MetroTrade, a brokerage firm led by one of Tickmill Group's founders, has been licensed by the Commodities Futures Trading Commission to offer brokerage services. This approval allows the company to provide retail traders with access to the US futures markets. Additionally, the brokerage firm has joined the National Futures Organization.

Led by Industry Veterans

MetroTrade was founded by David Klotz and Ingmar Mattus. Klotz has a background in the futures industry, while Mattus is the Co-Founder of the Tickmill Group and a seasoned executive in the global brokerage space. According to the press release, MetroTrade plans to launch its services this Summer on its web and mobile platforms.

Speaking about the launch, Klotz mentioned: “The US futures markets are some of the deepest and most liquid markets in the world. Retail traders deserve to have a variety of choices when it comes to their brokerage needs, and we are excited to meet and exceed those expectations.”

MetroTrade will roll out its brokerage services in partnership with Andromeda Capital Partners Suisse, a Swiss-based private equity firm that focuses on the technology and brokerage sectors. Andromeda Capital has invested in notable firms, such as AgenaTrader and Change Securities.

As MetroTrade prepares for its launch, the company is actively recruiting talent across various departments, including customer support, technology, and finance.

Futures Market Gains Momentum

A recent report by Finance Magnates noted that the regulatory landscape in Europe is pushing traders and brokers towards alternative instruments, notably futures and options. Over 50% of European retail brokers are reportedly considering a shift from Contracts for Differences (CFDs) to futures and options. This indicates that the trading industry is experiencing a significant change.

This transition is driven by the recent disruptions in the proprietary trading sector, which have led to the emergence of futures prop trading platforms. Since August 2018, heavy restrictions imposed by the European Securities and Markets Authority have limited leverage offered to retail clients, prompting brokers to explore alternative instruments.

Additionally, the regulators in countries like France and Spain have implemented strict rules, leading traders and companies to search for alternative trading avenues. Despite regulatory pressure, some industry experts believe that the shift from CFDs to futures is not yet significant, with traders showing resilience.