Retail FX: Retail rumours
Not only is retail FX seen as an increasingly important client segment, but it is a great source of rumour for us hacks
The deal between RBS and CMC – which I called a white-label solution but which a reader pointed out to me is actually an introducing broker agreement – has been gossiped about for months. Clearly, RBS has decided on a soft launch. In fact, it’s been so soft that when I rang up RBS Spread Trader this week the young man on the end of the phone answered: “CMC Markets.”
“Do what?” I replied. “I thought that was RBS?” At this point he started to flap. But he’ll get the hang of it as volumes pick up, which I’m sure they will do.
For readers not familiar with the UK retail market, the spread betters, such as CMC Markets, have done a fantastic job at repackaging sometime complex or inaccessible products and taking them to a wider audience. They spotted a gap in the market, filled it successfully and now it is no surprise that the big banks are trying to get in on the act.
“I believe this to be a significant liaison. With HBOS trading CFDs through an existing spread-betting bookmaker and Barclays already engaged in spread betting, this deal is an acknowledgement that spread betting no longer has a social stigma.