Business Overview
The goal of SYCAP Group is to participate and profit from the
CFD, Spread Betting and Forex segment which it has identified as
the fastest growing part of the financial industry.
SYCAP Group will achieve this by offering the most user
friendly, customizable and functional software available in the
marketplace together with unmatched customer service.
CFDs
CFD (Contract for Difference) is the agreement to exchange the
difference between the price when the position was opened and the
price when the position was closed.
CFDs are an effective and convenient financial instrument for
trading stocks, indices, futures and commodities. The distinctive
property of CFDs is that the delivery of the underlying instrument
does not occur and investors will never become the physical owner
of any shares; instead he/she will hold a contract with the CFD
provider to exchange the difference in price between the entry and
exit price.
This means that an investor can trade speculate in the movement
of shares, commodities, currencies or any other financial
instrument without having to have several account types or conduct
any currency exchange.
CFDs were introduced in the UK about 30 years ago by investments
banks to hedge their exposures, and were adapted by the retail
sector in the 1990s, presenting the opportunity to the individual
investor to trade in thousands of global shares. Growing popularity
of CFDs is proven not only by an increasing number of firms that
offer this type of trading but by large trading volumes as
well.
Spread Betting
Spread Betting in its basic form is a very simple concept. If
you think a market or instrument will go up then you buy it or if
you think it will go down then you simply sell it. By offering a
wide range of instruments our clients can profit from rising and
falling markets around the world.
One of the main reasons for Spread Betting is the fact that
gains are tax free in the United Kingdom and this is why the
popularity of the product has expanded very quickly.
The thought behind SYCAP Group AB is that by creating its own
software as opposed to licensing another software package it could
achieve a competitive advantage and considerable cost savings.
SYCAP Group AB earns considerable income from license fees
generated by its trading platform called the PRIME Platform™.
Currently there are very few providers of CFD and Spread Betting
software and a limited number of companies that offer the services
to end users. This is why SYCAP is well positioned to gain market
share in this exploding industry.
REVENUE MODEL
SYCAP's ability to generate growth in revenue depends on its
ability to:
- Grow its active client base through effective marketing,
additional White Label partnering and the development of new
product capabilities. This part is related to the company Gekko
Global Markets Limited.
- Increasing the number of companies that license the software
(mainly the PRIME Platform™) that the Swedish entity SYCAP Group AB
provides.
GOALS 2009 - 2012
Gekko Global Markets Ltd
- Reach over 30,000 live accounts;
- Annual revenues over £20 million.
SYCAP Group AB
Annual revenues over €1.2 million during 2010.
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