Polish brokerage group XTB announced on Friday that it has acquired two new licenses in the United Arab Emirates (UAE).
The Category 1 and 2 licences are an upgrade for the broker, which was previously operating in the country using a Category 5 license.
For brokers, Category 5 licenses are a way of marketing in the UAE and then introducing clients to an offshore entity.
A Category 1 license allows firms to hold client funds, deal in securities, and act as market maker for trading in contracts for difference.
Although lots of brokers are set up in the UAE, very few actually have a Category 1 license. Plus500, Exness, Deriv, and Equiti, for example, all have the license.
The Category 2 license, which XTB has acquired, is more unique. It will allow the company to offer managed portfolios to clients.
This is likely to be along the lines of what IG does in the UK with its Smart Portfolio services.
