SquaredFinancial adds soft commodities to its multi-asset range of instruments
Unlike many other commodities, soft commodities normally have a wider production base, not dominated by one or two countries who look to control supplies. This means there is often greater consistency in pricing, with markets influenced by weather and geopolitical events rather than economic and financial performance.
The fintech led brokerage and global investment firm SquaredFinancial has announced that it will now be offering soft commodities as part of its full range of tradable assets.
Wheat, Soybeans and Corn are now available on the SquaredFinancial platforms. These are leading soft commodities which offer liquid and dynamic tradable assets and provide uncorrelated investment opportunities.
Husam Al Kurdi, Chief Executive Office at SquaredFinancial, commented: “When we re-launched SquaredFinancial I promised our clients we would continue to develop the products and to give them an expanded range of high-quality investment opportunities. We are keeping this promise with the launch of soft commodities trading in conjunction with our other instruments. For all new products, our development team looks in detail at the trading and the risk profiles so that we always give investors a reliable and transparent asset. Used in conjunction with FX, energy or precious metals it allows risk to be managed and hopefully, returns maximised.”
Unlike many other commodities, soft commodities normally have a wider production base, not dominated by one or two countries who look to control supplies. This means there is often greater consistency in pricing, with markets influenced by weather and geopolitical events rather than economic and financial performance.
“Over the last six months, we have seen a steady increase in the number of people using our services to manage their investments. By trading a range of assets, they can spread market exposure and use their knowledge of different asset classes to achieve their investment goals. We offer the training and support to help our clients take financial decisions and take advantage of the ongoing global volatility.” added Mr Al Kurdi.
SquaredFinancial has offices in London, Cyprus, Seychelles, Hong Kong, and Geneva, allowing it to provide global solutions for a rapidly changing investment market. With a focus on new generation traders and investors who want an easy access, sophisticated, global gateway, providing flexible trading of a full range of financial assets and products.
SquaredFinancial is indeed concentrating on improving the trading environment in all areas, including a very welcome initiative which the company has been undertaking in order to solve custodian banking issues for FX brokers.
Back in June, FinanceFeeds spoke to Mr Al Kurdi about his specialist solution. He said “One of the main problems facing existing and new brokerages is the setting up of bank accounts to manage payments, in and out, of the business. Without transparent and efficient payment solutions brokerages struggle to provide safe and secure services and meet regulatory requirements, so this is a major issue.”
“Most tier 1st tier banks no longer offer services to brokerages. This has been down to a number of factors, including changes to international regulation, such as the introduction of Basel III, data security and identity verification and compliance procedures; poor practices in some brokerages which have increased risk for the banks; and a lack of resources and expertise in the tier 1 banks to understand the brokerage model” said Mr Al Kurdi.
“This has pushed brokerages to use 2nd or even 3rd tier banks which often require brokerages to use a complicated series of middlemen to be able to access the payment services they need. This is not good for clients or brokerages or regulators, so there has to be a better answer” he said.
:At SquaredFinancial we are in advanced negotiations to offer a digital banking service specifically design for brokerages. We have taken the view that as an experienced broker we know the sector, the requirements and the issues and so are very well placed to be able to structure the banking services other brokerages need. We have the knowledge and ability to cover KYC and AML requirements in the sector and if brokerages can access high-quality banking service” he concluded.
Quite right too. Today’s addition of soft commodities to the company’s multi asset trading remit, plus its commitment to providing dedicated services for FX brokerages at a time during which they are most required are good things indeed.
