Institutional foreign exchange (forex) trading solutions provider Fortex Technologies Inc., announced that it has added single stock contracts for differences (CFDs) to its trade offering.
With this addition, traders of Fortex’s broker-dealer clients now have the ability to trade stocks of more than 50 large-cap “blue chip” companies such as Apple, Google (Alphabet), Facebook, Amazon, Telsa, IBM, JP Morgan, Barclay, Alibaba, Baidu and more.
With this new addition, traders can either open long (buy) or short (sell) CFD contracts in individual stocks, without buying the actual stocks. Fortex has made the trading of this new asset class available via a range of platforms. Namely, it is available on its proprietary trading GUI, XRing FIX trading API, as well as MT4 and MT5 Bridges to MetaTrader.
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The rise of single stock CFDs
As Finance Magnates analyzed, whilst single stock CFDs are not a new product, they are becoming increasingly popular, with more and more brokers adding them to their offering as regulatory pressure continues to push trading firms to diversify their product suite.
In addition to increasing revenue, by adding equities, brokers can also weather periods of low volatility in other business areas better. The currency markets, for example, experienced a prolonged period of low volatility towards the end of 2018 and throughout the first quarter of this year.
“Multi-asset offerings have been essential for the evolution of the FX and CFD industry for the past few years. With growing demands from customers across the globe, more and more broker-dealers have desires to add equities trading, whether real or CFD-based,” the statement from the company said.
“Deeply rooted in the U.S. equities market, Fortex’ DNA uniquely positions its system to offer, in addition to the existing Global Indices CFD and Crypto CFD trading, now Single Stock CFD’s to its institutional clients, enabling them to be more competitive in winning market shares.”