Boost & Interactive Investor announce FREE of commission trading in Boost's ETPs
Thursday 12th December '13
- Interactive Investor will allow all its clients to trade BOOST’s Exchange Traded Products (ETPs) for FREE from today until 31st March 2014
- A free trading facility in ETPs is a first for the UK market, BOOST has 44 short and leverage ETPs listed on the London Stock Exchange
- BOOST’s range includes the main commodity and equity benchmarks including Gold, Oil, FTSE 100 and FTSE 250
II is one of the UK's leading communities for traders and investors. II’s vision is to help its website users become better off by providing them with the hard facts they need to make the right financial decisions. II’s site, which was founded in 1995, maintains an independent stance. It provides execution-only products and services which enables its millions of site users to trade and invest directly from the site. At the same time its wealth of independent tools and information helps investors identify the best companies and products to invest in. With over 5 million unique users visiting II’s site every year, the Interactive Investor proposition delivers a service that has stood the test of time and provides the single point from which people can conduct all aspects of their investment lives.
|Product Name||Ticker||Product Name||Ticker|
|BOOST FTSE 100 3x Leverage Daily ETP||3UKL||BOOST FTSE 100 3x Short Daily ETP||3UKS|
|BOOST FTSE 250 2x Leverage Daily ETP||2MCL||BOOST FTSE 250 1x Short Daily ETP||1MCS|
|BOOST Gold 3x Leverage Daily ETP||3GOL||BOOST Gold 3x Short Daily ETP||3GOS|
|BOOST WTI Oil 3x Leverage Daily ETP||3OIL||BOOST WTI Oil 3x Short Daily ETP||3OIS|
BOOST ETPs provide S&L exposure to daily changes in the relevant index, such as FTSE 100 and FTSE 250 indices. For example, if the FTSE 250 rises by 1% on a particular day, then Boost FTSE 250 2x Leverage Daily ETP (2MCL) will rise by 2% and BOOST FTSE 250 1x Short Daily ETP (1MCS) will fall by 1%. However, if the FTSE 250 falls by 1%, then 2MCL will fall by 2% and 1MCS will rise by 1%.
Demand for transparent S&L ETPs has increased over the past few years with global S&L ETP assets rising to $52bn , as many financial markets have trended sideways, resulting in volatile but poor long term returns.
Investors have been increasing their use of S&L ETPs for a variety of reasons. There is wider product availability, greater product knowledge from improved educational resources and increased demand for hedging tools and leveraged instruments due to current market conditions. There is also a move towards independent, transparent and exchange traded instruments such as ETFs and ETPs. BOOST has worked hard to introduce investor education tools in order to help grow the investor base adopting S&L ETPs. The most recent being the ‘Adviser Tool Kit’ which BOOST launched on its website in May 2013.
S&L ETPs expand the investment range for investors and allow them to execute a wide variety of strategies including:
- Leverage the daily returns of an investment for the same capital as a non-leveraged trade
- Hedge existing positions in one simple trade
- Use a long or short strategy to take advantage of any short term rises or falls in the market, especially in a sideways trending market
- Use in pairs to trade and take advantage of undervalued assets
- Get short the market efficiently and cheaply without having to arrange and finance complex stock borrowing positions
BOOST believe S&L ETPs provide significant improvement on the other forms of short and leverage trading available to active and sophisticated traders in the UK such as:
- S&L ETPs are structured so you can’t lose more money than your original investment whereas most forms of other short and leverage often require margining
- S&L ETPs are traded on Exchange the same as an equity whereas most other forms of short and leverage trading are off exchange and traded against the provider e.g CFDs & spread bets
- S&L ETPs can be used in ISAs and SIPPs
- S&L ETPs are subject to capital gains tax and incur no stamp duty
Mike McCudden Head of Advanced Products from Interactive Investor had this to say:
“We believe that with the increasing popularity of ETPs the Boost range of products offers savvy investors the opportunity to hedge or speculate, using leverage where appropriate, on intra-day price movements without exposing themselves through the riskier range of instruments such as CFDs or Traded Options. As an execution only broker we fundamentally believe in leading with education and are delighted that one of the leading lights in the industry is onboard to help our clients better understand how to get the best out of these products”
Hector McNeil Co-CEO commented:
“At BOOST we believe in innovation and by being the first ETP Issuer to offer a free of trading commission facility with a market leading UK execution only broker such as Interactive Investor, we believe we are setting the agenda in the UK market. Education is the key to continuing the spectacular growth of ETPs to all customer groups. Alongside II we will provide some of the most comprehensive investor educational tools available. This will involve generic ETF and ETP education and specific education on S&L ETPs.
We hope that Interactive Investor customers will embrace this offer and see the advantages of Boost range and add S&L ETPs to their investment tool box.”