More Brokers Flocking to Australia

The Financial Commission / Media posts / More Brokers Flocking to Australia

A wave of recent industry news reports indicates both retail and institutional brokers are flocking to the regulated Australian FX and CFD market for business. The latest news comes from FBS, which announced via FinanceMagnates that it is obtaining an AFS license from the Australian Securities and Investments Commission (ASIC).

Last week we heard that GKFX, a popular UK-based brokerage, has completed an acquisition to enter into the Australian retail market as well, having acquired FairMarkets, a locally registered brand. In addition, on the institutional side, FX technology provider FDCTech has announced plans to enter the market via a purchase of Genesis Financial, which has a consolidated revenue and EBITDA in U.S. dollars for the 2020 fiscal year of $15.6 million and $1.2 million, respectively.

All this news comes ahead of the planned Contracts for Difference (CFDs) market restrictions coming into effect on March 29th, 2021 and suggests that retail and institutional firms see an opportunity to increase their business amid a possible regional consolidation following the ASIC restrictions being implemented.

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