How changes in regulation will impact recruitment for FX brokerages
This is a question every Recruiter, HR Manager and CEO is asking themselves. If we break down this article down into 3 Large Forex Markets, the UK (FCA), Australia (ASIC) and Cyprus (CySEC), we can clearly access and ensure that every reader of this article is prepared for their Broker to be at the forefront of this Recruitment Boom.
Stating with the UK Forex Market, in 2018 pre MiFID II we saw a large increase in the need for experienced Compliance professionals with the average salary ranging between £120-140k per annum for a Head of Compliance CF10/11 and the need for Sales professionals with an existing book of clients of IB’s and partners increase.
However, as time has progressed UK Brokerages have reduced their sales department, constructed tight management teams and have began to rely on the necessity of partners, affiliate and IB’s to bring business, reducing in the number of ‘Powerhouse’ Brokerages.
Dan Moczulski, CEO of Star Financial Systems, a firm who supply brokerage software to the industry globally comments “We tend to sell to growing brokers who expanding their business, and so naturally our client mix migrates to the territories and firms that has been doing well. Over the last 4 years regulation has been dictating which territories have been doing well.”
On Wednesday 1st July, the FCA released an article confirming that the Financial Conduct Authority (FCA) is permanently on-boarding the ESMA intervention restricting the sale, marketing and distribution of CFDs and CFD-like options to retail customers to a leverage of 30:1.
As a result this gives little hope of an increase in volumes unrelated to volatility. Overall, the UK is prominent figure in the FX Space but like most markets is currently experiencing a slight dip in Company growth, with regards to headcount.
Whilst the FCA and ESMA were restricting Retail Brokerages, ASIC monopolised on this opportunity and attracted a lot of Global Retail Investors. This resulted in a surge in recruitment with the market well on the way to be a safe haven for Global Retail Investors. However, with ASIC deemed to be following in the same footsteps as ESMA, this may reduce in Brokers being more conscious of their Regulatory situation and manage their headcount accordingly.
Cyprus, the current home of retail Forex, is relatively consistent following the ‘dark days’ of Binary Options. It still draws the attention of several Global Brokerages like London Capital Group, Tickmill and ForexTime all of whom have operational offices there.
Cysec, the Cypriot regulator has recently indicated a willingness to offer a third tier of investor, slightly more experienced than retail and enjoying les draconian leverage limits. This may boost volumes, and therefore recruitment. The 300 Days of Sun a year, reasonable cost of living and large talent pool remains the go to location for Forex and those looking to get into the industry.