Tickmill, a forex broker regulated in the Seychelles, said on Wednesday its subsidiary Tmill UK Ltd. has obtained a license with the UK Financial Conduct Authority (FCA).
The license is active since 29 July, 2016, according to the regulator’s website.
The UK business will be headed by Duncan Anderson, who has been appointed as CEO of the recently-licensed entity.
“The FCA authorisation marks a new chapter in our history as we expand globally,” Anderson said. “There is now a clear path to enter the European market with a firm commitment to put our clients’ interests at the heart of our operations and to deliver brokerage services of outstanding quality,” he added.
The UK is the world’s largest forex hub, accounting for some 37% of the world’s forex trading volumes. An FCA license grants access to the rest of the markets in the European Economic Area (EEA), or at least for now. The country decided earlier in 2016 via a referendum to leave the EU and it is not certain whether it would retain single market passporting rights.
While some forex brokers just now obtain a UK license, most market participants are looking for alternative regulatory authorities. For instance, LMax Exchange has expressed intentions to begin regulatory filings in Ireland in the beginning of 2017.
Tickmill was set up in 2014 and also holds a license by the Financial Services Authority (FSA) of the Seychelles, which is known as an offshore forex destination. It is an electronic communication network (ECN) and no-dealing desk (NDD) broker, which offers trading in diverse financial instruments, including currency pairs, contracts for difference (CFDs), stocks, indices, commodities, and precious metals.
The broker is actively present in Asia, the Middle East and Africa. It has a live client base exceeding 20,000 clients and processes more than 3 million trades a month.