The Cyprus-based subsidiary of Polish brokerage Cinkciarz.pl, which operates under the brand Conotoxia, is now offering zero-fee trading on Indices CFDs. The new derivative instruments give the company’s clients exposure to 11 indices that include companies operating in different sectors and traded across many exchanges worldwide.
The addition of new CFDs is another step towards Conotoxia becoming a multi-asset brokerage, currently offering CFDs on shares, indices, and commodities as well as Forex.
The company broadens its product line as clients’ desire to garner exposure to stock markets has been increasing. The inclusion of Indices CFDs not only helps expand trading capabilities for clientele of its brokers but also attract more traders that are looking to diversify their trading options.
“With an Advance STP account, traders can now trade with spreads starting from 0.4 on selected Indices, such as US500 or US100. For popular DAX, the spread is only 0.7, with no additional commission for opening or closing the trade. The new offer includes 11 CFDs on Indices. Additionally, the minimum position value has been reduced from 1 to 0.1 lot on most Indices,” Conotoxia said in a statement.
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The launch of new indices also makes sense and reflects the increasing demand on these instruments among traders in Conotoxia’s native home, Poland. According to recent data by Poland’s largest broker, XTB, operating revenues were primarily influenced by the stock indices CFDs segment as the asset class generated 75 percent of the company’s total revenue in 2019 compared to only 49 percent a year earlier. Meanwhile, revenues from FX CFDs amounted to 18.0 percent of total revenues relative to 23.5 percent in 2018.
Conotoxia Ltd. is a member of Conotoxia Holding group, and it was originally launched in 2017. It initially offered the same services available through Cinkciarz’s core products: currency exchange, money transfers, and payments. The two brands were supposed to be functioning alongside one another, using the same registered graphic trademark, but one embraced a fully regulated retail brokerage offering.
Adding the forex markets to Conotoxia’s payment services not only appealed to its current clients, but also provides a diversification opportunity for the company.
Until recently, Cinkciarz.pl was associated with the currency exchange in three models: bank account transactions, currency wallet transactions and social transactions. As such, the driving force behind Conotoxia becoming a brokerage firm was to cash in on loyalty of its multinational customer base and also to provide a single source of FX transactions.