MetroTrade, a brokerage firm headed by one of the founders of the Tickmill Group, has received a brokerage services license from the Commodity Futures Trading Commission. This approval allows the company to provide retail traders with access to the U.S. futures markets. The brokerage firm has also joined the National Futures Organization.

Led by Industry Veterans

MetroTrade was founded by David Klotz, who has a background in the futures industry, and Ingmar Mattus, who is a co-founder of the Tickmill Group and a veteran executive in the global brokerage space. According to a press release, MetroTrade plans to launch the service on its web and mobile platforms this summer.

Commenting on the launch, Klotz said: "The U.S. futures market is one of the deepest and most liquid in the world. Retail traders deserve a variety of choices when it comes to their brokerage needs, and we are excited to meet and exceed their expectations."

MetroTrade will launch its brokerage services in partnership with Andromeda Capital Partners Suisse, a Swiss private equity firm focused on the technology and brokerage industries.Andromeda Capital has invested in Andromeda Capital has invested in notable companies such as AgenaTrader and Change Securities.

As MetroTrade prepares to launch, the company is actively recruiting across all departments, including customer support, technology and finance.

Futures market gaining momentum

A recent Finance Magnates report noted that the regulatory environment in Europe is driving traders and brokers toward alternative instruments, particularly futures and options. More than 50% of European retail brokers are reportedly considering a move from contracts for difference (CFDs) to futures and options. This suggests that the trading industry is undergoing a major change.

Recent disruption in the proprietary trading sector has led to the emergence of futures prop trading platforms that are driving this shift. Since August 2018, heavy restrictions imposed by the European Securities and Markets Authority (ESMA) have limited leverage Leverage In financial trading, leverage is a loan provided by brokers that facilitates a trader's control of a relatively large amount of capital with a small initial investment. As a result, leverage allows a trader to achieve a greater return on investment than a trade without any leverage. In financial trading, leverage is a loan provided by the broker that facilitates the trader to control a relatively large amount of money with a small initial investment. Therefore, leverage allows traders to earn a higher return on their investment as compared to trading without using any leverage. Traders look to profit from movements in financial markets such as stocks and currencies. Trading without any leverage significantly reduces the potential return, so traders will read this terminology provided to retail clients, prompting brokers to explore other instruments.

In addition, regulators in countries such as France and Spain have imposed stringent regulations, leading traders and firms to look for alternative trading avenues. Despite the regulatory pressures, some industry experts believe that the trend away from CFDs and towards futures is not yet evident and that traders are showing resilience.