FXTM Withdraws CySEC License As Its New Business Strategy

Story Highlights

• FXTM Withdraws CySEC license, signaling a strategic shift away from the European market.
• Emerging markets with high growth potential become the new focus for the online forex broker.
• FXTM maintains a global presence with hubs in Dubai, London, Hong Kong, and Limassol (Cyprus).

Forextime Ltd (FXTM), a heavyweight in the online forex trading scene, has made a bold move by surrendering its Cyprus Investment Firm (CIF) license. This decision, finalized by the Cyprus Securities and Exchange Commission (CySEC) on May 20, 2024, signals a dramatic shift in FXTM’s strategic trajectory. Let’s navigate the currents behind this decision and explore the new horizons FXTM seeks.

Calming European Waters

The license surrender wasn’t a sudden storm. It follows a calculated course charted earlier. FXTM had already begun steering away from European shores in late 2023, quietly ceasing operations under its Cypriot entity. Retail clients in the EU had been off-boarded even earlier, in February 2021. A notice on their EU website serves as a permanent anchor marking this complete withdrawal from the European market.

ΑΠΟΦΑΣΗ ΕΚΚ για την ανάκληση της άδειας λειτουργίας ΚΕΠΕΥ της εταιρείας Forextime Ltd

CySEC Decision for the withdrawal of the CIF licence of Forextime Ltdhttps://t.co/f7jSzMdzy2

— CySEC (@CySEC_official) May 24, 2024

Setting Sail for Uncharted Territories

The reason behind FXTM’s change of course lies in the vast, unexplored territories of emerging markets. Alison Cashmore, Group Chief Commercial Officer of Exinity, the parent company of FXTM and Alpari brands, explains this strategic shift. “As a group, Exinity focuses on providing trading services to clients in fast-growing emerging markets through several trading and investing brands.

We haven’t targeted clients in Europe for several years through any of our brands, and we don’t expect to focus on European audiences as we look forward. As a result, we took the decision not to maintain a retail license under CYSEC,” Cashmore reveals. This strategic pivot highlights FXTM’s laser focus on capturing new client bases in these dynamic economies.

Limassol Remains a Port of Call

While the CySEC license has been surrendered, FXTM isn’t abandoning its Cypriot roots entirely. Their Limassol office remains a crucial port of call, serving as one of their four global hubs alongside Dubai, London, and Hong Kong. Additionally, their network of regional business development offices continues to operate across Asia, Africa, the Middle East, and Latin America. This robust global network ensures they can continue providing services to existing clients while charting a course towards new markets.

FXTM’s strategic maneuver reflects a broader current within the online brokerage industry. Companies are increasingly acting like nimble explorers, venturing into uncharted territories with abundant resources. Emerging markets often boast young, tech-savvy populations eager to navigate the financial seas. By setting sail for these shores, FXTM and similar companies position themselves to capture a vast pool of potential clients.