Retail FX and CFDs broker London Capital Group (LCG) is implementing a major transformation of its operations.
Starting on July 1, LCG will no longer directly handle customer accounts or money, nor will it be involved in customers’ trades. Instead, it will become an introducing broker for IG Group, a leading online broker previously known as its rival.
Starting July 1, customers of LCG will not be allowed to deposit money or open new accounts with them. They have four weeks to remove any outstanding positions. After four weeks, all remaining positions will be automatically closed.
LCG said it will still handle customer service and account management, but the trading platform, prices and transactions will be from IG Group. Those who want to stay with the company need to first open an account at IG and deposit money there. LCG may join with other platforms in the future.
CEO Dave Worsfold and Managing Director, Matt Basi, said:
The spread betting and CFD market in the UK is crowded with brokers competing to be counterparty to clients’ trades. Our feeling is that going forwards, firms need to find a niche or USP that adds value to their clients. Our ambition is to re-focus LCG as the best provider of high touch service and relationship management in the sector.
We’re excited about the team we’re building for this purpose, which is full of guys with 20+ years’ experience looking after active clients. We’ll be announcing more on that front shortly. In the meantime we’re delighted to have partnered with IG in the UK and feel their product is a great fit for our clients. Our plan is to continue to build that relationship and to work with our parent company FlowBank to transition our European client base.
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