Poland-based X-Trade Brokers, better known as XTB, has received a new operational license from the Financial Sector Conduct Authority (FSCA), the regulator of the South African financial markets.
As seen on the regulatory registry, the new license was awarded to XTB Africa (Pty) Ltd on August 10, 2021. The Polish broker formed the local South African entity in 2018.
The new license came as a massive achievement on the part of the broker as it was in the process of receiving the license for more than the past two years. “This is due to the complexity of local laws and regulatory changes that have occurred recently,” XTB CEO, Omar Arnaout told Finance Magnates last December.
Push for International Expansion
Headquartered and listed in Poland, XTB holds multiple licenses from the European regulators: it is regulated in the United Kingdom, Poland, Spain and Cyprus. It also holds a Belize license.
The authorization for the latest South African license came less than a month after the broker received another such regulatory approval, which was a much-sought category three license from the Dubai Financial Services Authority (DFSA). Both these licenses have been added as the Polish broker is aggressively pushing for international expansion.
South Africa is seen as one of the largest trading markets as demand for forex and CFDs trading is increasing rapidly there. This year alone, the FSCA granted licenses to at least three other brokerages: Eurotrader, ETX Capital and Exness.
Meanwhile, XTB business activities and gains skyrocketed last year with the impact of the ongoing pandemic on the markets. However, the broker ended the second quarter of 2021 in losses as the market activities corrected heavily.