Polish
English
German
French
Portuguese
Italian
Czech
Slovak
Vietnamese
Polish
Alfa Forex is withdrawing from the retail market. The reason for ESMA?
Alfa Forex, a broker using CySEC's Cypriot license, announced yesterday that it has finished providing services to retail investors. Thus, it plans to transform its business model focusing only on professional / institutional clients.
Reason for ESMA regulations?
In the aforementioned communication, Alfa Capital Holdings informs that the end of cooperation with retail traders is planned for June 2019. Not so long ago, the Cypriot broker tried to conquer the Polish retail market by engaging in both marketing (participation in FxCuffs 2018 in Krakow), as well as introducing instruments with PLN into your offer, an account in the Polish bank branch, as well as investment accounts in PLN. It is now known that this strategy will not be continued.
The message reads:
"Alfa Capital Holdings (Cyprus) in strategic plans wants to focus on providing institutional trading services on the FX market by offering related products to professionals through an existing trading platform. Other business lines of the company are not subject to change due to the decision regarding the Alfa-Forex brand. Customers affected by the change will be additionally informed about the details. "
Although the reason for this decision has not been officially written, it can be assumed that this is the "ESMA effect". Yesterday the European regulator once again extended the existing product intervention for the next 3 months. Such a policy leaves no illusions and unequivocally suggests that despite the "temporary" nature of the changes, they will probably stay with us for much, much longer.
Thus, the scenario in which the European Forex industry is entering into consolidation is slowly coming to fruition, and only the largest and the best-optimized brokers will be able to keep on the retail CFD market in the EU. If the result is not total closure of less profitable businesses, in the best case selected entities will be forced to look for their own niche, and this is the plan Alpha Forex has.
