The Gibraltar based CFD and spread betting company and its subsidiary, InterTrader Direct, recently reported that it had agreed to enter a strategic alliance with Stockpicker in choosing the investment instruments as its exclusive CFD partner in order to widen its scope in reaching the Swedish market.
InterTrader direct, a subsidiary of Bwin has shown an optimistic interest in extending to other markets having recently included MetaTrader 4 platform to its services which is readily available alongside the company’s existing spread betting oriented platform which is predominantly anchored towards the British consumers.
By offering spread betting options on MetaTrader 4, the firm can start with accepting retail requirements if FX traders in other regions aside from the United Kingdom, a direction in which many spread betting and CFD providers are beginning to shift earlier this year.
Distribution Channel against Synergy
The rationale behind the company’s decision to enter the Swedish market by forming a partnership with a company with established presence in the region is understandable in terms of the current situation of the market.
Speaking with regard to the reasons for selecting Sweden as its partner, there are very few essential combinations and attractions wherein Sweden is best known for. First, Sweden is reputed to be home to a highly educated trading community with other established markets. Furthermore, it can also be said that the country us very stable in its fast expanding economy.
In resemblance with today’s announcement of the partnership with InterTrade Direct and Stockpicker also released a Swedish language version in their respective web domains by making their platforms and interface easily accessible and user-friendly customer support.
As a nation whose regulatory structure is governed by the pan-European MiFID directive, the ease of enticing client base in a progressive country such as Sweden does not require any additional expense in regulatory registration, instead of utilising the company’s existing financial services commission license.
The European CFD trail
Although the InterTrader Direct’s MetaTrader 4-derived spread betting product serves as the primary British client base, the CFD offering is an attractive proposition to several countries namely; Spain, France and Italy.
The partnership with Stockpicker brought InterTrader Directs CFD products to the Swedish economy supplanting Stockpicker’s former partnership with IG Group, on what is considered a privileged position in picking up the private partnership with the former from the firm’s company’s previous identified partner IG Group there is a possible profitable future value.
However, when asked regarding the possible future revenue, it is still too premature to speculate but the probability of a fruitful outcome is certainly possible with the company actively seeking additional agreements in its CFD offers to emerging markets.