ATFX, a globally-regulated and award-winning fintech broker, has set its sights on Africa.
To expand its operations on the continent, ATFX acquired Khwezi Financial Services (FS), a South African forex and CFDs broker based in Cape Town. With an established clientele and a commitment to customer service, Khwezi FS was one of the first non-bank, financial services provider in the country to be licensed as an over-the-counter derivatives provider (ODP).
Now operating as ATFX Africa, the local brokerage forms part of ATFX’s global business led by Linton White, ATFX’s new regional head, and Monty Barnard, ATFX Africa’s COO.
Local expertise, global knowledge
“We’re driving ATFX in South Africa. We have a big task ahead of us but we’re very excited,” says White.
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ATFX started in 2017 and currently has 23 locations around the world in countries such Australia, the U.K., Cyprus, Malaysia, Jordan and Dubai. It has also been ranked the fourth largest broker of its kind in terms of the total volume of contracts for difference (CFDs) and derivatives traded on the MetaTrader 5 trading platform.
“We’ve got good coverage on most of the continents and a key eye on expansion,” says White.
Tasked with establishing ATFX’s footprint in South Africa and with a goal of moving further up the continent by 2025, White explains that ATFX was particular about what they were after when making the South African acquisition. Being fully-licensed was the first step, but ATFX also required local knowledge and expertise from the people who were part of those companies.
“That’s what sets ATFX apart from a lot of the other global brokers,” says White, adding, “They’ve focused on maintaining the local presence, knowledge and expertise instead of bringing in an international template and applying that to a local business.”
White believes that the autonomy ATFX has given to their Africa-based team will be paramount to the success of the business.
“It’s not a straightforward process. When you’re a key part of South Africa’s financial infrastructure, you need the regulator’s approval on anything that you do,” says Barnard. “That said, it was and still is a very exciting process. The team is growing and we’re expanding quickly.”
Unlike other acquisitions where a business is bought out and the staff let go, the entire Khwezi team moved across to ATFX, which was an important part of the deal.
“We’ve simply built on from the great team that we originally had,” says Barnard, who also shares that one of the highlights of being a part of ATFX was the annual dinner in Vietnam earlier in the year.
With over 700 employees worldwide, seeing the global team together was not only an unforgettable experience but a reminder of what makes ATFX different from its competitors.
“There’s a lot of copy-and-paste-style businesses and brokers in our space and they all tend to focus on what the competition is doing in order to present themselves as a competitor,” says White.
“But ATFX is a completely different business and we’re approaching the industry with a unique perspective because we don’t just want to be seen as another competitor.”
The perfect match
From ATFX’s client-centric approach to maintaining the highest standards of regulatory compliance, White likens their customer service to what you would receive from a personal banker – professional, personalized and respectful.
“… [to] not immediately go for the jugular and get deposits and force transactions, it’s more about taking care of the clients and making sure that their needs are met rather than trying to force them to meet ours,” says White.
“It’s one of the reasons the two brands, Khwezi and ATFX, came together. The focus is the client. It’s all about treating them fairly,” adds Barnard. “This industry can be cutthroat and sometimes the consumer comes second. We want to change that; we want people to trust us while we accommodate all of their requests quickly.”
Being one of the first non-bank financial services providers in South Africa with an ODP license, ATFX could also be assured that Khwezi FS aligned with the global standards of regulatory compliance and security that the company upholds.
Acting as an agent of one of the five major banks in South Africa, ATFX Africa is allowed to open segregated bank accounts for clients which means, from an administrative point of view, the funds are kept completely separate from the fintech broker’s day-to-day accounts.
“Investors want to know that their money is going to be safe and this gives our clients an extra layer of security,” says Barnard.
“We also work quite closely with the banks, sharing FICA processes and they conduct annual checks to make sure we’re doing things the right way.”
As for the services ATFX offers, they provide a comprehensive range of financial services in Africa such as trading in currencies and commodities like gold and oil, and indices like the S&P 500, Dow Jones and NASDAQ. In South Africa, ATFX uses MetaTrader 5 which is one of the most popular trading platforms among brokers worldwide.
“The ODP license is fairly new as there are only 11 of these licenses locally which have been awarded to non-banks. These licenses determine what we can sell and are determined on aspects like capital adequacy and manpower,” adds Barnard.
“But with the ATFX acquisition, there are big plans for Q3 and Q4 of this year regarding what we can add to those products such as shares or crypto. The sky’s the limit.”
Being the fourth largest brokerage, globally, comes with other benefits like a big liquidity pool which means competitive trading fees – an advantage in a high-risk trading environment.
Giving back, moving forward
Handling billions of dollars in transactions every day, it’s easy to assume that ATFX would be purely focused on maximizing revenue but the fintech broker’s extensive educational resources demonstrate its commitment to prioritizing clients’ needs and long-term success over short-term profits.
“In Africa, there is major opportunity for a broker who is legitimate, trustworthy and focused on educating those who need access to these kinds of resources,” says White, who adds that they’re also in talks with some of the larger institutions across South Africa about scholarships and internships going into 2025.
Globally, ATFX is also the official partner to the Duke of Edinburgh Cup, an international event that raises funds for children in need.
“It’s not just about making money for the business, but it’s about how you provide and give back to the community,” says White. “Personally, and professionally, you need to treat everyone with the same level of respect.”
For both White and Barnard, this is only the beginning. With all the noise around regulations, they believe that ATFX is the broker that everyone has been waiting for.
“Being able to represent ATFX in Africa is not only exciting, we feel privileged to work for them,” says Barnard. “There’s definitely a need for growth in the South African brokerage space and we’re poised to be that entity going forward.”
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