Big Changes for IC Markets Clients
IC Markets, which is one of today’s largest forex and CFD brokers by trading volumes has just announced some very big changes affecting their clients. The company has given notice that anyone who is not an Australian national, may no longer be able to trade with the ASIC regulated Australian entity. This is due to regulatory changes. IC Markets claim that they cannot guarantee to provide financial services to “Overseas clients”. I.e. traders who do not reside in Australia. This announcement doesn’t mention anything about the companies CySEC license and if clients can be migrated to this entity.
How to Keep Trading with IC Markets
In the IC Markets Announcement, they mention that they have set up a company called True ECN Trading Ltd. This company is regulated under the Financial Services Authority of Seychelles. IC Markets Seychelles has a Securities Dealer Licence, the license number is SD018. And they confirm that IC Markets (SC) is a related entity of IC Markets AU. The company has assured clients that the transition will be so smooth that no one needs to do anything. The migration will be completely autonomous. From the 30th of June, if you keep trading on your IC Markets account, you will be considered to have consented and your account will transition to IC Markets Seychelles.
If you are still concerned about being pushed to the Seychelles company, there is the option of opting out of the migration and sticking with IC Markets in Australia. However, the company warns that there is no guarantee that they will be able to continue their relationships with you.
Is IC Markets Seychelles Safe?
Some traders may have concerns about moving their trading activities to a broker regulated in Seychelles. However, it’s still IC Markets that you are trading with. The management, team and technology behind the company remain the same. Plus, this only affects non-Australian citizens who are most likely not applicable to the investor protection measures offered by ASIC. What you should know is that the Financial Services Authority of Seychelles does not provide the same level of oversight when it comes to marketing and disclosing risks. If you already trade, then you know the risks, but this is bad news new traders.