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 'wealth tech' 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 'synthetic' investment products relating to an underlying asset such as a share or an index that allow gains and losses to be multiplied. 

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 derivate 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,“ he added.

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

Derivates have been mostly eschewed by European disruptive digital wealth platforms but are hugely popular among the ranks of users in the US of platforms such as Robinhood.

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