Capital Intelligence leverages into CFDs
A new player will enter the burgeoning contracts for difference (CFD) arena, with publicly-listed Western Australian-based Capital Intelligence announcing it is setting up a dedicated division.
The company said the division would trade as HomeTrader Securities and would act as a product originator and operate off a platform, the rights for which had recently been acquired by Capital Intelligence.
Capital Intelligence executive director Jason Davis said the new division would offer CFDs in similar terms to other market leaders and would adopt a direct market access approach, meaning all market exposure resulting from client positions would be hedged 100 per cent with the underlying market.
“Given the amount of transactional business we generate by way of the HomeTrader education business, this division makes perfect sense and accordingly we expect it to add significant value to shareholders,” he said.
“The biggest challenge CFD providers face is customer acquisition, which in our case is already taken care of by the HomeTrader business,” Davis said.
AUTHOR
Mike Taylor
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