Scope Markets, a retail brokerage brand owned by Rostro Group, has introduced a new and unique account type designed for non-leveraged contracts for differences (CFDs) trading.
This innovative account, named Scope Invest, is crafted to provide a distinct trading experience by offering CFDs without the option of leverage and restricting trading to “long” positions only. This strategic initiative aims to attract traders seeking a safer and more straightforward approach to investing in the volatile CFDs market.
Over 2,000 Global CFD Equities
The Scope Invest account offers access to over 2,000 global CFD equities, providing a broad spectrum of investment opportunities. These accounts are denominated in major currencies, including GBP, USD, and EUR, and also feature fractional shares. By offering commission-free trading services, Scope Markets aims to enhance the attractiveness of this account. Potential earnings for the brokerage will come from spreads, so investors benefit from cost-effective trading solutions while minimizing the risk of capital losses typically associated with leveraged trading.
Traditionally, CFDs are leveraged products that enable traders to take both long and short positions on underlying instruments. Leverage amplifies potential returns but also significantly increases risk, as losses can exceed the initial investment. By eliminating leverage, Scope Markets’ non-leveraged CFD accounts mitigate these risks, creating a safer trading environment for investors who prefer a conservative approach. This move makes the Scope Invest account particularly appealing for those looking to engage in long-term investment strategies without the added pressure and volatility associated with leverage.
Moreover, the Scope Invest account offers several additional benefits that make it an attractive option for investors. Despite not owning the underlying assets, investors still benefit from corporate actions such as dividend payments. This feature provides an experience similar to share ownership without the transaction and holding costs usually incurred with traditional share investments. By focusing solely on long positions, Scope Markets further reduces the risk profile of its product, catering to investors who prefer upward market movements.
Regulatory Standing
Scope Markets holds six regulatory licenses, which include approvals from authorities in Cyprus, Kenya, and Belize. This extensive regulatory compliance demonstrates the company’s commitment to adhering to high standards of financial oversight and ensuring a secure trading environment for its clients.
Pavel Spirin, the CEO of Scope Markets, highlighted the advantages of the new account type, emphasizing its suitability for investors seeking reduced capital risk. He pointed out the inherent risks associated with leverage and short selling, making the Scope Invest account a prudent choice for cautious investors. By offering a product that eliminates these risks, Scope Markets aims to carve out a niche in the competitive CFD trading market, appealing to traders who value stability and long-term growth.
