IT in Banking

UK-based online trading firm Infinox sets up SA office

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Dany Mawas, regional director at Infinox.
Dany Mawas, regional director at Infinox.

UK-based online trading firm Infinox has expanded into SA, after recording a 925% surge in trading volumes across Africa in 2020.

Founded in 2009, Infinox offers customers and businesses trading services in a range of asset classes. The contract-for-difference and forex broker helps investors gain access to markets so they can trade forex, stocks, indices, commodities and futures, using its Web or app-based trading technology.

It has set up two local offices – in Cape Town and Johannesburg – and currently employs more than 40 people. Infinox says it is looking to expand further, with a recruitment drive in several areas of the business.

According to the company, the surge in investor demand came as volumes traded worldwide on Infinox jumped 28% to hit $553 billion in 2020 – African and Latin American investors were among the keenest to capitalise on 2020’s volatile market conditions and potential for big returns.

Dany Mawas, regional director at Infinox, says online trading is continuing to increase in popularity as a result of the COVID-19 pandemic, with people seeking additional and convenient ways to supplement their incomes.

“Combined with the rise of the fourth industrial revolution and an uptick of digitally-savvy millennials in SA, more people are seeing the potential that online trading offers.

“At Infinox, we have a strong drive to bridge the knowledge and accessibility gaps between bankers in major global financial hubs and the everyday person on their mobile device. It is for this reason that we recently launched our IX Social app.”

The IX Social mobile app puts the power of trading into the user’s hands by allowing traders access to Infinox services, trade experts, the trading community and to engage in market research.

The app also allows users to auto-copy top trading strategies, with options to source the most followed, best live trades, most copied trades and the most profitable trades − all instrumental in building trading acumen.

With a presence in 15 countries, Infinox is regulated by SA’s Financial Sector Conduct Authority, and says it has committed to offering its local clients on-the-ground support.

According to Mawas, SA has huge potential as an emerging market economy. It has a highly developed economic infrastructure and an educated population with lofty ambitions.

The company has created more than 3 500 active accounts since inception, with SA accounting for 4% of them.

“Our experience tells us that by building local teams, we can better understand those regions and markets, and better service clients. This is important as each market is unique,” explains Mawas.

“While our expansion into SA also allows for job creation, our commitment of being a real organisation run by real people with on-the-ground presence lends to our principle of employee retention and growth. Building a team in two of the most vibrant cities in SA would help connect to the local market in a way online businesses cannot. This, coupled with Infinox’s ambition to bring online financial trading to the masses, meant SA was an ideal place to expand and grow.”

To assist beginner traders in getting started, Mawas points out that when developing a strategy, it is vital to spend time researching and learning what works best.

“The more you perfect managing your risk, the better you become. One word of advice would be to start simple and keep it simple.”

In terms of online trading fraud, the company says while the onset of the COVID-19 crisis increased cyber crime, protecting its customers has always been a priority.

Security experts have in recent months been warning that many online traders are being swindled out of their hard-earned cash by unregulated and illegal online trading brokers, which promise them a good return on their investments.

“Preventing online fraud has always been of paramount importance to Infinox. The restrictions placed on countries due to the COVID-19 pandemic have seen a huge increase in online activity, and unfortunately, that has coupled with online fraud attempts. To combat all fraudulent activity, Infinox adheres to strict ‘know your customer’ protocols from leading regulatory bodies to protect all clients,” says Mawas.

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