FXCM has launched its StockBasket offering to customers on its Australian and South African entities. The 6 stock basket products combine the shares of multiple companies from one sector into a single tradeable instrument.
Customers of the leading retail trading company will be able to use the StockBasket offering in order to speculate on sectors as a whole instead of having to select a single company.
The 6 baskets available to retail clients are: Big US Tech (“FAANG”), Esports & Gaming (“ESPORTS”), Biotech, Cannabis, China Tech (“CHN.TECH”) and China E-commerce (“CHN.ECOMM”).
Brendan Callan CEO of FXCM commented: “The stock baskets are another step in our continued journey into stock CFD trading. These baskets provide customers an easy one-stop opportunity to speculate over sectors and subsequently trade stocks related to that particular industry. Trading stocks can often be quite a daunting experience when first entering the market, however baskets can provide an excellent opportunity for traders to spread their investment across a number of different companies, hedging their risk and benefiting from potential trading opportunities.”
In year-to-date (YTD) figures calculated using FXCM’s closing bid price from 2 January 2020 through 13 May 2020, the Esports & Gaming sector is up by 12%, following by the Big Tech “FAANG”, at +10%. Biotech and Chinese E-Commerce are also up by 8%, while Chinese Tech is down -1%.
FXCM plans to launch trading on more individual companies and stock baskets later this year.
It was in March 2020 that FXCM first announced it is expanding into equity trading with the launch of a commission-free trading service in partnership with Interactive Brokers. Zero commission only applies to certain products up to a certain volume. FXCM Stocks will white-label the technology from Interactive Brokers and will offer trading for US, UK, Hong Kong and European stocks.
In 2019, the US-based global forex brokerage firm enhanced its client product offering and trading experience by adding Trading Central, a provider of investment research and financial market commentary. The integration will help clients to receive expert views and institutional-grade trading strategies, including helping clients confirm their own views of potential risk/reward opportunities in the financial markets. Trading Central develop solutions for multiple platforms including MT4 and offers its clients with access to the daily newsletter and other features.
FXCM first launched crypto CFD trading in 2018 with a first support of Bitcoin (BTC) and then Ethereum (ETH). In February 2019, FXCM added Litecoin (LTC) as its third crypto available for trading. FXCM added Bitcoin Cash (BCH/USD) and Ripple (XRP/USD) in May 2019. Later that year, the broker introduced a crypto basket to its retail customers, under the name of CryptoMajor and made up of the 5 cryptocurrencies currently traded on FXCM’s platform: Bitcoin, Ripple, Litecoin, Bitcoin Cash and Ether. The basket has a number of cryptocurrencies grouped all into one tradeable product, therefore, allowing traders to collate multiple digital assets in one go, without the need to
independently manage them. CryptoMajor addresses hedging transparency
issues by giving an equal weighting for each coin in the basket, ensuring the product is not overly exposed to just one crypto.