UK-based providers of forex services, Alpha FX Group, announced the release of its new trading update for EU clients today. The group will not serve derivatives clients in some European countries now.
A temporary pause to European derivatives business
As Alpha Forex is based in the UK, which has moved out of the European Union, the group will not be able to provide derivatives services to its clients until its Malta-based subsidiary becomes operational. According to the company’s official trading update, Alpha FX will provide services to the European derivatives clients via reverse solicitation and operate on an execution only basis.
The problem with reverse solicitation is that it has not been implemented across EU countries uniformly and because of this, the company’s clients from certain member states of the EU will not be able to place new trades with the platform.
In an official announcement, Alpha FX mentioned,
“The vast majority of preparations for the Maltese subsidiary were complete prior to 2021, with an in-principle no objection letter obtained from the Maltese financial services regulator.”
Despite this, the group decided not to start the final setup before the outcome of Brexit was confirmed as the requirements could change, making their processes unnecessary.
A big decision after 2020
2020 brought mixed results for the platform as its revenue jumped while its net profit fell on a yearly basis. The firm also moved its independent non-executive director Matt Knowles from the board to a more active role to help the firm’s strategic processes. Morgan Tillbrook, the founder and CEO of the firm said that despite their challenges, the firm managed to have another year of strong consecutive growth in all divisions of their business.
He said that the firm is proud of its team for responding to the challenges. He said that the progress made during the year will also help the firm get a better result in the future.