Weekly Highlights: Revolut Unveils CFD Platform, eToro Buys Aussie Investing App, and More

Revolut Targets CFD Traders with New App in the EU

Top in this week's headlines, Revolut launched a standalone platform, Revolut Invest, to expand its wealth management offerings, including contracts for differences (CFDs). The new app offers around 5,000 other assets, including US and European stocks, exchange-traded funds, commodities, and bonds.

The British fintech firm is offering CFDs through its Lithuania-regulated entity, Revolut Securities Europe UAB. It is first offering CFDs in three European countries: the Czech Republic, Denmark, and Greece, according to the terms and conditions on its website.

Official! #Revolut's new Revolut Invest app, will offer about 5,000 assets on debut, including US and EU stocks,ETFs, commodities and bonds, as well as new CDFs.

Currently undertaking testing in Dermark, Greece and Czechia.

Equity and bond investments… https://t.co/BsY4TMAnRL

— Max Karpis (@maxkarpis) September 24, 2024CMC Connect Breaks Down CFD Deal with Revolut

In June this year, CMC Markets partnered with Revolut to make CMCs contracts for difference (CFDs) available via the Neobank app. Finance Magnates sat down with Richard Elston and Michael Bogoevski, the Head of Institutional ANZ at CMC Connect, to discuss the deal and find out what the future holds for the 35-year-old firm.

“As a starting point to do a deal of this type, you need a technology framework,” Elston, CMCs Group Head of Institutional Sales, said on the broker's agreement with Revolut. “We also drew a schematic of what we felt could work and [what] needed enhancement. But you've got to have a good, solid starting point.”

XM and Trading.com UK Operator Reduces Net Loss in 2023

In the financial reports, more brokerage firms in the UK released their financial results this week. Trading Point UK, an FCA-licensed entity responsible for brokerage brands such as XM and Trading.com, published its operational results for 2023. Although revenue clearly increased for another year in a row, rising costs prevented the company from reaching the break-even point. Nevertheless, the net loss was reduced to £844,000.

Trading Point of Financial Instruments UK Limited (Trading Point) is responsible for Trading Point's operations in the United Kingdom. It manages clients from this part of the world for XM and Trading.com brands. According to the latest report published in the UK Companies House, the firm achieved revenue of £1.4 million in 2023, growing by 40% compared to £1.1 million reported the previous year.

Darwinex Operators Profit Rises by over 50%

Tradeslide Trading Tech Limited, the company behind the Darwinex brand in the UK, also released its financial results for last year. The results highlighted an increase in profit despite a decline in revenue. The firms equity jumped 29% compared to the previous year, which covered an 18-month period that ended in December 2022.

Tradeslides profit increased 54% from €377k to €582k, while the operating profit declined 45% from €466,812 to €252,566. “The company significantly improved gross profit in comparison with the last 12-month period, as well as optimized its fixed cost base. Profitability enabled the company to shore up its capital position throughout 2023,” Tradeslide commented on the financial report.

Source: Tradeslide

FxPro UK Rebounds to Profit

London-based retail broker FxPro UK released its financial report for the year ended December 2023, as published by Companies House UK. The report shows that the company bounced back to profit, boosted by a double-digit revenue growth. FxPro moved from a loss of £614,558 in the preceding year to a profit of £153,103.

The retail broker also managed to turn around an operating loss of £611,497 to a profit of £93,283. Although the companys distribution costs increased from £212,780 to £331,517, FxPro managed to reduce administrative expenses from £1,511,382 to £1,182,292. The company plans to offer its clients the dealing of physical shares this year in addition to the CFD offerings.

Trive Africa Launches CFD Trading for MENA Clients

Trive Africa launched contracts for difference (CFD) trading services for clients in the Middle East and North Africa (MENA) region. This new offering is facilitated through Trive International, a British Virgin Islands-regulated entity, Finance Magnates learned exclusively.

According to the company, this step marks an important milestone in its ambition to cover a larger market share across Africa and the Middle East. It followed the recent onboarding of CFD traders by Trive South Africa. Thrive Africa announced new incentives accompanying the launch of the service to clients in the MENA region, including a deposit bonus of up to $100,000 and access to leverage of up to 1:2000.

Trive South Africa Begins Onboarding CFD Clients

Trive's latest development followed the onboarding of derivatives trading clients by its South Africa's affiliate and marked its entry into the competitive African financial markets. The company, which operates under a license from the Financial Sector Conduct Authority (FSCA), is led by Marius Grobler, who previously served as Trives Chief Operating Officer (COO) in the MENA region.

Besides offering the MetaTrader 4 and 5 platforms, Trive South Africa has announced plans to launch a copy trading feature called Trive Social, while also developing its own proprietary trading platform. Grobler, now the CEO of Trive South Africa, mentioned that the company aims to establish itself as “the premier choice for derivatives trading” in this part of the world.

Zlatan Ibrahimović Becomes Official Ambassador of XTB

Following last year's addition of legendary goalkeeper Iker Casillas to its ambassador team, XTB unveiled another surprise for football fans. This time, the publicly traded Polish fintech has partnered with one of the most colorful figures in the sports world, Zlatan Ibrahimović, Finance Magnates learned exclusively.

XTB is launching a new media campaign featuring Zlatan Ibrahimović as its ambassador. This coincides with the fintech's 20th-anniversary celebrations and the unveiling of a refreshed logo. Ibrahimović, one of the most charismatic football players of the last generation with over 120 million social media followers, stood out with his unique goals and even more original ways of being.

eToro Acquires Australian Investing App for $55M

Elsewhere, eToro announced this week its acquisition of the Australian investing app Spaceship in a deal valued at AUD 80 million ($55 million). With this move, the Israel-based company demonstrated its intention to strengthen its position in the savings sector and focus on more passive, long-term investments.

The acquisition aims to bolster eToro's presence in Australia while expanding its long-term savings offerings globally. Spaceship, founded in 2017, has amassed over 200,000 clients and manages more than AUD 1.5 billion AUD ($1 billion) in assets through its superannuation funds and managed investment portfolios.

Retail Investors Flock to Stocks from Forex After Fed Rate Cut

eToro's latest data revealed that global retail investors are increasing their exposure to equities following the Federal Reserve's (Fed) first interest rate cut in four years. Riskier assets are gaining in favor of the Forex (FX) market and cash, where a decline in investor interest is becoming more evident.

The eToros quarterly Retail Investor Beat survey, which polled 10,000 retail investors across 12 countries, revealed a marked shift towards stocks and away from cash assets in the third quarter of 2024. The proportion of investors holding locally listed stocks jumped from 49% to 54%, while those invested in international equities surged from 31% to 36%.

CySEC Unveiled New Rules for Fractional Shares

The Cyprus Securities and Exchange Commission (CySEC) released new guidelines for investment firms offering fractional shares, addressing the growing trend of online brokers allowing investors to purchase only small portions of publicly listed stocks.

In a circular issued this week, CySEC outlined the regulatory framework for Cyprus Investment Firms (CIFs) that enables clients to gain fractional exposure to shares through trust arrangements. The move comes as fractional investing has gained popularity, particularly among retail investors seeking to diversify their portfolios with smaller capital outlays.

OTC Derivatives vs ETPs: Which Is a Better Revenue Generator for CFDs Brokers？

Despite a tough financial year for some brokers, the demand for over-the-counter (OTC) derivatives and exchange-traded products remains strong. Contracts for differences (CFDs) and exchange-traded instruments are driving significant growth in specific regions and segments. While some brokers, like XTB, are experiencing strong growth driven by CFDs and exchange-traded products, others, such as IG Group and Swissquote, have faced challenges, including declining revenues and reduced client activity.

Filip Kaczmarzyk, Head of Trading at XTB

Filip Kaczmarzyk, the Head of Trading and member of the management board, explained that the platforms revenues are dominated by CFDs, which accounted for more than 99% of revenues last year and just under 98% in the first half of 2024. “However, it is important to note the dynamic growth in revenues generated by stocks and ETPs,” he said. “Data for the first half of this year shows that exchange-traded instruments generated nearly three times more revenues than in the corresponding period of 2023.”

Robinhood Plans to Enter the Stablecoin Market: Can It Challenge Tether？

After Revolut, American zero-commission broker Robinhood is now considering launching stablecoins. However, a representative from the company said it has “no imminent plans to launch this offering” without dismissing the report.

Although it started as a disruptor in the American stock brokerage market, Robinhood expanded its offerings to crypto. It now generates a significant portion of its revenue from services around digital assets. Its crypto transactions revenue doubled to $81 million in the second quarter of 2024, while the total transaction-based revenue was $327 million.

PayPal Launches Crypto Services for US Business Accounts

Still with crypto, PayPal announced support for cryptocurrency for US business account holders. The fintech giant said the new service enables merchants to buy, hold, and sell digital assets directly through their PayPal business accounts.

However, this new functionality will not be available to businesses in New York at launch. PayPals decision to open cryptocurrency tools to businesses is reportedly a response to rising demand.

Binance Serves Users Despite 2023 Exit, Sees 43% Decline in Russian Traffic

Binance continues to serve some Russian clients despite its previous announcement of a full exit from the Russian market in 2023. A spokesperson from the exchange confirmed that it maintains services for a limited number of existing Russian users. This, they stated, is to ensure the security of their digital assets.

Binance still serves limited Russian users despite 2023 exit

Binance continues to serve a limited number of Russian users for asset security, despite its 2023 exit. According to Cointelegraph, Russian traffic to Binance's site dropped 43% from August 2023 to July 2024, but…

— CoinNess Global (@CoinnessGL) September 26, 2024

The spokesperson emphasized Binances adherence to global sanctions and compliance with international regulations, “fully complies with restrictions on individuals, entities, and countries subject to international sanctions,” the representative said.

Jamie Dimon: Inflation Might Not Be Going Away

The CEO of JPMorgan Chase has been beating the inflation drum for over a year, and frankly, we should all be paying attention. Dimon‘s latest pronouncements at The Atlantic Festival made it clear that he believes inflation won’t be fading quietly into the background. His reasoning？ Inflation is deeply rooted in factors that arent going away anytime soon.

And here's the thing: many experts believe he‘s right. The green economy, global rearmament, and national debt aren’t just talking points for Dimon; theyre serious long-term drivers of inflation.

Jamie Dimon of @jpmorgan sits with @jeffreygoldberg to discuss inflation and if the president has power over the direction of the economy.

— AtlanticLIVE (@AtlanticLIVE) September 20, 2024Kamala Harris: Mic Earrings, Cut-Off Conspiracies and Crypto News

Lastly, from mic-dangling earrings to digital assets, Kamala Harris is stuck in a whirlwind of conspiracy theories, but at least shes engaging in the totally conspiracy-free world of crypto. Kamala Harris has become an easy target for outlandish conspiracies.

From accusations that her earrings were secret microphones during the September 10 debate with Donald Trump to rumors that her CNN interview with Minnesota Governor Tim Walz was cut short due to some nefarious reason—it's almost as if some people are running a bingo game for baseless theories.

Happy weekend!