Forex or foreign exchange is a decentralized market. With over $7,5 trillion traded daily (Source Triennial Central Bank Survey of foreign exchange and Over-the-counter (OTC) derivatives markets in 2022 (bis.org), Forex is one of the largest and most liquid markets in the world. While Forex offers numerous opportunities for profit, it also presents risks, including the possibility of losing your investment. Therefore, it is essential to take steps to ensure the safety of your funds when trading Forex, especially if you are a retail Forex Broker or Investment fund as you are operating with the funds of your clients.
Advanced Markets embraces strict regulations and employs the following procedures, to help provide peace of mind to our clients:
1. Segregation of Client Funds
Client funds are held in accordance with regulators’ requirements, in segregated client trust accounts, separate from the firm’s capital. Customer funds are never co-mingled with the company funds. This safety measure ensures that the client’s funds cannot be used for any other purpose. In the unlikely event of insolvency of the firm, these segregated assets are not available to general creditors and are therefore protected against creditors’ claims.
2. Regulatory Oversight by Australian Securities & Investments Commission (ASIC)* and Financial Conduct Authority (FCA).
All companies licensed by ASIC and FCA are obligated to meet financial standards and are held accountable for integrity within financial markets. These regulators work to protect consumers and investors by providing education to traders, offering ongoing support and informational tools and working in partnership with the financial services industry to promote the best trading practices.
3. Third-Party Audit by the Sixth Largest Accountancy Firm in the World
Advanced Markets’ annual financial reports are audited by Grant Thornton – One of the world’s top public accountancy firms. We hold ourselves to the highest standards, with dedication to the principles of safety and soundness.
4. Reputable Top-Grade International Banks Holding Deposits and Providing Clearing
Advanced Markets holds all client and firm’s funds at internationally rated banks. These include DBS, UBS, Macquarie Bank and Standard Chartered Bank.
Additionally, we maintain credit lines and Prime Broker relationships with UBS AG and Standard Chartered Bank.
Dealing with banks at this level of creditworthiness ensures that clients’ funds are subject to the lowest possible credit risk.
5. Strong and Supportive Ownership
Advanced Markets recognizes the importance of having a solid business foundation in the rapidly changing FX landscape. The company is financially powered and strategically guided by such valued investors as Macquarie Americas Corp Inc., a wholly owned subsidiary of Macquarie Bank – the largest Australian investment bank and GFI Group Inc, a NYSE listed wholesale OTC broker. We are very fortunate to work with such high-caliber investors, striving to bring transparency and the best execution practices to the FX market.
6. Agency Prime Brokerage Business Model
Advanced Markets pioneered direct market access (DMA), to stream executable foreign exchange rates from leading global FX banks.
As a pure agency broker, Advanced Markets passes all trades placed on our platforms to several major FX clearing banks. This allows us to operate our FX Prime Brokerage business with negligible market risk.
Advanced Markets holds a wholesale STP-only license with ASIC and the FCA. We believe that our Pure Agency, FX Prime Brokerage business model, allows us to offer the best liquidity available with the tightest spreads possible without taking on significant financial risk, while at the same time, eliminating any conflict of interest.
*AFS license requirements and protections do not apply to financial services provided outside Australia
In order to open an account with Advanced Markets (UK) Ltd, the prospective client may qualify as a ‘Professional client’ or as an ‘Eligible Counterparty,’ as defined by Section 3.5 and 3.6 of the UK’s Financial Conduct Authority’s (FCA) Conduct of Business Sourcebook, respectively. Clients will be required to represent that they are acting for their own account and shall at all times qualify notwithstanding any subsequent determination to the contrary as a “Professional” or “Eligible Counterparty” client, the prospective client is required to supply the appropriate proofs. For more information regarding the qualification standards, please contact us.”