Exclusive: Importance of asset class diversity amplified as FinFX launches CFDs to global audience

The necessity for retail electronic brokerages to diversify their product range to include a greater number of asset classes in addition to spot FX has become of paramount importance during the course of this year, and one such dynamic is the exporting of contracts for difference (CFDs) away from their native homeland of the United Kingdom.

Until recently, CFDs have been the preserve of British brokerages which offered them to a domestic customer base, in some cases for over 30 years, via proprietary platforms designed specifically for that purpose, meaning that spot FX trading via MetaTrader 4 was notable by its absence in the Land of Hope & Glory.

Now, the tables have turned and the British CFD model has become favored by overseas brokerages wishing to offer them to a global audience.

Finland’s FinFX is the latest to go down this route, launching a range of CFDs today to its international audience, and in order to provide a full insight, FinanceFeeds spoke to Stan Klebaner, Chief Business Development Officer at FinFX, who explained in detail.

“We are launching CFD’s as a complimentary derivative offering to FX whereby clients will be able to trade both asset classes side-by-side on MT4. Clients will be able to cross-margin both F/X and CFD’s from a single trading account” Mr. Klebaner explained to FinanceFeeds.

“The first phase of implementation will focus on CFD Indices as a means to offer a broader set of financial instruments to our trading audience. Our offering will provide immediate exposure to major global markets including, UK, US, Europe, Australia as well as Asia.”

With regard to the reason for the company going down the route of offering CFDs, Mr. Klebaner said “The justification behind coming to market is twofold. Our existing client base has expressed a desire to trade CFDs/”

“The brokerage landscape is shifting towards a multi-asset model and we felt that the timing was appropriate for FinFX to follow suit. The company is also expanding into markets where CFD’s are a core product; our competitive commission, tight spreads and margins will allow us to capture market-share in said markets.”

“In terms of indices available as a CFD, we offer AUS 200, STOXX50, FCHI, GDAXI, J225, UK100, NDX, WS30, SP500, and we also offer UK Brent, US Crude, US Natural Gas as commodities which can be traded as a CFD” he said.

In conclusion, Mr. Klebaner explained “Our strategy to kick-start the CFD campaign is to cross sell to our existing retail clients, partners as well as white-labels. In addition we will seek to re-engage clients that are not active on the platform and use the new asset class as a retention tool.”

” Lastly, we are targeting B2B partners interested in sourcing FinFX liquidity, we feel that the addition of CFD’s will prove vital as a means of differentiating our offering” he said.