Pepperstone Gets BaFin Licensee to Operate In Germany

Melbourne-based broker Pepperstone has started operating in Germany after receiving approval from Germany’s financial regulator BaFin.   Pepperstone will now operate under its new subsidiary Pepperstone GmBH, nearly four months after receiving approval from BaFin. Its services will focus mainly on the DACH countries like Austria.

The move is part of Pepperstone’s ongoing agenda to expand its financial instruments services into foreign markets. Pepperstone’s services include commodity trading, forex, shares, indices, currency indices, and cryptocurrencies.

In similar Pepperstone news, the online broker also recently acquired financial services licensing to launch operations in Dubai and Cyprus. In East Africa, the broker set shop in Kenya to join the country’s forex trading market and expand to the neighboring markets.

Pepperstone stated that it’s entering sophisticated markets such as Germany and Austria to offer its clients access to coveted services.

“Best execution and pricing and combination with an outstanding service to help our clients to master their trade.”

Tobias Reichert, Pepperstone GmbH’s General Manager said that it has already launched an expert team in Germany. The team will help the brokerage to launch operations smoothly and accomplish its commitment to nature their clients’ trading journeys.

Pepperstone Assessing Brexit’s Impact

The move to expand into BaFin’s regulation territory comes as Pepperstone prepares for Brexit’s effect on its trading operations. Together with other affected brokers, Pepperstone is considering establishing new bases in Europe, as the UK leaves the European Union.

Brexit is likely to lead to significant changes in Europe’s financial regulatory framework. In particular, the Financial Conduct Authority (FCA)-regulated firms will experience more friction while trying to access the European market. The FCA currently regulates approximately 60000 financial services operators and nearly 49,000 markets.

In the current transition deal, cross-border financial services operators are able to continue operating until the end of 2020. However, the current disagreeable atmosphere between leaders involved in the Brexit plan has left a lot of uncertainty.  The indecision is likely to cut off the rest of EU clients from the UK-based markets once Brexit is complete. The chances of this happening will be higher if no proper contingency plans are implemented.

Pepperstone said that despite the uncertainty, its foothold in Germany is a step towards the upcoming EU without the UK.

“Thanks to our team in Germany, Pepperstone can establish even closer ties with our clients in the German-speaking world.”

The firm also recognized Germany as one of the most exciting countries in the European Union.

“We look forward to bringing our expertise and technology to the local investors.” Pepperstone’s Group CEO Tamas Szabo said.