AxiCorp said on Monday its forex and contracts for difference (CFDs) subsidiary AxiTrader has not been affected by the adverse market conditions and it is continuing its business operations as normal.
The UK voted on Thursday to exit the European Union (Brexit), causing significant market volatility and uncertainty. Ahead of the referendum, the broker cut margins on GBP pairs and some other tradable instruments as a precautious measure to minimize client losses.
“We’ve known for a long time that this referendum was coming and that it had the potential to impact currency markets significantly,” said Alex Mackinnon, AxiCorp general manager. “That’s turned out to be the case, but because of the preparation we’ve done to manage market risk and communicate those messages through to our Clients over a period of several weeks, both our company and Clients have done a fantastic job of weathering the storm so far,”he added.
AxiTrader warns investors to remain cautious even after the referendum results have become clear since “the ramifications of the result continue to filter through the markets”.
“The currency markets were first to feel the full effects of Brexit, so I’d like to thank our Clients for taking a largely responsible approach during such a tumultuous time, “ Mackinnon said. “The overall risk management was terrific. By and large there was no need for us to take any drastic measures to protect our Clients from adverse trades – they’d heeded the warnings and stayed clear of the markets during the major volatility,” he noted, adding that this is a big event and is expected to have a lot more consequences for traders.
AxiTrader is a brand name of UK-based AxiCorp Ltd., which is part of Australia-based AxiCorp Financial Services Pty Ltd. The broker is regulated by the UK’s Financial Conduct Authorities (FCA) and the Australian Securities and Investments Commission (ASIC). The broker operates offices in Australia’s Sydney, UK’s London, Moldova’s Chisinau, UAE’s Dubai, and Saudi Arabia’s Riyadh and Jeddah.
AxiTrader serves both retail and institutional clients in more than 150 countries. It offers trading in more than 80 instruments including forex and CFDs on bullion, metals, commodities, oil, and indices. The broker offers two types of accounts – MT4 Standard and MT4 Pro.