ThinkMarkets, a provider of online trading in financial markets, announced on Wednesday that it will offer bank-like level of safety of $1 million (over R14.4 million) for traders on its platform.
It is the first SA provider to offer capital protection on funds invested in CFDs.
This means that South African traders will benefit from up to $1 million protection on their monies in the case of ThinkMarkets.com going into administration.
The insurance is underwritten by Lloyds of London, one of the world’s oldest and leading insurance and reinsurance marketplaces.
This means that if both, ThinkMarkets and the insurance broker, were to default, Lloyds of London compensates the clients under its Central Fund.
“Our company’s ethos is built on sound regulations and the protection of our clients’ money and hence the $1 million cover reinforces that ThinkMarkets is one of the safest places for CFD traders.,” said Nauman Anees, CEO and Co-founder of Think Markets.
In addition to the safety of funds, ThinkMarkets will offer a number of South African and international products including single-stock CFDs, stock indices, currencies and commodities on its award-winning trading platform.
The local business will cater to the needs of South African traders and offer ThinkMarkets’ wide product range.
ThinkMarkets has been recognised as a leading, award-winning FinTech provider. It was founded by two Chicago-based entrepreneurs nearly a decade ago that were keen to disrupt the legacy brokerage sector. The two believe in automation and digitisation to provide users with a seamless and hands-on trading solution.
The business is headquartered in Australia, with offices in the UK and Europe was recently awarded a licence by the Financial Sector Conduct Authority (FSCA) to offer electronic financial trading services to South African investors. It has been offering client money insurance in the UK which now extends to South Africa and Bermuda.