In order to better serve its UK and European clients, forex brokerage XM commences a UK office. According to an announcement on the brokerage’s website, XM UK officially starts business on Tuesday. The news is not surprising, as the UK unit of the brokerage got license from the Financial Conduct Authority (FCA) in June this year.
Although the Cypriot brokerage is entitled to provide its services in UK and any other country that is a Member State of the European Union under the MiFID regulations, XM decided to go all the way. It applied for a license with the UK’s FCA in March this year, got approved, and now officially starts business.
UK regulation is famous for applying strict requirements to brokerage firms. Licensed companies are obliged to hold at least €730 000 in order to prove their financial stability and are required to comply with certain rules and procedures covering client funds, order execution, regular report filing, etc. More importantly, FCA-regulated companies fall under the umbrella of the Financial Services Compensation Scheme (FSCS), which protects consumers up to £50,000 per person, in case the company goes bankrupt or ceases trading.
“Over the past four years, we have been recording steady double-digit growth, which is considered as an achievement on its own, but we remain humble, focused and dedicated to our values,” the brokerage said in the official announcement. “We want to ensure that we achieve a healthy growth and we develop at a solid pace, a pace which we can adhere to and handle without compromising our values, brand and product.”
Obviously, the launch of XM UK is part of a global expansion plan of the company. Earlier in October, XM applied for a license with South Africa’s FSB.
XM is a brand of Trading Point Holdings Ltd., a company regulated by the Cyprus Securities and Exchange Commission (CySEC). Apart from its units in Cyprus and UK, it also has an Australian subsidiary, which holds a license from the Australian Securities and Investments Commission (ASIC). Furthermore, the XM group is registered with the relevant authorities in several other European countries, including the Germany, Spain, Italy, Finland, and France.
The brokerage provides its services to customers in nearly 200 countries, offering trading in more than 50 currency pairs, along with Silver and Gold.