According to a new update from Investment Trends, a research firm with operations in the U.K. and Australia, the global market volatility already underway in 2016 will benefit the UK over-the-counter (OTC) leveraged trading industry. This forecast follows the company’s 2015 trading report that surveyed over 11,000 traders and investors in the UK across spread-betting, contracts for difference (CFDs) and foreign exchange (FX) traders.
The update also noted that providers need to defend their existing client relationships as actual and intended account switching across brokers was on the rise, and that high client satisfaction and strong brand positioning will be key to winning new opportunities.
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Commenting in the update, Investment Trends Senior Analyst Uwe Helmes said: “Switchers represent a tangible opportunity for every provider in the market, considering the large number of those who want to make a move but are yet to decide where to go.”
Investment Trends noted that CMC, OANDA and SAXO rated highest in client satisfaction across the spread-betting, CFD and FX trading segments, and that the highest increase in brand awareness came from Plus500, followed by FXCM.
“High volatility usually creates an environment that is conducive to leveraged trading, and this was evidenced in the 2015 rebound of the UK market,” said Mr. Helmes in the update. “The rout on the Chinese market which began in mid-2015 and continued in January 2016 has increased market volatility globally, leading us to think that the UK leveraged trading market could have another good year,” he concluded.