Transcription
EBC Financial Group is a family of regulated brokerage companies worldwide, offering a multitude of commercial services: for professional customers and eligible for the United Kingdom, and for retail merchants in Asia and Latin America. In the second video in our three -part series with David Barrett, CEO of EBC Financial Group UK, he is thinking about how the group’s customers have adopted the index and the ETF of raw materials, and the forces behind some of the unusual trends in these products.
World finance: David, are there any out-of-competition workplaces or the interests of the customers you have seen in recent months?
David Barrett: Where they changed their trading style because of the volatility we saw – we saw people being a little wider in the way they look at the markets.
We have therefore recently introduced FNB: we have index offers, and we also have a full range of raw material offers. But while before, I think people tended to paint their exhibition in unique pairs or particular sectors, things like ETF allow them to step back. They don’t have to choose the individual stock, they don’t have to choose the particular pair. They can reflect a view of a wider instrument.
And I think that if we look at what they do, I think the volatility we saw in early April tempered the appetite of people to be all the time. And I think that the changing opinions of customers on how they should reflect their risks means that they use a wider range of products.
Global finance: raw materials have shown unusual models this year – How are retail and institutional merchants react?
David Barrett: The products were a little strange. I mean we see a huge amount of golden flow. I think it’s because it moves, it was trendy and it was a very popular blanket for all the noise we have seen.
But I think gold is a little different. Central banks have been massive gold buyers – and this continuous request in the last five to 10 years has started to really be part of the contribution of the justification of people from what they do. They understand that there is an underlying demand.
But we have also seen it on other markets. The oil was really delicate. Geopolitically, you would have thought that petroleum would exchange in stratosphères, but in fact, it is a very offered commodity, because the fundamentals show that there is an enormous amount of excessive offer.
The OPEC has tried to tighten without success; Countries like Brazil and the United States are put online, it produces a huge amount of oil and gas. So, as soon as you saw any type of relief in the geopolitical situation, the oil was very, very quickly. And the reason why he folds up is due to the fact that there are very clear supply and demand problems on these markets.
And I think this kind of conversations is much more active with our customers these days.
Global finance: Looking at your CFD offers on the whole, how does EBC make sure that your customers have a width and depth through global themes, sectors and risky appetites?
David Barrett: Most are motivated by customer demand. So, if you look at the way we have developed the rest of products we have, we started with the basics and we have built this.
The reason why we brought ETFs, for example, and the reason why we brought unique actions was because customers asked.
And you put it there, you educate, you try to get the message across. The marketing team is doing a very good job to explain why we do these things, how it is relevant. They make more updates to specific economic events in other countries, so if something is happening in Chile or Colombia, this is relevant for imports and exports of minerals or other minerals.
So what we tend to do is that we tend to add these things because the customer wants them, then present them to the delivery of wider customers, because we can explain to them why people look at them and why this is relevant for what is happening.
And this kind of, being able to offer these different products, means that you remain relevant rather than being simply a kind of singular offer.
Look at the last part of this interview with David Barrett: EBC Financial Group extends the business family in Australia and Maurice
And if you started here, don’t miss the first video of this shoot: Trading in extreme volatility? Smaller positions, less lever and take your time