MiFID forex brokerage Colmex is in the process of acquiring the clients of Israeli peer Smart Capital, online finance media Finance Magnates reported on Wednesday, citing company officials on both sides of the deal. The Israeli company decided on the move in response to the recent regulatory amendments regarding the forex market in its domestic country.
“Smart Capital and Colmex have indeed signed a cooperation agreement, according to which Smart Capital will direct its Israeli clients to Colmex for trading activity,” Colmex said, as quoted by the media.
The financial parametres of the deal were not disclosed. Smart Capital’s clients are expected to be merged to Colmex within days.
“A deal to merge Smart Capital and Colmex has been signed today. As part of the merger, the clients’ activity and some of Smart Capital’s employees will be integrated into Colmex. The decision on this move emanates first of all out of business considerations and second of all out of the perception that we have products that complete Colmex and vice versa,” Smart Capital CEO Itzik Noy said.
“There is not enough space in Israel for too many firms that offer limited services, and not a complete variety of services,” according to Noy. “It is right to merge companies that have diverse trading activity, as far as recruiting clients is concerned, as this brings good high quality clients that want to trade in the international market.”
The Israel Securities Authority (ISA) recently banned binary options tradind and imposed strict regulations on trading in forex.The new legal framework forbids forex brokers to provide bonuses to their clients and to offer leverage of higher than 100:1 for forex pairs and gold, 40:1 for equities, and 20:1 for other tradable instruments. In addition, deposits are allowed only via bank and wire transfers, but not by bank cards.
Colmex holds a license by the Cyprus Securities and Exchange Commission (CySEC), which allows it to operated in all countries of the European Economic Area (EEA). The broker offers trading in forex, contracts for difference (CFDs), stocks, fixed income, futures, commodity cfds, etfs, options and other derivatives via several trading platforms – Colmex ProTrader, Colmex WebTrader, Colmex Desktop Pro, Colmex MT4 and Colmex MobileTrader.
Source: Finance Magnates