ADGM-licensed digital wealth manager rolls out platform for experienced traders

Exinity Trader Pro is targeting traders in the GCC who want to switch their broker because of poor service or high charges

Abu Dhabi Global Market. Authorities in the UAE and the UK have finished a two-week programme focused on tackling financial crime. AFP

Digital wealth management company Exinity Middle East, which has been licensed by Abu Dhabi Global Market, rolled out a digital platform for experienced traders in the UAE to tap into the country’s growing segment of affluent investors looking to build their wealth through online trading.

Exinity Trader Pro, which will initially be available in the UAE and wider GCC, aims to offer sophisticated investors the benefits of risk-driven trading, the company said in a statement on Wednesday. It is targeting traders who want to change brokers because of poor service or high charges, it added.

Retail investors are increasingly seeking direct access to markets with the help of technology, leading to a surge in popularity for zero-commission trading platforms such as Robinhood, eToro, Interactive Brokers and the UAE's Sarwa. Demand for online trading platforms also jumped during the Covid-19 pandemic due to monetary easing by the US Federal Reserve and other central banks, giving people more money to invest during pandemic-induced movement restrictions.

"When taking positions in financial markets and products, there is always an element of risk associated with any investing or trading decision," Jason Hughes, commercial director for Mena at Exinity, told The National.

“Rather than shying away from that risk, we believe it’s better to educate and embrace the risk associated with trading and taking positions," he added. "Make sure you have the tools available to manage that risk and be aware of the potential pitfalls of your positions and trades. Throughout our platform and education tools, we put risk at the forefront of our discussion rather than shy away from it to help you become a better, more successful and long-term trader.”

In October last year, the UAE Cabinet approved a new law regulating the country's growing wealth management sector. The Federal Decree Law on Financial Covenants, which excludes financial free zones, provides a legislative framework that aims to boost the performance of the wealth management sector, enable a competitive environment, protect investors and attract foreign investment.

The Exinity Trader Pro account, which is regulated by the ADGM’s Financial Services Regulatory Authority, will require traders to deposit a minimum amount of $10,000, according to the company website. The account is browser-based, but is also mobile-friendly, the company said.

Exinity Trader Pro users will have access to global markets, including shares, FX, indices and commodities, from a single account using the MetaTrader platform and can benefit from low transaction costs for more profitable trades, the company said.

The service will charge $0.20 commission per lot on FX and CFD trades with zero spreads and offer commission-free trading on US shares, the statement added.

Traders using the account will also receive expert analysis and support from an account management team in the UAE, according to the statement.

Meanwhile, Exinity Group will also launch a mobile app called Exinity World for novice traders in the Mena region in the third quarter of this year, Mr Hughes added.

Referring to the explosion in demand for online trading apps among retail investors, he said: “We will continue to see people use their apps and digital platforms to build and grow their wealth and plan for their future.

“Mobile and internet development of trading has been going on for the past 20 years. The democratisation of financial market news and access to online trading platforms have made it more accessible,” Mr Hughes added.