London-based brokerage firm, Tickmill is expanding its product portfolio with the launch of futures trading to capitalize on the growing popularity for such instruments outside their traditional users.
“After partnering with CME, the world’s leading derivatives marketplace, we’re giving to our clients access to globally regulated Futures Exchanges, including NYMEX, COMEX, CBOT and EUREX. This will provide you with direct market access, giving you fast and reliable execution on our new CQG platform,” the UK broker told Finance Magnates.
According to Duncan Anderson, CEO of Tickmill UK Ltd, the product has been in the works for over 18 months and the company “intends to bring strong competition into Futures and Options space with competitive pricing, access to a wide range of markets and excellent customer service.”
As part of its plans, Tickmill has partnered with top-tier regulated exchanges in order to lower trading costs and let them tap into their range of futures aimed at smaller investors.
The broker broadens its product line as clients’ desire to garner exposure to regulated markets has been increasing. The moves are a sign that more retail traders are looking to diversify their trading options and further marks how such regulated products are starting to appeal beyond a relatively small group of institutional investors.
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Although heavily regulated with a limited ability to juice up their bets, exchange-traded derivatives offer certain advantages over traditional OTC products. The list includes standardization, liquidity, and elimination of default risk. ETDs can be also used to hedge exposure or speculate on a wide range of financial assets like commodities, equities, FX and even interest rates.
Tickmill is a group of companies with UK FCA, Cypriot CySEC, SC FSA, South African FSCA and Malaysian LFSA licenses.
Tickmill has recently reported strong financial results for the fiscal year 2019, having bested its equivalents from the year before. Additionally, the net revenue stood at $68.6 million, marking a 52.1% increase from 2018’s result of $45.1 million. Moreover, net profit came in at $37.7 million, an increase of 91.4% compared to 2018’s figure of $19.7 million.
On the trading volumes front, Tickmill disclosed that in 2020 its platforms process over 9 million trading transactions per month and in March 2020 its turnover hit the all-time record of $170 billion in notional value.