The FCA-regulated subsidiary of Hong Kong-based brokerage KVB Kunlun added a new brand to its portfolio. The UK company named KVB Prime also added KVB Kunlun Prime and KVB Prime.
The three trading names of KVB Prime could be targeting different segments of the market. The company is authorized to offer trading services to both retail and professional clients in the UK.
KVB Kunlun’s move into Europe comes at a challenging time for the UK brokerage industry. The competition is rising as retail client acquisition costs spike higher and offshore brokers gain favor among retail clients in particular.
Finance Magnates has reached out to the UK team at KVB Prime, but at the time of publication no official response has been received.
The company is lead by Craig Davis, Sanjay Mandla, Julian Guy Rogers-Coltman and Jiandu (Nick) Wang.
Competing for EU Clients
After gaining a relatively solid market share in Hong Kong and China, KVB Kunlun could have set eyes on the European market for a very obvious reason. The crackdown on retail brokers operating in China last year has resulted in some issues for the industry.
Brokers have been most worried about their difficulties in getting their money out of China. That said, KVB Kunlun has a solid investor backing from the mainland and that shouldn’t be a problem for the company.
Nevertheless, expanding to new markets, even though the market conditions remain difficult is better than having no diversification strategy.
KVB Prime UK has a license to offer to its clients spread betting, rolling spot forex and CFDs. The company is also likely to work on a product that offers a broader access to financial markets including futures, options and stocks.
The brokerage company for the first half of 2018. The firm is yet to post its final results for the year.
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