We’re not aiming to be the largest CFD provider. We want to be the home of the active trader.
Sydney (PRWEB) August 18, 2012
Leading CFD provider, CMC Markets has increased its share of frequent traders by six per cent, firmly positioning the company as the top choice for active CFD traders.
According to the latest Investment Trends report out today, CMC Markets has increased its market share amongst frequent traders from 22 per cent to 28 per cent over the past year.
Head of CMC Markets ANZ, Louis Cooper said he is pleased with the results after recently moving the entire business to a more high touch approach, which caters specifically to their most active traders.
“Over the past 12 months CMC Markets has been focused on client suitability and longevity rather than building a large book of clients,” Mr Cooper said.
“We want to attract traders who understand CFDs – the highs and the lows – and who want to have a long-term, successful relationship with CMC Markets.
“To be frank, if a potential CFD investor comes to us not understanding leverage, and without a good grasp of financial markets, we don’t want that person to begin trading with CMC Markets.
“Our aim is to build long-term relationships with our clients, enabling them to become profitable and successful traders.”
Moreover, the client experience should be backed by clear, best practice regulatory controls and CMC Markets seek to give its clients peace of mind knowing their funds are secure. That is why CMC Markets fully segregates all client money, which means CMC does not use client money to hedge its positions nor meet the trading obligations of other customers.
“Our objective over the past 12 months has been to promote the benefits of this approach to the right investors,” Mr Cooper said.
“It might surprise some people that CMC Markets is deliberately targeting active traders who understand CFDs and their up-and-down side characteristics. These are typically experienced investors, and are people who are also seeking a long-term, successful relationship with us.
“We’re not aiming to be the largest CFD provider. We want to be the home of the active trader and I’m really pleased to see that reflected in the Investment Trends research.”
This focus on quality also makes commercial sense. “Since the 2011 launch of our new trading platform, CMC Tracker, CMC Markets’ revenue and turnover per customer has increased, despite a drop in customer base.
“In fact, 90 per cent of our turnover is derived from 20 per cent of our most active customers.
“We’ve had a 32 per cent year-on-year increase in turnover, and 70 per cent year-on-year increase in the first quarter – all from 20 per cent less customers.”
CMC Tracker was launched in Australia 12 months ago and was purpose-built with active traders in mind.
“We built the platform to attract active investors including features that directly appeal to them such as reliability, tight spreads, advanced charting, execution speed, and advanced pattern recognition software.”
With ASIC long being concerned about the suitability of CFDs for retail investors, CMC Markets have made sure their strategy reflects the need for Australian CFD providers to be more responsible with who they target and how they assess suitability of new clients.
“We have deliberately evolved our business over the past 12 months to ensure we are catering specifically to active investors. In addition to our platform we provide access to dedicated and experienced relationship managers, as well as one-to-one mentoring from CMC’s award-winning Education team. As head of the company, I also deal directly with our clients on a daily basis.
“I know there are a lot of very good traders out there who are frustrated with the stock standard, impersonal offering they are getting from other providers. Our entire business has been tailored for experienced, active traders and I personally invite them to come and trade with CMC Markets.”