Scalable Capital expands into derivatives

By Daniel Lanyon on Wednesday 21 July 2021

Savings and Investment

As one of the original ‘robo advisers’ Scalable Capital has expanded its business more than any other competitor in Europe including the launch of its neo broker business in recent years.

Scalable Capital expands into derivatives
Image source: Scalable Capital

Digital wealth manager and neo-broker Scalable Capital is moving into financial derivatives, including leveraged products. 

Derivatives are complex investment products. Their trading price is derived from an underlying asset – for example a share or an index – and performs depending on its price development and the structure of the respective derivative.

Scalable, which recently become one of Europe’s newest fintech unicorns, says clients are now able to trade certificates, warrants or other leveraged products via partners HSBC and HypoVereinsbank onemarkets. Goldman Sachs will join as a third partner soon. 

In addition to the existing investment universe of the Scalable Broker of around 10,000 shares, ETFs, Crypto-ETPs and funds, there are now around 300,000 new products

“The demand from our clients for a wide range of low-priced tradable derivatives was high – now we have delivered," says Erik Podzuweit, co-founder and co-CEO of Scalable Capital. 

"The derivatives launch is by far the largest product expansion since the broker launched just one year ago. It enables active and experienced private investors to pursue their individual investment strategies even better. With the introduction of derivatives trading, we are taking another big step towards becoming Europe's leading digital investment platform.“

The company conducts an appropriateness test before the first derivatives trade. In addition to the level of knowledge, the experience of the clients is also checked.

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