Vantage FX stops services outside of Australia
As of May 20th, 2019 the retail broker Vantage FX has terminated all services on the Vantage Global Prime platform to clients located out of the jurisdiction of Australia. However, the brokerage firm released an email to all oversee clients, informing them that they can sign up with their Cayman-Island regulated entity.
This email provided justification and reasoning as to why Vantage FX is shutting down their services to clients abroad, with the email’s statement reading: “In light of recent regulatory announcements, Vantage Global Prime…is no longer providing financial services to clients outside of Australia.”
Vantage FX isn’t the only broker that has announced their shutting down services overseas. IFGM also announced on Thursday, May 16th that they’d be shutting down their overseas services to clients.
FX Market in Australia
The Australian Securities and Investments Commission (ASIC) has been cracking down on the retail trading industry in Australia for some time now. This follows as the result of imposing regulations that were launched in Europe, quickly ASIC created regulation that was more lenient than that of the European Securities and Exchange Commission. As such, the FX Market Space in Australia has been growing dramatically, and the European market has been dwindling at a steady rate.
However, there has been some pushback from the Australian Government, which has continually introduced new product intervention measures on ASIC and brokers. Now, brokers must hand over their company data every quarter and brokers established in Australia can no longer offer their services overseas as a result of these PIM’s. This is what has caused for Vantage FX to stop offering their trading services outside of Australia.