Exness Accelerates its B2B Evolution with Decisive MoveDavid Morris, CEO London, discusses the bold ambitions of the Fintech firm in Europe and shares his insights on a rapidly changing industry.
FX Empire’s Jitan Solanki sat down for an exclusive interview with David Morris, The CEO of Exness (UK) Ltd to discuss the latest developments in the world of forex trading and his outlook on the company and the industry.
As a CySEC regulated broker, you also decided to add a full FCA regulatory license to your brand. With the recent crackdown by European regulators do you have any thoughts on the positives or negatives of such a move for the industry, as well as traders?
I think the only way we can interpret this crackdown of European regulators is in a positive light not only because of what it means for clients but also because of what it means for brokers too. For clients it can only mean increased protection and the comfort of trading with a reputable, secure broker. At Exness we always have our clients’ best interests at the forefront of every strategic move, so moving in line with tightening regulation is something we are more than willing, prepared and happy to do. As for how the changes in the regulatory landscape are positive for brokers, it simply means that the shadier brokers will start to fade and the truly legitimate ones who care about their clients and want them to do well, will shine.
Your Head of Product, Andrey Shamne, recently announced Exness will be moving into offering B2B services. Could you tell us more about what this involves?
Primarily this involves rolling out a White Label offering across the group. However, for our CY and UK entities, it means their retail trading services will cease as we focus solely on the B2B sector. In light of the ever-changing regulatory landscape and the stringent changes mentioned above, moving into the B2B sector seems like the most natural next step in Europe and the best way to tap into new markets and acquire new partners to help us propel the business forward.
In 2018, Exness surpassed trading volumes of more than $4 trillion. So far in 2019, your Exness Group volumes have exceeded $2.263 trillion. What are your plans to further increase these impressive figures?
Achieving these impressive trading volumes is the result of years of passion, loyalty and innovation being poured into everything we do across the Exness Group. Whether it was coining new industry terms and inventing new services and products, or making tremendous steps towards elevating the concept of customer service, this is what got us here. To further increase these figures, we will simply continue building on the legacy we have thus far created, with the introduction of more and more world-class products and services that best meet the needs of our customers.
You recently announced a partnership with technology provider Sumsub. Can you tell us more about this and the rationale behind such a move?
The rationale is simple. Brokers deal with many a challenge when it comes to establishing an adequate identity verification strategy that will adhere to the stringent AML requirements governing the financial sector, as well as the FATF guidelines. Coupled with our international offices and client base, it seemed logical to employ an automated KYC solution to help us effectively adhere to regulatory compliance and increasing identity fraud.
Could you give our readers your opinion about what’s going on in the CFD industry right now, and where it’s heading?
I think in the next 12 months we may start to see some consolidation in the industry. There is no doubt some firms would have suffered material falls in volumes since the ESMA crackdown and so it seems logical at some point that there will be some movement on that front. In the meantime, diversification of products and a move to a more professional client base are likely to feature heavily in the coming months.
Can you tell us about your collaboration with Real Madrid?
Real Madrid is a world-class global brand so it’s a partnership we are proud of as we enter our third year of sponsorship with the club. Through our sponsorship with them, we are, where possible, able to reward our clients, partners and associates with various VIP experiences as recognition of the loyalty they have shown us over the years, but furthermore, we can also be part of organizing significant charitable events by joining forces as two powerful brands. Just last year, we organised a football clinic and brought together 50 children from three different charities, giving them the opportunity to train and play with Real Madrid football legends such as Álvaro Arbeloa. We look forward to planning more events together this season.
Many brokers have chosen to offer clients other jurisdictions to trade through due to the recent leverage limitations enforced by ESMA. The Exness Group has a subsidiary licensed by the Financial Services Authority in Seychelles, called Nymstar Limited. Can you tell us more about this and how it fits into your group of companies?
As a continually developing group of companies tapping into new markets and growing our worldwide clientele, we are constantly looking into the new jurisdictions we can expand in, which will form the appropriate regulatory framework to allow us both to cater to the needs of our clients but also to provide them with fundamental protection. Many reputable brokers are licensed in the Seychelles which has become a respectable and trustworthy jurisdiction to be regulated by, so in this way we can continue to offer our clients their favourite trading conditions under secure conditions.
Currently, Exness only provides users with the ability to trade in the Forex market. Do you have plans to expand your offering into other asset classes?
In addition to the currency pairs, precious metals (Gold and Silver), commodities and indices the Exness Group of companies offer now, we do intend on adding more asset classes for clients to trade, including equities.
As stated on your website, only 52% of Exness retail investors lose money which is among the lowest in the industry. Do you have any advice for traders when choosing a broker to trade with?
My advice to all traders is to do their homework very well before choosing a forex broker to trade with. The first thing one should look at is security and that shows through a broker’s licenses; this is the strongest indication of an upright broker and means that among other things, clients will benefit from features such as negative balance protection, which Exness has always offered its clients. Moreover, traders should look at the quality of the trading conditions offered and the transaction costs involved, the payment methods offered and whether deposits and withdrawals are instant, and how hands-on the client support teams really are.