This week saw key developments in finance and technology. The UAE rose to prominence as the leading tech hub, surpassing Germany and Hong Kong. Meanwhile, Revolut is reportedly preparing to launch its own stablecoin, and MetaTrader 5 has expanded its payment options, now supporting over 40 methods.
Retail FX Highlights
France’s FX/CFD Traders Hit Four-Year Low
The number of French FX/CFD traders has dropped below 30,000, the lowest level in four years. In related news, proprietary trading performance remains elusive, with only 7% of prop trading accounts receiving payouts, as per data from FPFX Tech.
NAGA Introduces CFDs via Telegram
NAGA Group, following its merger with CAPEX.com, has launched its “NAGA Everything Trading” app, enabling retail traders to trade directly through Telegram’s App Center. This allows users to onboard, complete KYC, deposit funds, and trade without leaving Telegram. NAGA views this as a strategic move toward global expansion, targeting previously untapped audiences.
Despite this progress, Telegram is also known for being a platform where financial scams thrive.
Financial Results Roundup
Finalto’s Profits Double in 2023
Two UK entities of the Finalto Group posted combined profits of $13 million in 2023, marking a 116% increase from the previous year. However, their revenue experienced a slight drop to $74.1 million, down by 7.9%.
Hantec Markets Records Losses
Hantec Markets’ UK unit reported a turnover increase of nearly 24%, reaching £6.8 million in 2023. However, the company posted an operating loss of £47,437, attributed to a significant IT investment toward the end of the year.
ThinkMarkets’ Profit Slumps 71%
ThinkMarkets’ UK arm saw a significant drop in profits, which fell by 71% to £82,925 in 2023. The company attributed this to a sharp decline in turnover and heightened operating expenses.
Regulatory Shifts in Malaysia
Labuan Authority Tightens FX/CFD Regulations
The Labuan Financial Services Authority (LFSA) has introduced stricter rules, limiting forex and CFD brokers to offering only currency-related instruments. Additionally, the minimum paid-up capital requirement for brokers has doubled to MYR 1.5 million ($349,000).
MetaTrader 5 Expands Payment Methods
MetaTrader 5 now supports over 40 new payment options, including digital wallets and local banking systems, making it easier for global traders to execute transactions.
UAE Rises as a Global Tech Destination
According to a recent survey by Capital.com, the UAE has emerged as the top tech destination, surpassing Germany and Hong Kong. Approximately 81% of Asian tech professionals view the UAE as an attractive location for innovation, with nearly half considering relocation. The country’s favorable policies and strong business environment are major draws for tech talent.
Sports Sponsorship Deals
Axi Signs John Stones as Brand Ambassador
Axi, an online trading broker, has named Manchester City defender John Stones as its newest Brand Ambassador. This follows a series of sponsorship announcements made in 2023.
Robinhood Partners with Memphis Grizzlies
In a major sports marketing move, Robinhood has inked a deal to become the official jersey sponsor for the NBA’s Memphis Grizzlies. The partnership will see Robinhood’s logo on the team’s uniforms starting from the 2024–25 NBA season.
Bitget Teams Up with LALIGA
Cryptocurrency exchange Bitget has entered into a sponsorship agreement with Spain’s LALIGA, becoming its official crypto partner for Eastern, Southeast Asia, and Latin America. This move marks Bitget’s foray into sports sponsorships, aiming to capture a larger market share.
Crypto News
Revolut Eyes Stablecoin Launch
Fintech giant Revolut is reportedly preparing to launch its own stablecoin, joining the likes of PayPal and Ripple in the competitive stablecoin market. This move is part of Revolut’s broader plan to strengthen its crypto-asset offerings and increase user security.
Markets React to Fed’s Rate Cut
The Dow Jones Industrial Average closed above 42,000 points for the first time, following the Federal Reserve’s decision to cut interest rates by half a percentage point. This move has reinvigorated investor confidence and reshaped market sentiment.
Wage Growth vs. Inflation
Despite a reported 4.4% increase in wages in the U.S. for July 2024, inflation outpaced salary growth at 4.7%. This means that real wage growth remains insufficient to cover the rising cost of living, leaving workers struggling to cope with inflationary pressures.
