Brokers always watch the potential of other countries to move their office in for the purpose of lower costs, potential of human resources or easier access to their customers. In the case of Golden FX, this opportunity came from Cambodia.
Cambodian watchodg – Securities and Exchange Commission of Cambodia (SECC) – provides Derivative Broker (DB) licenses, recently issuing its first one in the country.
Golden FX Link became the first company that got an official license to operate in the country. Finance Magnates reached out to the company to find out more about the regulatory environment and the company.
Commenting on the regulatory environment, the business managers of the firm Michelle van Sreytouch and Cheng Hawk Cheung explained: “Many investors here do not really understand derivatives trading. Currently, we are trying to convey and share the knowledge and techniques of derivative trading to individual investors, banks and other financial institutions.”
The company has received a central counterparty license and a derivatives broker license. The firm has to adhere to substantial capital requirements in order to operate as a market maker. As a central counterpart, Golden FX Link parks $5 million at the National Bank of Cambodia and another $250 thousand dollars for its derivatives broker license.
Every company that is willing to get regulated has to maintain compliance with the SECC on human resources, with the broker’s representatives having to go through an exam and obtain operational licenses. Brokers also need registration at Cambodia’s Ministry of Commerce and at the General Department of Taxation in the country.
“Cambodia is just our beginning step, we now have business partners from Japan and China willing to invest in the local market. We aim to attract more investment from foreign countries and play as a derivative trading ambassador in Southeast Asia,” the management elaborated on the plans of Golden FX Link.
The process of applying for a license from the moment of the application being accepted by the SECC takes around 3 to 4 months.
Elaborating on the product mix offered in the country, the team from Golden FX Link shares: “Nowadays the popular trading products are precious metals like gold and silver; some major currency pairs like AUD/USD, EUR/USD, GBP/USD, NZD/USD, USD/JPY, and USD/CHF, etc. In the very near future, we will have crude oil as our newest trading product.”
