LeapRate Exclusive… LeapRate has learned that Markets.com, the Retail FX and CFD brokerage arm of online gaming and financial giant Playtech PLC (LON:PTEC), is planning on launching a new branded service targeting the high end of the retail client spectrum.
The new service will be called MarketsX.
Looking to break out of its long-term core area of providing technology and related services as a B2B supplier in the online gaming area, Playtech has built up a sizeable financials division, and has also recently expanded into the direct-to-consumer side of the gaming business via its €846 million acquisition of Italy’s Snaitech.
On the financials side, Playtech has cobbled together its TradeTech Group out of the acquisitions of FX clearing and liquidity provider CFH Group, and market maker Alpha Capital Markets. While those two groups are B2B suppliers of services and technology mainly to Retail FX brokers, the company’s own Retail FX brand, Markets.com, had been stagnating. Markets.com began a major reorganization in 2016, making a decision to change the way it acquired customers. The company ended relationships with many introducing brokers, also saying goodbye to many of its own in-house sales and retention people by moving from commissions to flat salary.
Joe Rundle
However after a disappointing year for both Playtech and its financials division, it looks like the company is now once again pouring more resources into Markets.com and the B2C side of the business. Playtech brought in a new CEO for Markets.com earlier this year, former ThinkMarkets and ETX Capital executive Joe Rundle, as was exclusively reported by LeapRate.
With backing from senior management, it looks like one of Joe Rundle’s first major initiatives as Markets.com CEO will be to target the high-value, high-margin segment of the high-margin B2C business – high-net worth and professional traders.
And as noted, the company will look to accomplish that with a new branded service targeting the segment, to be called MarketsX.
MarketsX will look to lever off of Markets.com’s own proprietary Indigo trading platform (the company also offers MT4), to provide a professional trading experience for MarketsX customers. That would include features such as:
- create your own ETF, out of a combination of tradeable products.
- service-on-demand, with inbound-only customer service people providing private banking-like service.
- sentiment analysis tools.
- advanced analysis, including live sessions with company analysts.
- interaction with other MarketsX customers.
We believe that Markets.com will have minimum deposit and trading levels for clients to receive the MarketsX service.
LeapRate spoke with Markets.com CEO Joe Rundle about the company’s plans for MarketsX. Here is what he had to say.
LR: Hi Joe, and thanks for speaking with us about MarketsX. Can you please let us know a little more about MarketsX, and how it will differ from the ‘standard’ Retail FX brokerage offering.
Joe: As part of the Markets.com mission of making Markets.com a Home For Traders, MarketsX is our new premium trading platform that will offer industry-leading products, tools and pricing.
We boast a very sound balance sheet and are backed by Playtech, a FTSE 250 company listed on the London Main Market, which mean we have the resources to invest in the right technology to capture a whole new market for Markets.com. This is a huge growth opportunity for Markets.com and one that is incredibly exciting for the company.
Through our in-house trading technology and support from liquidity and clearing partners in the TradeTech Group, we will be able to offer instant execution and best pricing on thousands of markets. We’re investing in new technology to make this the go-to platform for high value and professional clients. Charting packages and tools software is getting a major upgrade to meet the needs of these experienced traders.
For all types of traders the experience will be enhanced with powerful trading tools and products that are unique to Markets.com, as well as a new Knowledge Centre where they will be able to gain insight and analysis from our in-house team and from third parties.
This is about giving traders more control of their platform and what they trade. With MarketsX they can do things they cannot get elsewhere, like build their own ETF, have a live session with our analysts or get insight into hedge funds’ positioning. They can do this but if they just want to day-trade the DAX with a really low spread they will be able to do that too.
LR: Will clients of MarketsX need to be designated as professional investors? And, does that impact the leverage and other terms you can offer them?
Joe: MarketsX customers do not need to be designated as professionals. Obviously this means leverage requirements will be based on our risk models and the regulatory framework.
LR: What will be the minimum account size to become a MarketsX client? Will there also be min trading volume requirements?
Joe. It will be announced closer to launch.