E Forex Brokers May Start Fleeing The UK! But Where Will They Go?

Brexit is an extremely controversial topic. There are various ways we can look at it. The social impact, the political impact and of course the economic impact. There were hopes that the UK government would manage a "Soft Brexit" deal, but they seem to find it hard to find equal ground. So a question arises. If the UK government themselves cannot come to a conclusion to the crisis, will the EU even listen to their deal if they ever have one?

The looming of a Hard Brexit is something very hard to deal with for most UK-based companies. Some of the largest banks stationed there have already diverted massive amounts of resources outside of the country. Opting for the next best thing, Germany, or the neighboring Island of Ireland. It is only natural to see other financial firms to follow the footsteps of these institutions.

The mass migration

Forex brokers have already stated their discomfort with the tightening regulations on trading activities, not only within the UK but the EU in general. The ESMA regulations that pretty much restrict traders to trade with pennies, is not lucrative at all. Therefore an emerging and profitable market needed to be found.

There are several criteria to be filled in order to be eligible to host UK Forex brokers.

  • The country needs to have a stable economy
  • The political sphere needs to be without controversies
  • The majority of the population needs to understand the English language

Based on these criteria, there are not too many places a fleeing Forex broker can go. In fact, there are exactly 3 countries worth paying attention to.

South Africa

South Africa is indeed considered as one of the best options here, but it's not perfect. One major problem is that political stability is not guaranteed. Sure, it has been looking up for the last couple of decades, but the socio-economic problems in the country are rampant. If you see SA forex brokers, they're quite low in number and that has its own reasons. Just getting permission to start operations is not that easy. Furthermore, the country has just established a tangible financial regulatory framework last year.

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