RoboMarkets will discontinue offering “high-risk and leveraged instruments” like forex and contracts for differences (CFDs) through its European entities from early 2025, as part of the group’s broader European business strategy.
Restructuring of European Business
Announced today (Monday), RoboMarkets will move its European retail clients to its BaFin-regulated German entity, which will focus on offering only stocks, bonds, and exchange-traded funds (ETFs). Further, the Cyprus-based entity of RoboMarkets will transition to an institutional broker and will stop serving retail clients in early 2025.
RoboMarkets only cited “the conditions of the European market” to justify its restructuring of the European business model. The broker obtained a licence from the Cyprus Securities and Exchange Commission (CySEC) in 2013, according to the regulatory registry, and is primarily offering trading services to its European retail clients under it by passporting it to other European Union jurisdictions.
Now, the change in its business model will make the Frankfurt-based entity the centre for serving European retail clients. Interestingly, the broker’s focus on Germany became prominent as it started sponsoring the German football club Eintracht Frankfurt in 2022.
Leveraging Technology Expertise
“RoboMarkets has strong expertise in IT, liquidity, and other aspects of brokerage, which we aim to leverage to compete effectively in the stock brokerage sector,” said Vanyo Walter, Director of RoboMarkets’ German entity. “Our proprietary platform, developed by our IT team and supported by ongoing investments in technology, is designed to benefit our clients and attract more self-directed traders and investors in Europe.”
“Moving forward, RoboMarkets Deutschland GmbH will continuously expand its stock offerings and markets, optimise trading conditions, and maintain a stable, competitive, and attractive environment for clients. We believe the market for self-investing and trading in stocks will grow significantly in Europe, and we are committed to becoming one of the leading stockbrokers in the region.”
RoboMarkets is not the first FX and CFDs broker to shift its focus from leveraged derivatives to cash equities. London-headquartered Trading 212 also changed its priorities to stockbrokering but still offers CFDs to retail clients.
RoboMarkets will discontinue offering “high-risk and leveraged instruments” like forex and contracts for differences (CFDs) through its European entities from early 2025, as part of the group’s broader European business strategy.
Restructuring of European Business
Announced today (Monday), RoboMarkets will move its European retail clients to its BaFin-regulated German entity, which will focus on offering only stocks, bonds, and exchange-traded funds (ETFs). Further, the Cyprus-based entity of RoboMarkets will transition to an institutional broker and will stop serving retail clients in early 2025.
RoboMarkets only cited “the conditions of the European market” to justify its restructuring of the European business model. The broker obtained a licence from the Cyprus Securities and Exchange Commission (CySEC) in 2013, according to the regulatory registry, and is primarily offering trading services to its European retail clients under it by passporting it to other European Union jurisdictions.
Now, the change in its business model will make the Frankfurt-based entity the centre for serving European retail clients. Interestingly, the broker’s focus on Germany became prominent as it started sponsoring the German football club Eintracht Frankfurt in 2022.
Leveraging Technology Expertise
“RoboMarkets has strong expertise in IT, liquidity, and other aspects of brokerage, which we aim to leverage to compete effectively in the stock brokerage sector,” said Vanyo Walter, Director of RoboMarkets’ German entity. “Our proprietary platform, developed by our IT team and supported by ongoing investments in technology, is designed to benefit our clients and attract more self-directed traders and investors in Europe.”
“Moving forward, RoboMarkets Deutschland GmbH will continuously expand its stock offerings and markets, optimise trading conditions, and maintain a stable, competitive, and attractive environment for clients. We believe the market for self-investing and trading in stocks will grow significantly in Europe, and we are committed to becoming one of the leading stockbrokers in the region.”
RoboMarkets is not the first FX and CFDs broker to shift its focus from leveraged derivatives to cash equities. London-headquartered Trading 212 also changed its priorities to stockbrokering but still offers CFDs to retail clients.
This post is originally published on FINANCEMAGNATES.
