GLAND, SWITZERLAND: Online financial and trading services company Swissquote has announced its entry into real estate, in which it allow customers to invest in this sphere.
For the past few years, Switzerland’s largest online bank has been committed to expanding its wide range of multi-asset trading functionality through organic growth into new markets and via mergers and acquisitions.
And now they have added real estate into their portfolio, which already contains shares, fixed income instruments and commodities. This will allow customers to further expand their online investment portfolio, meaning they can match their portfolio to their personal risk appetency more effectively.
The new offering is accessible to traders through the entity’s Robo-advisor system which automates trades.
The trading categories include ETFs and investment funds that focus on real estate, whether directly or through listed firms active in the sector. This option additionally allows a specific geographical zone to be selected.
Swissquote introduced its Robo-Advisor in 2010, making it the first electronic wealth manager in Switzerland. It led Swissquote to becoming a pioneer in the digital wealth management field.
The Robo-Advisory solution is based on the same algorithms as the Swissquote Quant Fund, which won the Lipper Fund Award in 2016 for the best performance across three years. The company created the user-friendly system so as to make this unique technology accessible to everyone.
The company has been focusing tremendously on EFTs and multi-asset trading of products and futures on listed derivatives exchanges – the same route that many FX firms have been keen to take.
Since Swissquote acquired MIG Bank and ACM seven years ago, the company has expanded its proprietary trading environment into direct market access to bonds, equities, funds, warrants, and options & futures organically and through acquisition of its Swiss peers.
The firm also provides custom services to asset managers and corporate clients, and has become extremely stable because of having a wide range of products.
On March 15, 2017 Swissquote acquired 750, 000 treasury shares from Windel Investments Ltd and as a result increased their increased their percentage of Treasury shares to 7.67%.
Six months on, it was expected that the firm’s likelihood of increasing its benefit from Windel Investments’ activities in terms of commission and trading volume, plus increasing its number of treasury shares from 14,405,560 in the first half of 2016 until June 30, to 32,880,599 for the period between January 2017 and the end of June 2017. That is considerably difficult.
These shares were previously transferred as part of the consideration for the acquisition of MIG Bank Limited in 2013. The overall consideration also constituted of 210,000 stock options with a strike price of CHF 47.50 (48.32 US Dollars) and an exercise period ending September 26, 2017.
At June 30, 2017, the rest of the treasury shares balance is predominantly held for covering employees share and option plans.
During Swissquote’s consistent growth, the ability to operate as a Swiss bank plus having a constantly expanding capital base has made it possible for the company to form liquidity partnerships across all classes of the financial spectrum, a crucial move during the time at which many Tier 1 banks were leaving the OTC market.
Due to the activities of some of the large OTC companies like Swissquote and some large OTC firms in the UK, banks are now beginning to realize that this is a sector which offers vast revenues and that the risk is not what it used to be when extending counterparty credit, mainly due to the emergence of sophisticated OTC trading environments and the links to commodities, raw materials, metals, FX and echange traded futures that are now essential to core business.
With a liquidity coverage ratio of 599% during the first half of 2017, Swissquote performed much better than some other Tier 1 banks that distribute liquidity.
Given this corporate capability to envelop different markets and offer straight access to multiple asset classes in a way that outpaces conventional banks and stockbrokers, Swissquote is well positioned to approach an automatically traded listed derivatives and ETFs on real estate firms and offer this opportunity to retail customers.