Sydney (PRWEB) October 04, 2012
CMC Markets Stockbroking reported a 232 per cent increase in net profit last financial year despite the local broking industry experiencing the lowest trading volumes in decades.
Head of CMC Markets Stockbroking Louis Cooper said the company’s results show that if the proposition and model are right you can run a successful business as well as provide your customers with real value in all market conditions
“CMC Markets Stockbroking has reported exponential growth and profitability year-on-year despite the Australian broking industry experiencing the lowest trading volumes in 25 years,” Mr Cooper said.
“We’ve seen a 300 per cent increase in new business and doubled our market share since we launched our lowest price brokerage of $9.90 per trade in 2010.”
According to the latest Investment Trends First Half 2012 Online Broking report CMC Markets Stockbroking is now ranked fifth in terms of market share for frequent traders*, ahead of big institutions like NAB Online, St George Directshares, and Macquarie Prime.
Mr Cooper said CMC Markets Stockbroking introduced the low price point to attract frequent traders, a strategy that has proved successful with 50 per cent of trades now coming from clients who have signed on since the new brokerage rate was introduced.
“Our strategy has been to provide our customers with the best platform and the best features at the lowest cost.
“Most of our clients are active traders who want a feature-rich service but low trade costs, so they can afford to trade over shorter time frames and take advantage of volatility in the market.”
CMC Markets Stockbroking has won six awards over the past two years thanks to its best value, low cost platform including Canstar’s Best Value Online Share Trading Platform 2011 and 2012, Smart Investor’s Cheapest Online Broker 2011 and 2012, and Money Magazine’s Best of the Best award for Cheapest Online Broker 2010 and 2011.
“By giving clients what they asked for we’ve implemented a business model that has allowed CMC Markets Stockbroking to grow while many in the industry continue to suffer.”
*Those who trade more than four times per month.