Swissquote has been one of the main pioneers in the cryptocurrency space by delivering to its clients Bitcoin trading that differs materially from the bulk of broker offerings out there. As a result, the company is reporting that cryptocurrency trading has been one of the factors that led to its strong performance in 2017.
Increased forex trading and trading services of the Swiss bank are still the main drivers of growth in the second half of the year. Overall, the company is reporting that it expects to outperform its own forecast for the full-year period by CHF 8 million.
Swissquote estimates its revenues for 2017 to have reached CHF 186 million. This figure would yield a total of CHF 45 million in pre-tax profits.
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BTC is THE New Accounts Driver
With the unique access that Swissquote set up for its clients that wish to buy Bitcoin all the way back in July, the company managed to ignite the interest of its clients at the right time. In contrast to many brokers that offer only CFDs, Swissquote chose to launch a product that delivers actual ownership of coins.
The approach has proven to be way more effective than the offering of CFDs trading, where a number of brokers suffered significant losses in the final quarter of the year. One-sided exposure has prompted IG Group to become one of the largest holders of Bitcoin futures contracts on the CМЕ.
Swissquote chose to partner with the Luxembourg-regulated crypto exchange, Bitstamp, and provide to its clients access to the physical market.
The company explains that the strong interest in cryptocurrency trading was the main driver behind new account openings. To date, the company is still processing account opening applications in the thousands. Compliance requirements at the Swiss bank are up to high standards which at present is causing some delays in the opening of new accounts.
The firm outlines that it is strongly committed to eliminating the backlog of new account opening applications. Back in December, the company announced that it will offer to its clients four new cryptocurrencies for trading.