London Capital Group plc, one of the leading financial spread betting providers in the UK, has expanded its spreadbetting business with the launch Monday of an online CFDs trading platform in Australia under the company’s Capital Spreads brand. LCG will be operating from Sydney, having successfully acquired regulatory status with ASIC in Australia. The trading platform (Capital CFDs) allows retail clients to trade CFDs on global markets such as indices, stocks, currencies and foreign exchange.
Simon Denham, CEO, commented:
‘We have worked hard to develop our international offering and continue to seek expansion opportunities overseas as well as in the United Kingdom. We believe that there is a great deal of opportunity for Capital CFDs in Australia and South East Asia via our own brand and via strategic partnerships – and we are actively seeking partnerships with financial services and gaming companies in that part of the world.’
For IG Group, the Australian market has been a success story, with the £46m in revenues from Australia contributing nearly a sixth of total group revenues in the year to May 31. Although the strength of the Australian dollar boosted numbers, account numbers in the year also experienced a healthy 9.1% growth. Simon Denham commented that Capital CFDs intends to compete on price and there was still plenty of opportunity even though some main UK providers already have a presence in Australia. The new trading platform will directly compete with rivals IG Index, CMC Markets and City Index who also have a base in Australia.
Capital CFDs (Australia) is a trading name of London Capital Group Pty Limited, a wholly owned subsidiary of LCGH plc, and is regulated by the Australian Securities and Investments Commission and holds an Australian Financial Service Licence No. 364264. London Capital Group Pty Ltd ABN No: 85143553628. Registered address: Level 14, Macquarie House, 167 Macquarie St, Sydney, NSW 2000. LCG Ltd has a European passport and is a member of the London Stock Exchange. London Capital Group Limited also has access to international markets through its global clearing relationships.
Comments: Great to see Capital CFDs expanding into Australia. London Capital Group may be a new name in the Australian trading marketplace but they are fairly established in the UK and are one of my favourite spread betting providers due to their consistent tight spreads and low margins.