LeapRate Exclusive… LeapRate has learned that Cyprus financial regulator CySEC has just handed out a CIF license to another Retail FX broker, called Exclusive Capital.
Who is behind Exclusive Capital?
What are the company’s plans?
Why did they seek out a CySEC license, at a time when the regulator has tightened the rules around Retail FX and CFD brokerage?
LeapRate spoke exclusively with UAE-Canadian businessman and Exclusive Capital (no pun intended) CEO Sherif Sanad. Here is what he had to say.
LR: Hi Sherif, and thanks for joining us today. Please let us know a little more about Exclusive Capital.
Sherif Sanad
Sherif: Exclusive Capital is the trading/commercial name of Exclusive Change Capital, a company that is licensed and regulated under CySEC authority.
Exclusive Capital’s vision is to be one of the technology providers pioneers in the financial markets, with a very clear vision to develop new technology concepts as well as new markets.
The company is backed up by the Madarasz family from Hungary which owns Exclusive Change with more than 450 money exchange offices and has been in the money exchange markets for the past 27 years covering Hungary, Croatia, Serbia, Bosnia, Austria and currently adding more exchange retail offices in the Eastern European Countries.
LR: How did you decide to open an operation in Cyprus, and apply for a CySEC license?
Sherif: Since our sister company Exclusive Change-Hungary has more than 450 exchange offices in Eastern Europe, CySEC was our best option to be very close to our potential markets as well as clients which will allow us to offer our bespoke services to all of our clients. We have considered the time and locations factors with plans to open a branch in Hungary to be closer to our potential clients and partners, with plans to open more offices as the company grows to cover new and existing regions.
LR: What will be the key focus areas for Exclusive Capital, both in terms of product and geography?
Sherif: Exclusive Capital is an STP broker and therefore our main key is to offer a very solid technology to our potential clients which will enable them to trade in a very reliable and trustworthy environment, also assuring them that they have a broker who will always stay on their side.
Basically, the company is looking to introduce all the FX and CFD financial instruments. However the company management will keep a very close eye to our potential clients needs whenever asking for additional financial instruments and or particular services.
Geographically, the company will establish its first own office in Hungary to utilise the extensive presence of its sister company Exclusive Change hoping to serve and offer our services to the eastern European countries, yet the company has very strong ties and relationships with some of the most advanced business developers in the Middle East, South America and Asia.
LR: The Retail FX space is ultra competitive, with CySEC’s new guidelines limiting leverage and banning bonus payments making it even harder for smaller and startup brokers to gain a foothold. What’s your view of the opportunity?
Sherif: We have seen a lot of changes as well as endless reforms within the CySEC authority recently. Actually we see it very promising as we think it is directing the market towards the STP model where the clients will finally have their chance to feel and experience the real markets conditions and rules.
We think that this is a new era for the online brokers and the competition will be very innovative and harder. The CySEC recent changes have affected the clientele of this industry and we started to see more and more professional clients, fund managers and HNW who are willing to learn this market very well before stepping in.
LR: What else can we expect to hear from Exclusive Capital in the coming months?
Sherif: Exclusive Capital will launch its online services very soon, and our first deliverable step would be our first presence in Hungary.