LeapRate Exclusive Interview… As was first reported on LeapRate at the beginning of this week (the company put out a press release a few days later), international Forex and CFD broker Blackwell Global has just received its FCA license in the UK, more than a year after setting up a team in London.
Blackwell Global has offices across the Far East and was (and still is) regulated by CySEC, and the Cyprus license had been passported several years ago to the UK via MiFID.
So the question is – why an FCA license too? And why now?
Joining us to address these issues and more is Patrick Latchford, CEO of Blackwell Global UK.
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LR: Hi Patrick, and thanks for joining us today. Please let us and our audience know a little more about Blackwell Global.
Patrick: BG started back in 2010, which by most industry standards is a not long but by FX standards almost qualifies as ‘veteran’ status. Michael Chai, the founder, has developed a global business centered around a number of offices in the Asia Pacific region, and has grown the business rapidly. He’s achieved that by, clichés aside, an obsessive desire to build, support and service, the clients and key relationships outside of the business. I’d also personally comment that he’s also hired an exceptionally bright and enthusiastic team around him, whom are passionate about continuously improving and developing the business. The team, the company and Michael’s ethos is what attracted me and convinced me to join.
LR: Can you let us know the reasons behind getting an FCA license. You’re already licensed and regulated by CySEC, which passports to the UK and throughout the EU.
Patrick: If a company aspires to be recognized as a ‘global brand’ in the FX/CFD space you have to have a significant presence in London and the FCA license; it’s that ambition that’s led to this strategic move. We see the Cysec license as complementary, with an established and professional team whom have already developed a number of markets. The UK business is focused towards other markets.
LR: The UK online trading market is very competitive. How do you see Blackwell competing in the UK?
Patrick: UK retail clients are spoilt for choice and the market is dominated by IG Group with over 50% market share, so retail clients in the UK will only make up about 10-20% of our client base. I’ve been involved in the UK market more than any other and I know the potential clients are self-directed and intelligent in their choices; it will take time for them to become familiar with our brand, and a little more time for them to respect and understand it. As long as we can earn that respect, we’ll start to grow with UK clients; we’ll have to play the long game in the UK.
LR: What products and which regions do you think will provide the most growth potential for you globally?
Patrick: We’re starting off with a fairly standard range of FX pairs and CFDs covering all the major instruments that clients trade in. At the end of the day, most of the volume and action, perhaps as much as 90% is concentrated in half a dozen currency pairs, with EURUSD dominating, Gold, Oil, and a handful of index derivatives. I’d like to be as close to perfect, client experience wise, on these , and then we’ll expand the range. It is better to get one thing right, than do 6 things averagely, I can’t help feeling that clients are fed up with poor service from a lot of industry players.
As I say to the team in the office, “under promise, and over perform”, and we’ll build momentum. It’s exciting to be involved in this new chapter at Blackwell Global.