AxiTrader heads to China, speaks to FinanceFeeds about size of business, new UnionPay agreement and plans to open Shanghai office
Today, at the FXIC Forex Industry conference in Shanghai, China, FinanceFeeds CEO Andrew Saks-McLeod met with AxiTrader to take a look at the company’s plans to make further inroads into China, with the existing IB network here in the world’s largest focus for FX companies set to be complemented by a physical office in Shanghai. […]
Today, at the FXIC Forex Industry conference in Shanghai, China, FinanceFeeds CEO Andrew Saks-McLeod met with AxiTrader to take a look at the company’s plans to make further inroads into China, with the existing IB network here in the world’s largest focus for FX companies set to be complemented by a physical office in Shanghai.
Gary Fang, a Sales Executive at AxiTrader who works closely with the company’s IB network and client base explained that “Currently, AxiTrader has between 1500 and 2000 active clients in China. Our foray into this market is still in its infancy, and we have not completed all of the marketing yet, but that is a very good start into what is the most lucrative region in the world.”
AxiTrader Sales Manager Dean Hyde demonstrated to FinanceFeeds that AxiTrader has now formed a relationship with China UnionPay in order that customers and IBs in China can process payments directly to AxiTrader. This is an increasing necessity, and FinanceFeeds research has recently concluded that in a very short time, there will be no other way of making payment other than using China UnionPay as the Chinese government is beginning to increase its blocks on the use of algorithmic payment processing systems which allow Chinese customers to process bank transfers via the internet, thus stepping up capital control laws which restrict Chinese citizens or businesses from using foreign payment methods.
As far as the company’s plans for growth in China are concerned, Mr. Hyde said “We have done well in China considering we are at an early stage since entering the market, however this region is high on the agenda for the next stage of our development.”
He continued “We currently have an IB network of around 50 IBs ranging from small partners to large IBs that do all the work including handle client accounts and documentation. Our next plan is to open an office in Shanghai, which will be our third overseas office after Dubai and London.
As far as Australia being a go-to region for Chinese firms, Mr. Hyde said that “The popularity of Australian FX firms among Chinese investors is largely down to ASIC regulation, which is similar to the FCA regulation in London. ASIC is very stringent and monitors the companies that it oversees on a realtime basis, and is not handing out any more AFS licenses to FX firms.
“The fact that we are based in Australia is good as it positions us well for the APAC region, however our is Australian, therefore our location is down to the actual origins of the company when we set it up in 2007, however the move toward opening an FCA regulated office in London was a strategic decision.
“Chinese companies and clients see Australia as an APAC hub and have strong trade ties with Australia” concluded Mr. Hyde. “In order to crack the IB market when faced with competition, it is important to be able to provide a diversified product range, but it is equally important to do a deal with an IB that is attractive enough to move the IB across.”
Photograph: AxiTrader’s Gary Fang, Dean Hyde with Andrew Saks-McLeod in Shanghai, China.