TradeInformer understands that retail brokerage group AvaTrade has become the latest firm to start cutting staff.
A source familiar with the matter said the firm is making cuts to headcount globally, with teams in places like LATAM and Poland impacted.
The extent of the cuts is unclear but it is in line with what we have seen in the wider market.
Firms like Tradu and eToro have made cuts to staff. At the same time, we’ve seen two brokers – SquaredFinancial and HTFX – hand back their Cypriot regulatory licences.
Its plausible there are idiosyncratic reasons for some of these cuts that are unique to each firm.
However, what may also be happening is that firms are getting hit by gold trading.
Although some corrections towards the end of last year may have provided some respite, brokers and prop firms are likely to be suffering from lopsided client flow, which is difficult to monetise.
