“As a market maker, spreads are a key part of our revenue model,” easyMarkets CEO Nikos Antoniades told FinanceMagnates.com following his decision to reduce spreads by 25 per cent across instruments. However, he pointed out that “in the short term, reducing spreads will have a direct impact on revenue. But we see it as a strategic investment in our clients.”

“Our long-term view is that lower spreads enhance the trading experience, increase competitiveness, and help drive higher trading volumes. It’s about providing value, staying ahead in a competitive market, and continuing to deliver the best possible experience for our traders.”

“Support Traders Throughout Their Journey”

easyMarkets is not the only broker to have cut spreads recently. Brokers have been adjusting and reducing spreads regularly to make their offerings attractive to traders. Recently, Poland’s XTB also heavily reduced its crypto CFD spreads.

Although thin spreads and fast execution are core to any broker’s service, they are not enough. “Traders, especially beginners, look for brokers who can support them throughout their journey,” Antoniades added. “That’s where services like education and market research come in.”

“The goal is to support every client, whether they’re just getting started or have years of experience.”

Interestingly, many brokers are also jumping into the trend of offering prop trading services, but it is not on easyMarkets’ “short-term roadmap.” Although Antoniades acknowledged the growing popularity of prop trading, he said: “It’s also an area where regulatory oversight is starting to catch up, and we expect more formal guidance to emerge in the near future.”

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“Google Ads and PPC to Influencer Partnerships”

Antoniades has been an executive at easyMarkets for over 17 years and has served as its CEO since mid-2014. “Over the past 20 years, the trading industry has transformed significantly,” he said. “When I started, it was largely unregulated. Today, we operate in a world where financial regulation is the norm, and rightly so.”

“We’ve seen a wave of global financial crises that led to the implementation of strict AML (Anti-Money Laundering) and compliance checks, which in turn impacted the kinds of products brokers could offer to retail clients. Back then, brokers were primarily focused on offering forex instruments. These days, the market has expanded dramatically — we are now talking about CFDs on commodities, indices, cryptocurrencies, shares, ETFs, and more.”

Highlighting the improved accessibility of retail trading, he said: “Trading today is faster, more reliable, and more cost-effective. The barriers to entry have come down thanks to lower trading costs, simplified onboarding, and quicker KYC processes.”

Another area where the retail trading space has witnessed a major shift is marketing. “In the early days, it was all about Google Ads and PPC,” the easyMarkets CEO continued. “Now, it's a much more dynamic landscape, with social media, influencer partnerships, content creation, and data-driven strategies. But at the core of everything remain three pillars: low cost, fast execution, and reliable service.”

easyMarkets is a sponsor of Real Madrid, one of the largest European football clubs. Although the Spanish regulator restricted the marketing of CFDs to retail clients in 2023, it did not jeopardise easyMarkets’ high-profile football deal.

“Our partnership with Real Madrid goes far beyond targeting a specific geographic market,” the CEO added, highlighting the global popularity of the Spanish football club. “The Spanish market itself isn't a core target for us, so the local regulatory changes haven’t impacted our partnership.”

“A Complement, Not a Replacement”

Crypto is another asset class, and the demand for it is continuously growing. easyMarkets was one of the first retail brokers to offer crypto CFDs to its customers as early as October 2017. “There’s definitely growing interest in cryptocurrencies, particularly among younger traders,” Antoniades acknowledged. “But rather than replacing forex, crypto is more of a complement.”

“The main appeal lies in its volatility,” he continued. “It's not uncommon to see intraday movements of 5%, 10%, or even 15% in crypto markets, which is rare in forex. This kind of volatility attracts traders looking for quick opportunities, but it also comes with higher risk.”

Apart from product expansions, many brokers are also expanding their geographical reach, especially in emerging markets. easyMarkets also obtained a South African licence last year. “South Africa is a key market for us,” Antoniades said. “It's the most developed and regulated financial market on the continent, which makes it the perfect entry point for broader expansion across Africa.

Although the broader African region is part of easyMarkets’ “long-term strategy,” the CEO clarified that the broker does not have immediate plans to pursue additional licences in other African countries.

However, the “diverse and dynamic” continent also has fragmentation issues, as each country has its own language, culture, regulations, and payment systems. “The biggest challenges right now are the lack of unified regulatory frameworks and localised payment solutions,” Antoniades added. “That’s exactly why we chose to start in South Africa, which already has a mature regulatory environment. When other markets in the region catch up in terms of regulatory clarity and infrastructure, we’ll be well-positioned to act.”

Source: Finance Magnates