Saxo has announced that it will be shutting down it’s spread betting service. Clients of Saxo Spread Betting will migrate and deal with Capital Spreads directly.
Saxo, is one of the largest CFD brokers worldwide and provides direct market access to equities, bonds, futures and options as well as being one of the a largest forex providers via their own platform. The Saxo spread betting services was a white label of the London Capital Group platform, whose own brand is Capital Spreads.
The news comes after there have been significant changes at London Capital Group with a reported 75% staff turnover since Charles-Henri Sabet took the reigns and focusses on building the spread betting and forex broker back to profitability.
There is also a significant amount more competition in the spread betting industry that in 2009 when Saxo launched the service. Increased competition and a decline in active spread betting clients may lead to more consolidation in the sector. This may include more white label contracts being cancelled (like City Spreads, another LCG white label) or acquisitions (like City Index by Gain Capital or Cantor Index to Spreadex).
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.