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Spreadex MD, Jonathan Hufford, spoke to EGR’s Brad Allen recently to discuss Spreadex Financial, it’s position in the market and plans for the future. We have extracted parts of the interview that we thought might be of interest to you.

So how do you go about improving a business that has few competitors and a loyal collection of high-value customers? One target area for Spreadex is mobile, which currently accounts for 35-40% of stakes, compared to 80% at Sky Bet or 71% at Ladbrokes. Some of the shortfall can be explained by the relative complexity of spread betting markets and the more advanced age of Spreadex punters, but the firm now has a dedicated team working constantly on the mobile site to try and catch up with fixed-odds counterparts. Efforts to increase mobile participation should also be boosted by the continued prominence of in-play wagering. Approximately 65% of Spreadex’s sports betting volume comes from live wagering, with the mechanics of spread betting lending itself to trading in and out of positions with the ebb and flow of a game.

“Spread betting was the forerunner of in-running betting,” explains Hufford. “Companies promote their cash-out facility, but on Spreadex you can essentially trade out of your position at any point very efficiently, plus you get the ability to express opinions going both ways.”

Mobile aside, the broader message from Spreadex is ‘if it ain’t broke don’t fix it’. When asked about plans for the future, Hufford dismisses the option of expanding the fixed-odds service, saying:“We look upon ourselves primarily as a spread betting company.”

As a result, Spreadex is investigating new spread betting markets in Europe and potential acquisitions as it looks to bolster its current growth rate.

“We have set up a team to investigate the possibilities of going overseas,” Hufford confirms. “A number of our financial spread betting peers have already set up overseas and we are looking into that, but it is a legal, licensing and regulatory minefield. We have to tread carefully, but Germany, Italy and Spain are our main priorities in the short to medium term.”

Hufford believes the other main avenue for growth is through acquisitions, following several successful deals in recent years. Since 2009 Spreadex has purchased the non-equities business of rival spread betting firm Cantor Index and the client databases from IG Group and bankrupt company MF Global Spreads.

“The industry is fairly fragmented, so we’re always looking for acquisition opportunities,” adds Hufford.

The former City trader said he didn’t have any specific targets in mind, but if the company’s 16-year history of success is anything to go on, the buy signal at Spreadex should remain firmly on. ™

You can read the interview in full on the EGR website – take me there

 

Want to know what we think of Spreadex?

Check out our Spreadex review and find out if they provide the service you need from your spread betting broker.

 

About Spreadex

Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number 000-008835-R-104580-004.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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