No Forex business in Latin America? Think again!

Just three weeks after going live with Brazilian Real (BRL), Chilean Peso (CLP) and Colombian Peso (COP), emerging markets FX specialist R5FX, led by avantgarde industry figure Jon Vollemaere, has recorded a record day of trading since its establishment. Hot on the heels of the introduction of these three Latin American currencies, R5FX introduced ‘LATAM […]

No Forex business in Latin America Think again!

Just three weeks after going live with Brazilian Real (BRL), Chilean Peso (CLP) and Colombian Peso (COP), emerging markets FX specialist R5FX, led by avantgarde industry figure Jon Vollemaere, has recorded a record day of trading since its establishment.

Hot on the heels of the introduction of these three Latin American currencies, R5FX introduced ‘LATAM in London’ at the conclusion of a meeting with the Banco Central de Brasil, Securities and Exchange Commission of Brazil (CVM) and London-based traders of the Brazilian real.

Many firms have steered clear of the Latin American market, hence its relative sparseness when it comes to FX industry participants, despite it being a continent with very few entry barriers, and no language or cross cultural difficulties, due to its lack of net worth, stable government or acumen among its populace, however London-based R5FX may well be onto something interesting with its different approach.

The very few companies which have made forays into Latin America this far have concentrated their efforts on education programs for potential traders in the region, and on attempting to onboard local clients via local representatives.

Bringing Latin America to London is better than attempting local presence

By bringing the actual currencies to London, and offering them to an astute base of traders in the world’s largest financial center with the assistance of authorities and central banks in South America, the likelihood of generating any level of volume from these regions is amplified several thousandfold and is not fraught with the difficulties of expending resources to tread unknown waters and return with nothing as so many have done.

R5FX has also taken the step of placing itself on the Foreign & Commonwealth Office’s Emerging Markets Capital Markets Taskforce for Brazil. The company supports a project between the UK government and the Brazilian authorities (Banco Central do Brasil and the Brazilian Securities and Exchange Commission) on among other things increasing the international use of the BRL.

Mr. Vollemaere’s initiative has borne fruit already, as he today publicly posted that yesterday’s trading activity surpassed all since inauguration, accrediting a significant part of this to the BRL trading.

All in all, a smart initiative by Mr. Vollemaere as he is bringing untapped, emerging currencies to the world’s currency epicenter, you could say that in this case Sao Paolo becomes St Pauls.

Read this next

Digital Assets

Zumo launches B2B ‘Crypto-as-a-Service’ solution for brokers

The new product, Zumo Enterprise, also features an embedded ESG and net zero strategy.

Technology

Top Tools to Add to Your Trading Platform to Delight and Retain Traders

The online trading boom that started during the pandemic-led lockdowns is abating. This is in part due to sustained market volatility which seems to be discouraging new investors. For example, day trading volumes in the US for retail investors declined in the last 2 quarters of 2021.  

Technology

Embedded finance platform Alviere taps Marqeta for branded card issuance in Europe and UK

Alviere has recently raised $70 million to fuel the ongoing expansion across the European region and the United Kingdom.

Retail FX

Overcharts partners with dxFeed for CME Group Market Depth

“More and more traders are using Market Depth while conducting volume analysis. Its primary function is to help traders identify potential support and resistance levels.”

Digital Assets

CoinGecko expands collaboration with CER.live security rating

CoinGecko, one of the earliest crypto data aggregators, has integrated the security score data from the CER.live rating. The trust assessments given to crypto projects will be integrated into their pages on CoinGecko website to draw users’ attention to the importance of security.

Metaverse Gaming NFT

Klaytn taps Parity Technologies to build infrastructure for Klaytn-Substrate

Klaytn has initiated a collaboration with blockchain infrastructure company Parity Technologies to strengthen its tech stack and meet the demands of enterprises looking to harness the crypto technology.

Retail FX

US Retail FX brokers suffer steep fall in client deposits, Trading.com racked up $46K

Retail FX deposits at US brokerages, which have been struggling to eke out a profit in a strict regulatory environment, dropped in March 2022 by $35 million, CFTC data showed.

Retail FX

eToro supports Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI)

Israeli social trading network eToro has added support for trading three new tokens. Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI) are the next coins to join eToro’s list of featured digital assets.

Executive Moves

LiquidityBook hires Fintech veteran Jonathan Cross to lead EMEA business

LiquidityBook, a provider of FIX and OMS trading solutions for both the buy and sell-side, has added Jonathan Cross to its business team for the EMEA region.

<