CMC Markets is said to be planning the launch of a new retail investment platform as it looks to replicate the success of rivals such as Hargreaves Lansdown.
The online trading firm, founded by tycoon Lord Cruddas, will this week unveil plans for a new platform offering access to self-invested personal pensions, ISAs and third-party funds, Sky News reported.
The new offering, which could be branded CMC Wealth, is slated for a full launch as soon as the end of this year.
The plans, which will be announced alongside CMC’s full-year results on Thursday, mark the company’s efforts to win market share from rivals Hargreaves Lansdown, AJ Bell and Interactive Investor.
Investment platforms have cashed in on a surge in trading volumes during the pandemic thanks to market volatility, lower consumer spending and a retail trading frenzy linked to Wall Street’s meme stock craze.
Cruddas, who set up CMC in 1989, is said to have been spurred on by strong performance at his own company.
The City firm, which offers services such as spread betting and forex trading, has upgraded profit forecasts several times this financial year.
It is expected to lift its dividend for the year on the back of this strong performance, leaving Cruddas in line for a payout worth tens of millions of pounds on his controlling stake.
It follows revelations last week that Cruddas donated £500,000 to the Conservative Party just days after his peerage was confirmed.
The tycoon, who previously served as Tory treasurer, attracted controversy in 2012 after he was implicated in a cash-for-access story published in the Sunday Times.
He successfully sued the newspaper for libel and was cleared by the Electoral Commission, though his damages were later reduced on appeal.
CMC Markets has been contacted for comment.