RoboForex Moves Closer to Launching in the Australian Market

Retail FX broker RoboForex, which is originally registered in New Zealand, moved closer towards entrenching itself in Australia after it applied for an operating license from the local financial regulator.

A quick glance at the ASIC Connect, which is the online portal of the Australian Securities and Investments Commission, indicated that RoboForex was issued with the Australian Business Number (ABN) in June.

Most New Zealand-based FX brokers have opted to be registered under Australia’s financial regulator, eschewing the local regulator in order to benefit from Australia’s strong standing in FX industry. Undeniably, Australia is favored due to its excellent business ethic and customer protection as well as secure financial markets.

New Zealand regulators dispatched mails to all FX players in the country in January 2013, telling them that they must stick to certain rules and be regulated by a financial markets regulator instead of having their names listed in the Financial Services Provider’s roll without having any physical offices there. However, the new rules require companies to have physical offices in New Zealand.

Hence, owing to New Zealand’s uncertain environment, it is only plausible for a retail FX brokerage such as RoboForex to move to Australia. Having an ABN allows RoboForex to claim Goods and Services tax credits and to give its business an identity. The ABN allows a prospective company to register its domain name for operating with in Australia, with which it is difficult to conduct business without. Once a company has applied for its ABN, it can now apply for ASIC license.

It is noteworthy that this isn’t the first time RoboForex is making a step to join the Australian market. Towards the end of last year, the broker filed an application to set up a private firm and obtained the Australian Company Number, which licenses it to operate as RoboForex (AU) Pty Ltd.