ETX Capital

PHILIP ADLER

CEO of ETX Capital

Q ETX Capital has evolved from being a very successful CFD trading brand to in the recent past moving into capital raising. Why do this?

This was opportunity driven. We knew a Corporate Brokerage team who were looking for a new home in an established brokerage business. They explained to us the mechanics of their business model which is very simple; they match investors who are knowledgeable about the AIM market with AIM listed corporates who are looking to raise funds.

Q Do you see this as a useful way to mitigate risk to your bottom line as a company with more regulatory shackles being placed on CFD brokerages now?

We see this as a way to diversify our revenue streams. Traditionally ETX revenue relied on spread, commission and financing. Now our revenue includes routine Corporate Brokerage fees and fund raising fees.

Q Can you see more brands who are looking more long term to also follow your lead, as just offering an MT4 trading solution does not seem to make a brand stand apart?

I agree that it is hard to get cut through with your brand especially if you are just another MT4 broker. We are happy that we

do achieve brand recognition for a number of reasons. We have an award winning multi asset proprietary mobile and web based trading platform, Traderpro, that clients very much value. We have been established as a regulated UK broker for over 50 years. We have won many awards for our client service of which we are very proud.

Q What type of due diligence are you carrying out, prior to accepting a partner to raise funds for?

Extensive due diligence is carried out on all aspects of the business and the related sector. Each opportunity goes through an Investment Committee made up of several senior ETX executives to encourage debate and challenge and to collectively uncover all possible risks. The Corporate Brokerage team presents the business purpose/proposition, the balance sheet, the market liquidity, the management team, any licensing or technologies underpinning the business and any 3rd party dependencies. The Committee will approve or reject the opportunity or occasionally ask for more information.

Q As a client, how can I get involved in this. Is there a minimum deposit, or am I classified as a professional client?

There are no minimum deposits, no special accounts you have to open but you do have to be classified as a Professional client to participate

Q Will you be looking to attract Family offices and Funds in the future for larger capital raises?

We do work closely with family offices and small funds who are looking for investment opportunities and will look to continue to attract such investors. As we have become more established, we are regularly shown placing deals from other brokers and this activity is reciprocated.

Q Is this only for existing ETX Capital clients to take advantage of?

Yes you must be a client of ETX Capital

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