Plus500 Ltd (LON:PLUS) has acquired the Japanese FX firm, EZ Invest Securities, in a move that allows the multi-regulated brokerage firm to offer its service in the Asian country. The FTSE 100-listed firm did not share the financial terms of the deal.
Although Plus500 have regulations in many other jurisdictions, this is not sufficient as no such passports are recognized, and FX brokers need to obtain JFSA authorization to do business in Japan.
Based in Tokyo and licensed by the Financial Services Agency (JFSA), EZ Invest is holding a Type 1 Financial Instruments Business Operator license. The company, which trades OTC contracts for difference (CFDs) and forex, is also a member of the Japan Securities Dealers Association (JSDA) and the Financial Futures Association of Japan (FFAJ).
Plus 500 said Tokyo is one of the world’s largest foreign exchange trading hubs, so the immediate presence in the substantial retail trading market in Japan is an exciting milestone as they continue their global expansion.
Plus 500 expands its global footprint
David Zruia, the chief executive officer of Plus500 said: “This acquisition represents an important strategic step for Plus500 as we continue to strengthen our position as a global multi-asset fintech group, by further diversifying our geographic footprint.I am excited about the opportunities available in the substantial Japanese retail trading market and, given Plus500’s considerable technological expertise and robust financial capability, I am confident that we will be able to maximise this opportunity.”
The delivery of a trading environment to the thriving Japanese market goes hand in hand with the company’s overall strategy to expand in the Asia Pacific region. However, Japanese markets are known as cutthroat in terms of competition and spreads, which inherently places a disadvantage on retail brokers. In addition, the maximum leverage for retail traders is limited to 1:25 and 1:100 for institutional clients. There are so many restrictions on using certain trading strategies like hedging, arbitrage, scalping and EAs.
Plus500 has recently expanded its global footprint through a license in Estonia, joining a growing number of UK brokers that have secured permission from the nation to further strengthen their regulatory status in the post-Brexit era.
The Israeli-based, but London-stock market listed was also encouraged by its entry into the futures and trading markets following acquisitions of Cunningham Commodities, a US-based futures commission merchant, and CTS, a technology trading platform partner.