Trade Nation opens European CFD business through Portugal

Trade Nation has formally launched its products and services in Europe through a new Portuguese regulated entity, giving the CFD provider a local base for European clients. The company said authorisation from Portugal’s securities regulator will allow it to passport services into other European countries, extending its distribution reach across the region.

The launch follows the opening of Trade Nation’s Lisbon office last year. Trade Nation said the Portuguese operation builds on its existing offices and regulatory authorisations in other markets, as the company expands its international footprint.

The Portuguese entity is regulated by the Portuguese Securities Market Commission, known as the CMVM, or Comissão do Mercado de Valores Mobiliários. Under the European passporting framework, an investment firm authorised in one member state can, subject to the relevant rules and notifications, offer covered services in other European jurisdictions without seeking a separate full authorisation in each country.

Trade Nation said European clients will be able to trade contracts for difference, or CFDs, on global indices, foreign exchange, commodities, shares and bonds. Access will be available through the company’s web and mobile platforms, as well as TradingView and MT4, according to the company.

The firm also said the European rollout will include zero commission and tight fixed spreads. Those terms are presented by Trade Nation as part of its emphasis on pricing transparency for retail traders.

European expansion plan

Trade Nation said the Portuguese authorisation will also support commercial partnerships and a broader brand presence in Europe. The company added that onboarding and customer support will be provided in local languages.

Luis Dos Santos, Trade Nation’s Portugal chief executive, said Europe is an important region for the company and that its client base there is increasing. He said Trade Nation aims to address growth in EU retail investing by offering its trading platforms to the region’s users.

Dos Santos also said providing services in clients’ native languages forms part of Trade Nation’s plan to extend its global reach. The company described the European launch as a step in its wider expansion, rather than a standalone market entry.

CFDs are leveraged products and carry a high risk of rapid losses. Trade Nation’s notice said that between 74% and 89% of retail investor accounts lose money when trading CFDs, and that investors should consider whether they understand how the products work and whether they can afford the risk of losing money.

The launch places Trade Nation inside the European regulatory perimeter through Portugal at a time when retail trading platforms continue to compete on access, pricing and user experience. The company did not disclose client numbers, revenue targets, partnership names or a timetable for entry into specific additional European countries.

This story draws on original reporting from Finextra Research.