ATFX to Launch Prop Trading Services
ATFX, a popular forex and contracts for differences (CFDs) broker plans to launch prop trading services, Finance Magnates learned exclusively. The broker noted that the upcoming services will enable traders to focus on their “financial and professional growth.” The new prop trading company will be directly affiliated with ATFX.
The brokerage further emphasized that its prop trading services would offer “deep confidence” to traders, allowing them to scale their strategies within a compliant framework. ATFX is one of the heavily regulated brokers with authorizations from agencies in the United Kingdom, Australia, Cyprus, South Africa, the United Arab Emirates, Hong Kong, Mauritius, and Seychelles.
BDSwiss’ Chief Revenue Officer Launches Prop Trading Platform
Andreas Andreou, who left BDSwiss last month as the Chief Revenue Officer, entered the prop trading space by launching a new platform called thePropTrade.com. Andreou is the founder and co-CEO of this newly launched platform. He announced the official launch of the firm this week, revealing that the other co-CEO is Md Hazly, who served years as the Reginal Manager of the HF Markets.
The prop trading platform's website shows that it is owned and operated by QuantElite—FZCO, a Dubai-registered company. Its three trading challenges reportedly offer traders up to $200,000 in simulated funding. Interestingly, Alexander Oelfke, the former Group CEO of BDSwiss, also recently launched a CFDs broker headquartered in Dubai.
“Most Japanese Perceive Trading as a Free Time Activity”: Prop Firm Fintokei’s David Varga
“It’s still just the beginning for the Japanese market,” David Varga, co-founder of Fintokei and Purple Trading, told Finance Magnates about the adoption of prop trading, adding that “they are generally very slow at adopting new things from abroad.”
Czech Republic-based Fintokei, which is backed by Purple Trading SC, a contracts for differences (CFDs) broker, entered the prop trading industry by offering services in the Japanese market. Eventually, it expanded its global presence beyond Japan and is now focusing on new markets like Australia, Europe, and Southeast Asia. Most of its business is still coming from Japanese traders.
Two Prop Firms and ThinkMarkets Added to Warning List in India
The Reserve Bank of India's warning list added another popular FX/CFD broker, ThinkMarkets, and two prop firms, FundedNext and Smart Prop Trader. While these are the first prop trading entities the institution has focused on, the list already includes many well-known brokers, including eToro, IC Markets, and XTB.
Interestingly, companies on the Indian regulator's warning list often don't even offer their services in this country. In 2022, many popular names were added to the very same warning website. Finance Magnates spoke with representatives of several different brokers who stated they don't even operate in that market. Among them were XTB and eToro.
39% of Retail Investment Firms Cite Excessive FCA Data Requests, Survey Shows
The Financial Conduct Authority (FCA) and its Practitioner Panel commissioned Verian to conduct a survey for 2023–2024 to assess industry perceptions of the FCA’s regulatory performance. This annual survey, involving 25,000 firms, provides trend data and insights into how firms view the FCA’s role in the market.
The survey aimed to measure trust in the regulatory framework and the FCA’s effectiveness in promoting international trade. Results showed that 71% of firms in the Retail Banking and Digital Assets sectors were the most likely to trust the regulatory framework, followed by the Investment Management and Wholesale Financial Markets sectors, both at 58%.
FCA Has No Intention of Easing Its “Too Tough” Approach to Crypto Regulations
The UK's Financial Conduct Authority (FCA) defended its “too tough” approach to registering cryptocurrency firms, arguing that robust standards are essential for building a sustainable and trustworthy digital asset sector.
In a statement this week, Val Smith, Head of Payments and Digital Assets at the regulator's authorization division addressed criticism that the regulator's stringent requirements could potentially stifle innovation in the crypto industry and that the registration bar is set “too high.”
FCA Flags 38 Finfluencers
The Financial Conduct Authority (FCA) is interviewing 20 financial influencers under caution. According to the regulator, this action is part of its efforts to crack down on finfluencers who may be promoting financial products illegally. In addition, the FCA issued 38 alerts regarding social media accounts run by finfluencers that could contain unlawful promotions.
Other regulators, including FINRA and the SEC, expressed concerns regarding the impact of social media influencers on investor behavior. BaFin has presented concerning figures as well, indicating apprehension about the potential risks associated with their influence in the financial markets.
Saxo Bank Draws Acquisition Bids from Major Investors
Saxo Bank, the Danish trading platform, is now the center of potential acquisition talks. The deal reportedly attracted interest from major investors, including Altor Equity Partners, Centerbridge Partners, and Interactive Brokers Group. These firms have reportedly submitted preliminary bids, causing speculation of a significant transaction in the near future.
According to sources familiar with the matter, Altor and Centerbridge have submitted a non-binding offer for Saxo Bank. Interactive Brokers Group is reportedly among those evaluating the Danish firm for a possible acquisition. Despite the growing interest, Saxo Bank has not yet committed to any deal, leaving room for further developments.
Swissquote Enables Fractional Shares Trading
Swissquote became the latest broker to enable fractional share trading for its customers, highlighting that trading full shares "limited clients to strategies constrained by share prices rather than their available cash." In the announcement this week, the Swiss broker also launched a new "Saving Plan" order type and reduced trading commissions. It is now charging CHF 3 per trade for shares.
Fractional shares allow traders to purchase only a part of a whole share with whatever capital they have, significantly lowering the entry barrier to trade. For example, Apple shares are trading at $236.5 as of press time. However, if a trader only has $100 available, they can buy $100 worth of Apple shares and will own only a fraction of the whole Apple share, thus enabling fractional share trading.
CMC Moves Ahead in Australia, but IG Shows How Lucrative Singapore Is
Australia is considered one of the mature markets for forex and contracts for differences (CFDs); however, for CMC Markets, it turned out to be very lucrative. The London-listed broker generated more than £62.3 million in revenue from the land down under in the second half of the last fiscal year, which was even higher than its business in the United Kingdom.
Interestingly, it was the second half-yearly revenue period in which CMC's Australian revenue surpassed that from its home turf. The first time the Australian business outperformed the UK was in H2 FY23. However, figures from both markets were lower than the latest ones—Australia brought in £45.4 million, while the UK generated £39.3 million.
2024 US Election: Experts Warn “Poor Liquidity Can Lead to Price Spikes, Outages”
As the 2024 US presidential election approaches, the market is bracing for extreme volatility, which could present significant challenges for brokers, particularly in terms of liquidity management. Finance Magnates spoke with industry experts to understand how brokers are preparing for potential market disruptions and how liquidity issues could lead to price spikes, outages, and other risks.
“Liquidity issues tend to arise during news events that trigger unexpected volatility,” said Jonathan Brewer, Chief Revenue Officer at GCEX, when discussing with Finance Magnates the possible impact of the upcoming US elections on the brokerage business. “This particular election could result in extreme volatility, which may lead to liquidity challenges for brokers who have not carefully curated their liquidity.”
The Trump Show: From Central Park to McDonald's, Chaos is Constant
Trump’s latest antics span from his Central Park 5 comments to Arnold Palmer’s legacy as he courts controversy, masculinity, and a fast food frenzy. Just when you thought the ghosts of Trump’s past might take a breather, the Central Park Five case is back in the spotlight. Decades ago, Trump called for the death penalty for a group of teenagers wrongfully accused of murder, a stain he never quite managed to scour from his public image.
Now, in a true Trumpian twist, he’s being haunted by those same old missteps as he recently brought them up in the presidential debate. The result? He’s being sued. One might wonder if he’s trying to take the heat off his current legal messes by deflecting to bygone controversies.
Trump to Join Joe Rogan’s Podcast and Eminem’s a “Fan”
Ahead of his Friday chat with right-wing star Joe Rogan, Trump praised Tulsi Gabbard’s GOP switch, while Eminem’s latest political appearance adds fuel to the fire. Fresh from McDonald's, Donald Trump is gearing up for what promises to be one of the most talked-about podcast appearances of the year: a sit-down with right-wing media darling Joe Rogan.
The upcoming interview scheduled for this Friday is already stirring up speculation about what bombshells Trump might drop this time. For Rogan's legion of followers, anticipation is high. Trump, a master of making headlines, likely sees this as another golden opportunity to rally his base and throw a few more punches at his political rivals—perhaps with some unexpected jabs.
BTC over USD: Will BRICS Adopt Putin's Ambitious Alternative Payment System?
The BRICS Summit 2024 took place this week in Russia, and the event–in the context of some previous developments—offered useful indicators about global attitudes at government levels towards Bitcoin and crypto more broadly and the feasibility of establishing blockchain-based international payment systems.
Just prior to the start of the summit, at the BRICS Business Forum in Moscow, a project called BRICS Pay was discussed. This is a proposed blockchain-based payment system that has been pitched as being for both retail and B2B use, able to facilitate cross-border payments, and potentially using its own BRICS unit of account.
