New Hoodless Brennan CFD threatens other brokers’ profits?

Award-winning stockbroker Hoodless Brennan has this month launched a new CFD (contracts for difference). Continuing its campaign to offer investors better value products with transparent costs, Hoodless Brennan’s new service could pose a serious threat to existing CFD brokers’ with its highly competitive commissions and attractive financing.

Hoodless Brennan’s own competitor research conducted in September 2006* showed how its new CFD service would set the bar to offer great value:

The clear and transparent charging policies of Hoodless Brennan’s CFD are also likely to prompt investors to find out exactly how much they are paying their current broker. Some CFD brokers are offering headline-grabbing zero commission deals, but profiting from investors by increasing the size of their buy and sell spread prices as well as finance charges. Hoodless Brennan’s CFD charges are very different; a low 0.10 per cent commission rate with thin spreads and attractive financing. 

Hoodless Brennan has earned a deserved reputation as consumer champions by repeatedly beating competitors on price and value. Back in 2002 the Docklands-based broker set the standard by slashing online share trading commission cost to a flat £7 per trade – irrespective of trade size.  Industry commentators suggested at the time that Hoodless Brennan could not survive on this rate, but more than four years later it is still charging £7 per trade, still the lowest commission on the market, still independent and still winning customers.**  ***

The new CFD product is the latest addition to Hoodless Brennan’s impressive armoury of best value and award-winning products. Since securing the title of lowest cost online broker**** Hoodless Brennan has launched the UK’s lowest cost self-select ISA & PEP at £7 per trade (inclusive of the annual management fee of £50) and a low cost, simple to use self invested personal pension (SIPP).*****

Hoodless Brennan’s new CFD service looks set to once again cause a stir and could have a significant impact in the market. The key question for the industry is whether Hoodless Brennan’s entry into the market will trigger a price war in CFDs and drive down costs for investors as it did in 2002.

This ambitious company’s goal to deliver great value products and services does not  stop at CFDs.  CEO Nigel Smith is keeping quiet on the details, but he says the company is preparing for the launch of further new products in 2007:

“We are investing in extensive product development and IT to offer investors market-leading products at the best value. We are currently working on a pipeline of new products and each of these will stick to our policy of excellent value and transparent charges. Watch this space.”

“Intelligent investment in new technology and the fantastic problem-solving skills of our development team means our internal costs are lower and we pass these savings onto our clients.”

Find out more about Hoodless Brennan CFDs at www.hoodlessbrennancfds.com

* Market survey of Online CFD providers in the UK by Hoodless Brennan September 2006.  Survey looked at brokers that provided services by commission, not increased spreads and nil commission rates.

**According to www.moneysupermarket.com 27th September 2006, based upon trading £1,000 worth of shares once per month for a year on general online trading accounts and online ISA & PEP accounts.

*** Over 2002 to 2006 RSP trading volume has increased to show Hoodless Brennan grew from 32nd largest online broker in the UK to 9th largest.

****Hoodless Brennan won the Investors Chronicle award for Lowest Cost Online Broker in both 2006 and 2005

***** Source: City Index April 2006