The past year was rich in changes in the financial sector. Many advanced economies have adopted a number of laws restricting the use of OTC instruments. So, in Europe the size of leverage was limited when trading CFD contracts. Even earlier, restrictions on the promotion and advertising of such services came into force.
In this situation, brokers began to close their European branches. Clients are more attracted to companies in offshore states, for example, in Vanuatu, Belize, Saint Vincent and the Grenadines. There dealers offer more favorable terms on leverage, are not so picky about documents when verifying an account. Companies monitor their image, so the transition to offshore jurisdiction did not entail a massive fraud of customers.
Uncertainties add Brexit – Saxo Bank, CMC Markets and IG Group recorded a drop in customer activity from the UK. Suddenly Australia won. Clients trust state institutions, and the requirements of the European regulator ESMA do not apply to this country. However, experts note that Australia may soon tighten forex and CFD requirements following the example of Europeans.