eToro, a retail brokerage platform, announced that it is onboarding new clients from South Africa.
The platform is registered under a United Kingdom-based entity, eToro (UK) Ltd, which is regulated by the Financial Conduct Authority (FCA).
It means South African clients can take advantage of the biggest financial event in London. eToro announced in an announcement that “it’s been a long time coming,” but they are excited to be accepting new users from South Africa.
The brokerage does not have a license from the Financial Sector Conduct Authority, which is the financial market regulator in South Africa.
However, it can still serve clients from the country due to its UK-based entity. It is good news for those in South Africa who are interested in taking part in the London financial scene.
eToro, a leading online broker, has made a name for itself by offering copy trading services and transitioning to a full-fledged brokerage.
The company is headquartered in Israel and is regulated in multiple other jurisdictions, including Australia, Cyprus, and Seychelles. eToro entered the South African trading market when it was pushing to list itself publicly on a United States stock exchange.
It has entered into an agreement with an America blank-check company for a reverse merger but is yet to close the deal with the approaching deadline of June 30, 2022.
Moreover, eToro registered itself as a digital asset service provider (DASP) in France, allowing it to offer non-leveraged crypto products in the country. The broker is aggressively expanding its cryptocurrency offerings and is committed to providing the best possible experience to its clients.
Africa: A growing retail trading market
South Africa is one of the most important markets in Africa for retail trading activities.
Approximately 190,000 people trade forex daily in South Africa – just behind Nigeria. However, South Africa tops the average transaction size per trader in the continent.
It makes South Africa an extremely attractive market for forex brokers. Poland-headquartered XTB intends to launch South African forex trading operations in the second half of 2022. And they’re not the only ones – other brokers are also planning to enter the lucrative South African retail trading market.
With such high demand for forex trading services, it’s no wonder that more and more brokers are looking to set up shop in South Africa.
For traders in South Africa, this can only mean more choice and competition – which is good news.