The UK based multi-national financial brokerage house Think Markets which is currently operating in England and Australia has now branched out to South Africa. As per the statement released by the brokerage house, the firm has now opened a branch in South Africa which is offering trading services in Forex assets and CFD’s (Contracts for Difference). Among the offerings in CFD’s, the assets are not just limited to instruments from South African market but also include financial vehicles from other markets such as single-stock CFDs, stock indices and commodities via its trading platform.
In order to increase the customer base in South Africa and capture significant market share in a short time frame, the firm is offerings South African Rand denominated currency pairs including but not limited to USD/ZAR, GBP/ZAR, and EUR/ZAR. The platform is also set to offer a wide range of CFD indices and equity derivates from the Johannesburg Stock Exchange that is highly preferred by traders and investors.
Given the turbulent times in the forex market and increased reports of financial scams which are found in African financial market, the firm has decided to further sweeten their offering by offering capital protection facility. This is a highly attractive option for investors given the fact that statement released by the firm has mentioned the limit of capital protection policy on investment for US$ 1 Million equivalent to over 14.4 Million ZARs and is the only trading firm in South Africa to offer the feature. What it means for retail traders and investors alike is that, even if the brokerage house – ThinkMarkets.com were to go into insolvency proceedings, the clients have protection on their invested capital for up to US$ 1 Million. This offering of capital protection is made possible via the firm’s deal with London based insurance giant – Lloyds of London. The brokerage firm makes this capital guarantee attractive for the clients as there is a second layer of protection provided by the insurance firm on their investment.
The second layer of protection is that investors can still avail the funds from insurance service provider even in case both insurance firm and brokerage house default. This will be made possible via the insurance provider’s Central Fund which is held separately. When speaking about the extension of their business to South African market, Nauman Anees, CEO and Co-Founder of ThinkMarkets.com commented, “Our Company’s ethos is built on sound regulations and the protection of our clients’ money and hence the $1 million cover reinforces that Think Markets is one of the safest places for CFD traders”. Speaking on same, Faizan Anees – Managing Director and Co-Founder of the brokerage house said, “We are very excited about our new operation in South Africa, we have been serving traders from this region for many years and have built strong and lasting relationships. And now, with the $1 million insurance and localised products on our platform, we are well positioned to become the preferred broker for traders”.
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