The brokerage explained that shares of multiple companies from a sector are put into a basket, offering a single tradeable instrument.
The official announcement detailed that the new sector-based stock baskets will have stocks of airlines, casinos, travel & hospitality, US automotive, US banks, US e-commerce and the newly emerged ‘work from home’, which includes stocks of companies like Zoom, Slack and Twilio.
Commenting on the new additions, FXCM CEO, Brendan Callan said: “We are always looking to create new opportunities for our customers to capitalise on, and this is continued with these new baskets reflecting some of the industries that have seen the biggest market movement during the pandemic.”
A Popular Instrument among Traders
FXCM first introduced such baskets of shares in May 2020. The latest expansion in the offering came with the popularity of those share baskets.
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The brokerage currently offers six such share baskets, tracking the popular sectors like FAANG, esports and gaming, biotechnology, cannabis, China technology and China e-commerce.
“Their addition to our offering will provide our customers with the ability to speculate on the fluctuation of companies that have dominated the headlines throughout 2020 in a more cost-effective way while minimizing their risk by spreading exposure across multiple stocks in just a single click,” Callan added.
Owned by American investment company, Jefferies Financial Group, FXCM is regulated in the United Kingdom, Australia, and South Africa. Furthermore, it opened up a new base in Cyprus to continue its European operations post-Brexit.
Finance Magnates last month reported on a cyberattack on the broker as ‘an unauthorized person’ had broken into its database and copied information relating to the company’s conversations with clients. However, that did not affect customer funds and login credentials.