Author: Desmond Brooks

Interactive Brokers has reached a settlement with FINRA regarding allegations of regulatory violations tied to free-riding activities in customer cash accounts. The broker, a FINRA member since 1995, agreed to pay a $2.25 million fine as part of the resolution, which also includes a formal censure. The settlement concludes the matter without the firm admitting or denying FINRA’s findings. Over 4.2 Million Free-Riding Instances Identified Between October 2015 and December 2022, Interactive Brokers reportedly failed to detect more than 4.2 million cases of free-riding involving options and issued options transactions. Free-riding occurs when securities are bought and sold without full…

Polish fintech company XTB (WSE: XTB) has achieved significant milestones in its international expansion, securing regulatory approvals to operate in Indonesia and the United Arab Emirates (UAE). These developments mark a major step in XTB’s strategy to extend its presence beyond Europe and into Asia and the Middle East. Licenses in Indonesia and UAE Signal Strategic Growth XTB’s Indonesian subsidiary, XTB Indonesia Berjangka, has obtained a PALN license from the country’s regulatory authority, Bappebti. This license enables the company to offer stock and ETF investment services to Indonesian residents. Operations in Indonesia are set to launch in the first half…

YCM-Invest has reported a significant leap in revenue for the first nine months of 2024, ending on September 27. The firm generated £808,513 in revenue during this period, marking a 147% increase compared to 2023. Moreover, it turned a profit of £319,478, a sharp contrast to the previous year’s loss of £542,481. Resurgence Through Cost Reduction The company’s turnaround in profitability is largely attributed to effective cost management. Despite the revenue boost, YCM-Invest reduced its sales costs to £292,078, down from £414,345 in 2023. Administrative expenses also fell significantly, from £453,721 to £196,805. This disciplined approach to expenses has been…

Victims of financial scams in France face annual losses exceeding €500 million, according to a recent report by four leading French authorities. Despite this staggering figure, the report noted a decrease in the number of fraud complaints, which may be due to increased use of civil compensation programs and the consolidation of complaints. The study, conducted by the Paris Public Prosecutor’s Office, the Autorité des Marchés Financiers (AMF), the Autorité de Contrôle Prudentiel et de Résolution (ACPR), and the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (DGCCRF), identified several common types of scams.…

Westpac New Zealand has acknowledged overcharging 24,621 customers a total of NZ$6.35 million due to systemic issues in applying discounts and benefits. The Financial Markets Authority (FMA) has initiated court proceedings against the bank for these failures, which have prompted Westpac to agree to compensate affected customers. Systemic Failures in Discount Programs The bank admitted to making misleading representations about discounts under its Employee, Gold, and Platinum packages, along with other business banking services. These failures resulted from manual processing errors and inadequate system controls that did not consistently apply the promised benefits. “Westpac’s problems arose from poor system controls…

Alpha Capital Group, a London-based proprietary trading firm, has reported generating multi-million-pound revenues over the past three years. The company, founded in late 2021, has experienced remarkable growth, with revenue increasing by 846% in its second year and an additional 180% in its third year. This rapid expansion underscores the platform’s robust performance since its launch. “Since our inception, we’ve achieved extraordinary growth in both revenue and customer numbers year-on-year,” said George Kohler, Managing Director of Alpha Capital Group. “We anticipate 2025 to be a game-changing year as we aim to reach a significant revenue milestone.” Impressive User Growth Amid…

At the Finance Magnates London Summit 2024 (FMLS:24), Elina Pedersen, Chief Revenue Officer at Your Bourse, offered valuable insights into the evolving trading landscape during a conversation with Yam Yehoshua, Editor-in-Chief at Finance Magnates. Pedersen addressed a range of topics, from artificial intelligence (AI) in trading to liquidity provider strategies and new offerings for smaller brokers. Understanding AI’s Role in Trading Platforms Pedersen shed light on the difference between the hype surrounding AI and its practical applications in trading. She explained that much of what is marketed as AI is essentially machine learning, a technology that has been utilized by…

YCM-Invest, a UK-regulated proprietary trading firm specializing in services for professional traders, experienced a significant financial setback in 2023. According to its latest filing with Companies House, the firm’s revenue dropped sharply by 57.3%, falling from £767,220 in 2022 to £327,924 last year. Alongside the revenue slump, the firm’s net loss expanded to £542,481, a substantial increase from the £95,384 loss recorded in the previous year. Exclusive Focus on Professional Traders YCM-Invest sets itself apart by exclusively catering to professional traders, refusing to accept retail clients. To qualify for its services, traders must meet at least two of the following…

Union Standard International Group (USG), along with its former affiliates TradeFred and EuropeFX, was found guilty of “systemic unconscionable conduct” by an Australian federal court. Between 2018 and 2020, their actions caused customers to lose more than AUD 83 million (approximately USD 51.7 million). Misleading Practices by CFD Brokers USG, a contracts for differences (CFDs) broker, operated under an Australian Financial Services (AFS) license. However, TradeFred (managed by BrightAU Capital) and EuropeFX (operated by Maxi EFX Global), which served as its corporate authorized representatives, engaged in misleading and deceptive practices. These companies onboarded clients, offered USG’s products, and exploited inexperienced…

Naaem Aslan, CIO of Zaye Capital Markets, shared his perspectives on market trends, content strategies, and Dubai’s emerging role as a financial hub during his interview at the Finance Magnates London Summit (FMLS:24). In his discussion with Finance Magnates’ Jonathan Fine, Aslan emphasized the importance of education and delivering well-researched content to clients. “It’s crucial to explain what has happened in the market and its potential implications for investments. If clients haven’t yet invested, they need to understand the missed opportunities,” Aslan explained. Insights on Oil and Crypto Markets Aslan highlighted that the energy sector, particularly oil, remains a key…