CMC Markets Joins Other CFD Brokers with “Super App” Ambition, Floats a 3-Phase Plan

CMC Markets (Nasdaq: CMCX) is aiming to become a financial “Super App”, the roadmap for which the London-headquartered broker revealed with its latest half-year financial statement filed today (Thursday).

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“Super App” CMC

The broker, whose core business remains contracts for difference (CFD) products, aims to launch its planned “Super App” in three phases.

The first phase, which the company intends to launch next month in the United Kingdom, will see the release of a multi-asset platform with traditional finance (TradFi) products, including equities, derivatives, options, SIPPs, ISAs, wealth solutions and CFDs. In the second phase, it plans to add TradFi and decentralised finance (DeFi) products, with SIPPs and ISAs alongside tokenised products, stablecoins and CapX investing.

It is worth noting that CMC has already piloted the execution of tokenised stocks, as its corporate broking arm, CMC CapX, facilitated the placement of the hybrid shareholding, while StrikeX acted for the issuer to create the mirror token reflecting the shareholding on the Arbitrum Layer 2 blockchain.

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The third phase of the Super App will include the addition of payments and banking products.

CMC is not the only CFD broker aiming for a Super App. NAGA, Swissquote, Tradu and XTB are other big names in the industry that have pushed their own plans to become a financial Super App or even launched a version of it.

However, none of them is close to Alipay or WeChat in China, which let their users access a wide range of services within a single platform.

Market Reacts Strongly

As FinanceMagnates.com already reported, CMC Markets ended the six months between April and September with a pre-tax profit of £49.3 million on net operating income of £186.2 million. It has also raised its yearly outlook by 10 per cent.

Following the results, the broker's shares jumped by almost 30 per cent.

Meanwhile, the company also stressed the growing demand for its API connectivity, pointing out that “hundreds of thousands of retail trading accounts [have been] opened over the last year.” Out of those accounts, about 70 per cent were opened in European countries where CMC does not have any presence.

Although CMC did not explicitly name any of its API partners in Europe, Revolut inked a deal with it to enter CFDs and rolled out services in three European countries: the Czech Republic, Denmark and Greece.

Read more: CMC Connect Breaks Down CFDs Deal with Revolut

“One of our API clients’ turnover increased by over 1,000% in a year, and we saw all that flow through the API connection,” CMC noted in its filing. “It was a new business for the bank and new products for their clients, and flows we would not ordinarily have seen without our API capability.”