Apparently, there is another trend in forex industry apart from binary option, bitcoin boosting, and social trading. We've missed it before, but now spotted it for you. On April 5, several broker news presses reported that US institutional forex broker and liquidity provider Institutional Liquidity LLC (ILQ) have announced their decision to drop out of US forex retail scene.
Apparently, there is another trend in forex industry apart from binary option, bitcoin boosting, and social trading. We've missed it before, but now spotted it for you. On April 5, several broker news presses reported that US institutional forex broker and liquidity provider Institutional Liquidity LLC (ILQ) have announced their decision to drop out of US forex retail scene. ILQ decision is not the first being made by brokers to move out of a particularly tight regulation into a more relaxed one, and probably, will not be the last.
Exness - Shifts To Warmer Climate?
On April 1, retail forex broker Exness moved out of New Zealand to the island of St. Vincent and the Grenadines. The reason, as Exness press release said is upcoming legislative changes in New Zealand that will prevent us from continuing to offer our services under such profitable trading conditions. Hence, the move of its corporate base. No changes will be reflected on Exness clients on trading condition and terms, and Exness underscored their intention to improve trading condition for their clients.
Not a week passed after Exness announcement, now it is ILQ that's moved out of the US. US stringent regulation are well-known among forex industry. On September last year, Alpari US have migrated its US clients to FXCM and FXDD due to sharp decrease of its retail forex assets. Therefore, they may have struck with difficulties in meeting US regulators' capital requirements.
ILQ - And Who Else?
In the recent case, ILQ is moving its client to Advantage Futures. ILQ will not accept orders after April 11 at 5:00 pm EDT, and any open positions will be liquidated on April 16 at 3:00 pm EDT. ILQ mentioned no particular reason for the move in their notice. However, there is possibility that the cause is also incompatibility with US regulation. ILQ have established a growing business in Australia, and it could be that they consider the country's climate is more comfortable than US.
As Western forex regulators are tightening regulations and sharpening their claws, brokers are seeking ways to expand their market where the water is easier to navigate. Asia remains an attractive market, but it is not accomodative enough to be placed in the role of headquarter or operation base. Australia and New Zealand might be softer, but the rules may be considered lacking in flexibility. Ergo, if the broker in question refuses to comply with regulators' demands, the remaining choice is offshore islands such as Cyprus, Malta, St. Vincent and the Grenadines, etc. Not that it's going to be a hardship, as those islands are famous for their natural beauty. We would love to work in such beautiful places too.