BinckBank has reported the outstanding finance from its turbo range amounted to €130.3m in the first quarter of 2015, up from €92.8m in the fourth quarter of 2014.
Income from this outstanding finance came to €503,000 in the first quarter, up 45% from €300,000 in the previous quarter. The number of Binck turbo transactions rose to 148,226 in the first quarter of this year, compared with 101,490 in the fourth quarter of 2014.
The Dutch online broker has achieved a significant share of the market for leverage products since the launch of its first turbo in July 2014, cementing its place as one of the top three providers in the country.
That gives an indication of how big we are as a distribution platform, especially when you take into consideration that Binck turbos are only available to our own clients
For March 2015, measured across the whole Dutch market, the broker’s market share was 22% of turnover and 21% in terms of number of transactions, according to Jean-Paul van Oudheusden (pictured), head of business development for retail at BinckBank. “That gives an indication of how big we are as a distribution platform, especially when you take into consideration that Binck turbos are only available to our own clients,” said Van Oudheusden.
To calculate its market share for March, Van Oudheusden has added the figures for the Binck turbos, which are traded via the German Cats platform, to the figures provided by Euronext Amsterdam. According to the exchange, BNP Paribas had a turnover of 33% in March, followed by ING (22%), Goldman Sachs (14.5%), Commerzbank (7.6%) and Citi (3.3%), while in terms of the number of trades ING topped the table with a market share of 32.6%, ahead of BNP Paribas (31.9%), Commerzbank (10%), Goldman Sachs (8.6%) and Citi (5.7%).
The Binck turbo has been live for 10 months now and so far expectations have been met, according to Van Oudheusden. “We are in it for the long term,” he said. “We do not really have a hard target. We see that our customers use turbos and over some periods [the markets are] more volatile and people might use more turbos and other times they might use fewer.”
Of all retail transactions on its platform in the Netherlands in the first quarter, 17% involved a turbo, according to the broker’s quarterly report. BinckBank also offers turbos from five other providers to investors in the Netherlands in addition to its own turbos.
Leverage products aside, Think ETFs, a 60% subsidiary of BinckBank, passed the €1bn in assets under management (AUM), thanks to the growing demand for index trackers since the ban on distribution fees, while Binck Fundcoach, a platform for funds and ETFs which has more than 14,000 active customers, also had a strong first quarter, Binck reported. The positive market sentiment and the further decline in the interest available on savings accounts contributed to 14% growth of AUM for Binck Fundcoach, taking it to €614m by the end of the quarter, compared with €538m at the end of 2014, according to Binck.
Click here to read BinckBank’s Q1 report for 2015.