Plus500 has secured a new North American license as part of its ongoing expansion strategy. The Israeli broker has received authorisation from the Canadian Investment Regulatory Organisation (CIRO), which will allow the firm to offer its CFD trading platform in Canada.
This is another step in the company’s North American expansion plans as Canada offers more business and trading opportunities for Plus500 compared to the USA.
One of the most obvious differences is that OTC derivatives trading by retail clients is permitted in Canada, but products like CFDs on equities and indices are strictly off limits to private investors in the USA, which is very much an on-exchange environment.
Plus500 & CFD trading in Canada
Having established a business in the US, it seems logical for Plus 500 to expand across North America, particularly into markets where its core products can be traded by retail clients. Who in turn may also be interested in Plus 500’s on-exchange futures and options offering in the USA.
The Canadian license is part of an ongoing expansion strategy at the firm. Since 2020, Plus500 has entered Japan, secured US market access, obtained UAE authorisation, and established its Seychelles offshore operations.
The firm has also acquired Indian broker Mehta Equities, a move designed to target India’s army of retail options traders.
Plus500 CEO David Zruia emphasised the significance of this authorisation, highlighting plans to deploy the firm’s proprietary technology platform to serve Canadian traders.
Saying that:
“The company views this as a natural progression of its strategy to penetrate new jurisdictions while developing innovative products for enhanced customer engagement.”
While the regulatory environment in Canada is favourable, Plus500 will still need to establish its brand identity in a competitive marketplace and adapt its technology and customer service offerings to meet local market expectations and compliance requirements. Though none of this should prove insurmountable.
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