7 million in revenue in fiscal 2024, which ended on March 31, an increase of almost 25 percent year-over-year.

eToro Exits Philippines

eToro, which recently stopped offering services to its clients in the Philippines, confirmed to Finance Magnates that the move was motivated by “risk management considerations.” The broker has already “closed inactive accounts and is in the process of closing other accounts.”

“As a global business, eToro constantly reviews and occasionally updates the countries from which we onboard and service clients based on risk management considerations,” an eToro spokesperson told Finance Magnates. “We will no longer be providing services to users in the Philippines.”

"Most of Our Prop Trading Traffic Comes from Organic Channels": OANDA’s Global CMO

"Most of our prop trading traffic comes from organic channels followed by direct channels," Darren Moffett, Global Chief Marketing Officer at OANDA, told Finance Magnates in an interview, adding: "This means that the majority of users either find us via search engines or already know our website."

OANDA became one of the first established forex and contracts for differences (CFDs) brokers to launch prop trading services earlier this year. Although the services were initially offered under the brand OANDA Labs Trader, it was eventually rebranded to OANDA Prop Trader. Moffett further highlighted that "prop traders' appetite to pursue further opportunities by buying more challenges or keeping their funded accounts for longer needs to be stimulated."

Strategizing to Ensure “I Don't Hire More People Than I’d Like to Oversee”: Rostro’s Ayres

“I think we'll pass 200 or 205 headcounts by the end of the year,” Michael Ayres, Group CEO of Rostro Group, told Finance Magnates following the hiring spree of Scope Prime, the liquidity provider under the broad Rostro umbrella. He added: “The hires were really around certain regions. We won’t keep running at this rate; otherwise, I'll probably end up with more people than I would like to oversee.”

Some of Scope Prime's prominent hires include Andrew Taylor, Head of APAC, and Mirian Rostian, Head of Southeast Asia. It also onboarded Gaby Kanj, an industry veteran with over thirty years of experience, to focus on operations in the MENA markets. Fraser Nelson also joined Scope Markets earlier this year as the Global Head of Business Development.

Cyprus Sets the Clock for Crypto

Cyprus's financial regulator gave crypto-asset service providers a narrow window to operate under existing national regulations before new EU-wide rules take effect. The Cyprus Securities and Exchange Commission announced this week that it will stop accepting notifications from European Economic Area firms for cross-border crypto services on October 30, 2024.

This deadline comes just two months ahead of the Markets in Crypto-Assets implementation for crypto service providers, set for December 30. Firms that successfully notify CySEC by the October 30 cut-off will be permitted to continue their cross-border operations during a transitional period lasting until July 1, 2026, or until they receive a decision on their MiCA authorization, whichever comes first.

Donald Trump’s Economic Plan

Donald Trump is doubling down on economic policies he claims will be a game-changer for the American economy, but critics aren’t convinced. As he navigates the turbulent waters of his latest campaign, the 2024 election may hinge on whether voters buy into his vision of economic revival or side with his critics—among them Vice President Kamala Harris.

Trump’s economic playbook isn’t shy about its aims. Lower taxes, sweeping tariffs, and reduced federal spending are at its core. But while these sound familiar to anyone who lived through Trump’s first term, experts are questioning whether this version of “America First” will pull the U.S. out of its current inflationary spiral—or throw it deeper into economic turmoil.

SpaceX’s Reusable Rocket Aces the Landing

Elon Musk’s SpaceX pulled off an unprecedented rocket booster landing, proving once again that reusable rockets are the future. SpaceX, everyone's favorite rocket company, has done it again! In a feat that would make sci-fi fans drool, the company managed to launch and catch a reusable rocket booster with mechanical arms—lovingly referred to as “chopsticks.”

This incredible achievement marks another giant leap toward a future where space travel isn’t just for billionaires, but could actually be affordable… someday. The company’s latest test launch is yet another example of how reusable rockets are changing the game for space exploration and making Elon Musk’s vision of interplanetary travel a little more realistic.