Author: Adam Smith

Pepperstone launches Spread Betting on TradingView

Posted on by Adam Smith

Pepperstone launches spread betting on the Social charting platform TradingView

Pepperstone launches spread betting

Australia-based Forex and CFD broker Pepperstone has recently introduced "tax-free" spread betting for its users on TradingView, a platform that the broker integrated with early last year. According to the statement by the broker, from now on traders from the UK will have the opportunity to spread bet on different market instruments such as forex, commodities, indices, and shares directly on TradingView.

Pepperstone, which is in fact regulated by FCA, will enable its UK customers to access Spread Bet on the aforementioned instruments on TradingView's highly customizable charts which remove the need to "screen switch" while spread betting. (Read Why Trade with UK FCA Brokers)

“We were delighted to be named Broker of the Year earlier this year. At Pepperstone, we are client-obsessed, so being acknowledged for providing the best TradingView client experience was a real honour. The launch of spread betting in the UK now completes Pepperstone’s superior TradingView package, enabling our clients to trade the way they want to trade on the platform.”, said Tomas, Pepperstone Group CEO.

The integration of Pepperstone’s spread betting into TradingView specifically for UK traders seems to be a well-calculated strategic step. In the previous year, Pepperstone experienced a noteworthy surge in pre-tax profits from its operations in the UK, more than doubling to reach £4.6 million. Furthermore, the broker witnessed a substantial 36% increase in trading revenue, amounting to £10.7 million, over the course of the fiscal year that concluded on June 30th, 2022.

X Moves Towards Crypto Payment Services

Posted on by Adam Smith
X Moves Towards Crypto Payment Services

X, previously known as Twitter, is steadily progressing toward introducing financial services for its users, prominently featuring cryptocurrency payments. The recent announcement of a license acquisition in Rhode Island reinforces this development.

According to data provided by the Nationwide Multi-State Licensing System (NMLS), Rhode Island granted X the Currency Transmitter License on August 28, 2023. This license pertains to the transfer and receipt of financial funds, encompassing both traditional fiat currencies, such as dollars and euros, and cryptocurrencies like Bitcoin and Ethereum.

Consequently, with this license, X is now equipped to extend transfer, custody, and exchange services for digital assets to its expansive user base. This achievement aligns with Elon Musk's aspiration of evolving X into an 'everything app,' a vision reflective of the broader trend among social media magnates, increasingly venturing into the payment sector.

This Rhode Island license isn't X's maiden venture in this arena within the US. Previous licenses were secured in Michigan, Missouri, and New Hampshire in July, enabling X to offer its payment services across seven US states.

Although the precise timeline and manner of the crypto payment service's launch remain under wraps, industry insiders hint at its similarity to PayPal's offerings. A significant point of interest here is Musk's history as one of PayPal's co-founders, which may influence X's direction in this domain.

Earlier this year, X had expanded its financial services spectrum by integrating with the social trading platform eToro (Read our detailed article about eToro). This collaboration enabled users to trade stocks and other assets utilizing the $Cashtag symbol.

Top Brokers with Lightning-Fast Execution for Gold Trading

Posted on by Adam Smith

In the world of gold trading, speed can be the ultimate game-changer, and choosing a broker with swift order execution can significantly impact traders' success. After an exhaustive evaluation of the leading brokers in the industry, BlackBull Markets has emerged as the standout performer, offering unparalleled execution speed for gold trades, making it the preferred choice for traders seeking efficiency in this precious metal market.

The Importance of Order Execution in Gold Trading

In the realm of the gold market, swift price fluctuations are the norm, and executing trades at the right moment can determine the line between profitable trades and missed chances. Whether traders are employing scalping strategies or depending on automated systems, quick order execution guarantees the ability to enter and exit gold positions swiftly. This approach diminishes the possibility of slippage and optimizes the potential for profits.

Findings from Gold Trading Execution Speed Testing

Through a comprehensive examination of brokers specializing in gold trading, we assessed the speed of executing market orders. Our objective was to pinpoint the broker consistently offering the swiftest execution, thereby granting traders a notable advantage in the gold market. Following meticulous testing, BlackBull Markets emerged as the unequivocal leader, showcasing a remarkable average execution speed for gold market orders that surpassed all competitors. Its steadfast dedication to rapid execution positions it as a leading choice for traders in search of a dependable ally in the realm of gold trading.

Here's a glimpse of the average execution speeds for gold market orders among the brokers tested:

  • BlackBull Markets: 20.587 milliseconds
  • XM: 35.488 milliseconds
  • FXPro: 47.653 milliseconds
  • Admiral Markets: 85.559 milliseconds
  • Easy Markets: 104.461 milliseconds
  • Fusion Markets: 92.166 milliseconds
  • FP markets: 87.665 milliseconds
  • Pepperstone: 30.698 milliseconds
  • Eightcap: 276.66 milliseconds
  • IC Markets: 356.69 milliseconds

Testing Methodology for Gold Trading Execution Speed

To ensure the accuracy and relevance of our findings, our testing focused on the popular gold trading pair XAU/USD. We executed a total of ten buy and ten sell orders for 1 lot each of XAU/USD at regular intervals throughout a typical trading day.

By simulating real-time trading conditions, our methodology captured the brokers' execution speeds accurately. Utilizing standardized order sizes and a common gold trading pair created a level playing field for all brokers tested.

Throughout the testing period, we recorded the time taken for each gold order to be executed, measuring the order execution time from submission to confirmation. This data allowed us to calculate the average execution speed for each broker.

Conclusion

In the competitive world of gold trading, BlackBull Markets shines as a top choice for traders seeking lightning-fast execution, followed by Pepperstone and XM. With its industry-leading execution speeds, traders can seize time-sensitive opportunities and optimize their gold trading strategies with minimal slippage.

HFM Introduces Copy Cent Account for Copy Trading

Posted on by Adam Smith
HFM Copy Cent Account for Copy Trading

HFM, a renowned global multi-asset broker, has announced that the Cent Account is now available for Copy Trading. Copy Cent is available to both Followers and Strategy Providers who have joined HFcopy Trading. Traders have the option to track their preferred Strategy Providers and initiate trade replication with only a few cents.

Why open a Copy Cent account:

  • Copy other traders with minimal funds.
  • Diversify your trading portfolio by allocating cents across various traders and markets.
  • Explore different trading strategies and markets.
  • Test and fine-tune your trading strategies with less capital. 

For more information about the advantages of the Copy Cent account visit the HFM website.

About HFM

HFM, previously recognized as HotForex, stands as the brand under HF Markets Group. This globally recognized multi-asset broker serves a diverse clientele of more than 3.5 million active accounts worldwide. Accumulating a remarkable track record spanning twelve years, HFM has secured over 60 esteemed industry awards. The company provides a range of account options, inventive products, platforms, tools, and educational materials. Alongside exceptional customer support, it offers unmatched trading conditions to facilitate individuals and institutional customers to trade Forex and CFDs online.

Orbex Awarded “Best CFD Broker Asia” at the Mumbai Money Expo 2023

Posted on by Adam Smith
Orbex Awarded "Best CFD Broker Asia"

Orbex, a renowned worldwide CFD broker, achieved the esteemed accolade of "Best CFD Broker Asia" at the Mumbai Money Expo 2023, the largest financial exhibition in India. Notably, Orbex stood out as a significant participant in the expo, taking place from August 12 to 13, 2023, at the Jio Convention Centre in Mumbai, India. The company also held the distinction of being one of the event's distinguished Diamond sponsors.

The Money Expo 2023 showcased a comprehensive display of the latest trading and investment offerings, attracting a multitude of investors, traders, brokers, and industry experts from the entire region. Concluding the event was the highly anticipated Money Expo Awarding Ceremony, a platform that celebrated the most exceptional and innovative contributors in the financial sector. These awards recognized excellence across various categories, with the winners being meticulously selected by a panel of seasoned experts and analysts, adhering to rigorous evaluation criteria.

During the ceremony, Orbex was honored with the prestigious "Best CFD Broker Asia" award, a testament to the broker's unwavering commitment to providing a secure, transparent, and user-friendly trading platform for CFD traders across the Asian region. Since its establishment in 2011, Orbex has stood out for its responsible trading, underlined by its mission to continually enhance and deliver top-tier trading solutions to its clientele. With a steadfast focus on excellence, Orbex extends a suite of exceptional services, including award-winning research, step-by-step educational resources, unique analytical tools, and highly favorable trading conditions encompassing over 400 CFD assets.

Orbex Head of Training and Market Strategy Mohammed Al-Mariri who had the opportunity to accept the award in person, commented:

The recognition of this award deeply honors us, showing our dedication to providing an outstanding trading journey for clients spanning Asia and beyond. We express our gratitude to the Mumbai Money Expo organizers for hosting this pinnacle industry occasion, enabling us to present our array of offerings to a vast and diverse audience.

We are also grateful to our clients for their unwavering trust and loyalty, and to our esteemed partners and dedicated staff for their unyielding commitment and professionalism. Our commitment remains steady as we plan to continually surpass our clients' expectations by offering them a trading environment that is not only secure and transparent but also exceptionally user-friendly.

But recognition and awards do not stop here, as it is followed by a series of honors and awards granted to Orbex in 2023, including "Best Forex Provider 2023"; “Best Forex Broker Africa, 2023”; "Best Customer Experience Broker MENA, 2023"; and “Most Transparent Forex Broker, 2023”.

About Orbex

Orbex Global Ltd stands as a prominent global investment services company, delivering traders a suite of acclaimed forex and CFD trading services underscored by highly competitive conditions. Since its establishment in 2011, Orbex has been resolutely devoted to offering premier trading and investment solutions. These encompass cutting-edge education, top-tier research tools, and round-the-clock multilingual support, solidifying its commitment to clients' success.

ASIC Sues eToro Over High-Risk CFD Product

Posted on by Adam Smith
ASIC sues eToro

The Australian Securities and Investments Commission (ASIC) has commenced Federal Court proceedings against online trading platform eToro, alleging breaches of design and distribution rules. The suit focuses on eToro's contract for difference (CFD) product, a high-risk leveraged derivatives contract that allows users to speculate on various underlying assets' price movements.

On August 3, ASIC announced that it was suing eToro for offering its CFD product to a broad market of retail investors without proper screening tests to exclude unsuitable customers. The regulator contends that eToro’s CFDs, which it describes as "high-risk and volatile," were marketed to an overly extensive customer base.

ASIC alleges that the platform's screening test was "very difficult to fail," allowing clients to change their answers without limitations and prompting them if they selected answers that could lead to disqualification. As a result, a large number of retail clients might have been exposed to a CFD product that was not aligned with their investment goals, financial situations, or needs, thereby increasing the risk of consumer harm.

Furthermore, ASIC disclosed that nearly 20,000 of eToro's clients lost money trading CFDs between October 5, 2021, and June 14, 2023. eToro's website itself acknowledges that 77% of retail investor accounts lose money when trading CFDs with the platform.

"Our message to the industry is that CFD target markets should be narrowly defined given the significant risk that retail clients may lose all of their deposited funds," stated ASIC Deputy Chair Sarah Court. "CFD issuers must comply with the design and distribution regime and cannot simply reverse engineer their target markets to fit existing client bases."

ASIC alleges that eToro's CFD target market and its client screening process were insufficient, failing to properly filter out unsuitable customers. Additionally, the regulator accuses eToro of failing to ensure its financial services were provided efficiently, honestly, and fairly.

ASIC is seeking declarations and financial penalties from the Court. However, the date for the first case management hearing has yet to be scheduled.

BDSwiss Faces €100,000 Fine Over Regulatory Violations with Offshore Entities

Posted on by Adam Smith
BDSwiss Review

The Cyprus Securities and Exchange Commission (CySEC) has fined BDSwiss Holding Ltd, a Cyprus Investment Firm (CIF), a hefty €100,000 for enabling offshore companies to mislead customers by referencing its CIF status. The hefty penalty comes after BDSwiss was found redirecting customers to offshore entities that were not regulated.

In 2021, FCA similarly banned the broker after a comprehensive investigation found UK clients were predominantly onboarded to groups regulated elsewhere.

The CySEC probe discovered that BDSwiss had allowed its offshore associates to capitalize on the CIF status to attract clients, offering them investment services in Contract for Differences (CFDs) without the necessary initial margin protection and requisite risk warnings. By doing so, the broker effectively circumvented the statutory requirements of a regulated CIF provider.

  • The fine of €100,000 imposed on BDSwiss is for breaching Article 42 of Regulation (EU) 600/2014, as specified in Paragraph 5 of DI87-09, during the year 2021. The violation involves activities leading to the avoidance of the requirements of paragraph 4(1)(a) (initial margin) and (e) (risk warning) of DI87-09 by enabling offshore entities associated with BDSwiss to refer to the CIF status, without the necessary customer protections in place.

A similar course of events led to broker's ban in the UK in 2021. BDSwiss Holding and its associated brands were prohibited from operating in the UK after the FCA discovered investors were being offered high-risk CFDs using social media endorsements. The FCA concluded that BDSwiss Group had misrepresented the fact that one of its entities was regulated in the UK to lend an air of legitimacy to the group as a whole.

This misrepresentation misled investors to believe that all of the firm's activities were regulated by the FCA, whereas the reality was quite different. The overseas firms associated with BDSwiss did not adhere to the FCA's restrictions concerning the marketing and sale of CFDs to retail consumers.

The broker operates several brands regulated by various international entities, including Seychelles’ Financial Services Commission, the Cyprus Securities and Exchange Commission (CySEC), and the Financial Services Commission (FSC – Mauritius).

MultiBank Group obtains CySEC CIF license for MEX Europe Ltd

Posted on by Adam Smith
MultiBank

Multinational Retail FX and CFDs broker, MultiBank Group, continues its global expansion with its recent receipt of a Cyprus Securities and Exchange Commission (CySEC) CIF license for its subsidiary, MEX Europe Ltd. The license, granted on May 22, 2023, marks another significant step in the broker's international growth strategy.

MEX Europe Ltd is set to manage the mexeurope.com website, focusing primarily on clientele within the European Union. To bolster this operation, the company is establishing an office in Limassol, Cyprus.

Chairman of MultiBank Group, Naser Taher, expressed immense pride in the acquisition of the CySEC license, acknowledging it as a reflection of the company's commitment to developing a world-class, regulated financial products and services ecosystem.

"MultiBank Group has been operating in the financial industry with an unblemished track record for over 20 years, and as such, it has built a reputation for providing the highest level of funds security, first-class financial services, award-winning technology, and products," Taher stated.

  • The unveiling of MEX Europe comes as MultiBank Group prepares to go public in 2023. The company has several innovative projects in the pipeline, including an inter-bank ECN trading platform for financial institutions and banks, a digital assets exchange regulated in Australia, a globally oriented digital payments processor, and an enhanced social trading application. The firm's aim is to create the world's first cross-asset ecosystem, bridging the gap between traditional and emerging forms of finance.
  • MultiBank Group last October secured licenses from the Securities and Commodities Authority (SCA) of the UAE and the Monetary Authority of Singapore (MAS). These recent acquisitions join an array of regulatory licenses from institutions such as ASIC, AUSTRAC, BaFin, FMA, FSC, CIMA, TFG, and VFSC. With 12 regulators, MultiBank Group assures a fully regulated and secure trading environment for its vast global clientele.

Last year, as part of its global expansion initiative, MultiBank Group moved its headquarters from Hong Kong to Dubai. The Group, comprising several entities, is heavily regulated across five continents by over 11 financial regulators, including those in Australia, Germany, Austria, Cyprus, Cayman Islands, UAE, BVI, Singapore, and Vanuatu.

With over 25 branches worldwide, an impeccable regulatory record, and a loyal customer base exceeding 1,000,000 users, MultiBank Group is poised to maintain its leading position in the global financial industry.

Spain’s CNMV Implements Marketing Restrictions and Margin Requirements for Leveraged Products

Posted on by Adam Smith
CNMV

The Comisión Nacional del Mercado de Valores (CNMV), Spain's financial watchdog, has introduced new marketing restrictions and margin requirements for leveraged products. The European Securities and Markets Authority (ESMA) has published an opinion on these product intervention measures, supporting the CNMV's efforts to protect retail investors.

Under the new regulations, the CNMV prohibits the offering of training, technical seminars, courses, or sessions related to leveraged products, excluding turbos, to retail investors. The aim is to prevent misleading or inappropriate marketing practices. Additionally, advertising communications on contracts for difference (CFDs) targeting retail clients are strictly forbidden, including the sponsorship of events or organizations. The CNMV has also implemented restrictions on remuneration policies and cash deposits by customers.

  • The CNMV's intervention measures specifically target certain futures and options, categorized as "other leveraged products." These products are defined as financial instruments where the maximum amount at risk exceeds the initial investment or is unknown at the time of subscription. However, turbo products are exempt from these measures, as the total amount at risk is equal to the amount invested.
  • The newly implemented measures require providers of high-risk products to close a retail client's open positions when the value of the positions is reduced to half the initial margin. This aligns with the existing measures for CFDs. Furthermore, these high-risk products will be subject to the same initial margin protection as CFDs, with a potential exception for products with non-crypto asset underlyings if the trading venue permits a lower initial margin requirement.

ESMA acknowledges that the CNMV's measures do not include a "negative balance protection" provision. Instead, the CNMV aims to mitigate the risk of negative balances by applying margin close-out protection and initial margin protection, ensuring consistent and prudent account-level closure of positions. However, ESMA highlights that the CNMV allows for a lower amount of initial margin compared to the existing measures for products subject to lower margin requirements by trading venues.

ESMA agrees with the CNMV's assessment that other leveraged products bear similarities to CFDs and acknowledges the risks associated with crypto assets. The EU regulator will closely monitor whether these products pose detrimental consequences for retail clients similar to those observed with CFDs.

The CNMV's proposed marketing ban aligns with the existing 2019 CFD Resolution enacted by ESMA. It prohibits the provision of payments or benefits related to the marketing, distribution, or sale of CFDs to retail clients. ESMA has previously supported this restriction.

ESMA encourages other National Competent Authorities (NCAs) within the European Union to monitor potential risks and consider similar measures in their jurisdictions. NCAs may take product intervention measures but are required to notify ESMA and other NCAs at least one month before the intended implementation unless urgent action is necessary.

The CNMV's proactive approach to protecting retail investors and addressing risks associated with leveraged products demonstrates its commitment to ensuring the stability and integrity of the Spanish financial markets.