London Capital Group
(LCG) is making the transition from being a spread betting and
contracts for difference (CFDs) provider to becoming an
introducing broker. As part of the move, the LCG has tapped its UK-based rival, IG Group, as its first third-party trading platform provider,
the company confirmed to Finance Magnates
on Tuesday.
LCG Becomes an Introducing
Broker
Under the new
arrangement, LCG said it will focus on providing its clients with ‘boutique’ and
relationship management services while IG Group will
provide the platform, pricing and execution services. The firm also plans to onboard other ‘leading third-party platforms’ in the future.
Recent developments show LCG's transition plans have been in the works for months. In January, Dave Worsfold, Matt Basi and Stuart Dorward took over the management of the company as the Chief Executive
Officer, Managing Director and Head of Sales and Trading, respectively. In the following month, LCG announced that it had signed a new partnership deal with IG
Group to leverage
Leverage
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
Read this Term its technology. It also said it
will engage
other “industry leading providers”
as part of “the new evolution of LCG.”
“By partnering with IG
for the technology, pricing, execution, on-boarding and holding of client
money, we are free to re-shape the business to focus on service and
relationships,” Basi told Finance Magnates. “We’ve re-staffed the business
accordingly and are really excited about the team we’re building, all of whom
have deep experience and we’ve worked with before.”
LCG Says
Trading Industry Is ‘Overcrowded’
The switch in business
model occurred as LCG UK, which is owned by Charles Henri Sabet who controls Swiss firm Flowbank, suffered a decline of 86% in revenue during the fiscal year of 2021, owing in part to the
UK’s exit from the European Union (EU). The company was a part of the London Capital Group Holdings. However, Sabet acquired the UK-based spread betting and CFDs provider and separated it from London Capital Group Holdings which went into liquidation.
Following Brexit, LCG lost its passporting rights for operations in the
EU region and focused solely on the UK client base. However, its
sister entity LCG Capital Markets Limited is
based in the Bahamas and operates globally with authorization from the offshore
regulator.
“Our view of the sector
is that [the trading industry] is over-crowded with firms competing to be
counterparty to client trades and [to] risk manage their flow,” Basi explained. “We feel that for
clients to get the best outcomes, firms should focus on the value they can add
to the client trading experience.”
LGC Gives Deadline for
Account Closure
Meanwhile, LCG has said
its clients can open and close their trades, make deposits
and withdrawals until June 30, 2023. In a message sent out
to clients, the spread betting and CFDs provider noted that clients will be
given another period of four-week grace to close out any existing
positions on their LCG accounts.
Confirming the deadline to Finance Magnates,
Basi noted that the step is to help give its clients “appropriate time/notice
to make the transition and to handle the business change in an orderly,
professional way.” He added that “the next tranche of clients [will be
contacted] in due course.”
AvaTrade's New Sales and Retention Head; Torstone's CFO; read today's news nuggets.
London Capital Group
(LCG) is making the transition from being a spread betting and
contracts for difference (CFDs) provider to becoming an
introducing broker. As part of the move, the LCG has tapped its UK-based rival, IG Group, as its first third-party trading platform provider,
the company confirmed to Finance Magnates
on Tuesday.
LCG Becomes an Introducing
Broker
Under the new
arrangement, LCG said it will focus on providing its clients with ‘boutique’ and
relationship management services while IG Group will
provide the platform, pricing and execution services. The firm also plans to onboard other ‘leading third-party platforms’ in the future.
Recent developments show LCG's transition plans have been in the works for months. In January, Dave Worsfold, Matt Basi and Stuart Dorward took over the management of the company as the Chief Executive
Officer, Managing Director and Head of Sales and Trading, respectively. In the following month, LCG announced that it had signed a new partnership deal with IG
Group to leverage
Leverage
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
Read this Term its technology. It also said it
will engage
other “industry leading providers”
as part of “the new evolution of LCG.”
“By partnering with IG
for the technology, pricing, execution, on-boarding and holding of client
money, we are free to re-shape the business to focus on service and
relationships,” Basi told Finance Magnates. “We’ve re-staffed the business
accordingly and are really excited about the team we’re building, all of whom
have deep experience and we’ve worked with before.”
LCG Says
Trading Industry Is ‘Overcrowded’
The switch in business
model occurred as LCG UK, which is owned by Charles Henri Sabet who controls Swiss firm Flowbank, suffered a decline of 86% in revenue during the fiscal year of 2021, owing in part to the
UK’s exit from the European Union (EU). The company was a part of the London Capital Group Holdings. However, Sabet acquired the UK-based spread betting and CFDs provider and separated it from London Capital Group Holdings which went into liquidation.
Following Brexit, LCG lost its passporting rights for operations in the
EU region and focused solely on the UK client base. However, its
sister entity LCG Capital Markets Limited is
based in the Bahamas and operates globally with authorization from the offshore
regulator.
“Our view of the sector
is that [the trading industry] is over-crowded with firms competing to be
counterparty to client trades and [to] risk manage their flow,” Basi explained. “We feel that for
clients to get the best outcomes, firms should focus on the value they can add
to the client trading experience.”
LGC Gives Deadline for
Account Closure
Meanwhile, LCG has said
its clients can open and close their trades, make deposits
and withdrawals until June 30, 2023. In a message sent out
to clients, the spread betting and CFDs provider noted that clients will be
given another period of four-week grace to close out any existing
positions on their LCG accounts.
Confirming the deadline to Finance Magnates,
Basi noted that the step is to help give its clients “appropriate time/notice
to make the transition and to handle the business change in an orderly,
professional way.” He added that “the next tranche of clients [will be
contacted] in due course.”
AvaTrade's New Sales and Retention Head; Torstone's CFO; read today's news nuggets.
