London Capital Group (LCG) is making the transition from being a spread betting and contracts for difference (CFDs) provider to becoming an introducing broker. As part of the move, the LCG has tapped its UK-based rival, IG Group, as its first third-party trading platform provider, the company confirmed to Finance Magnates on Tuesday.

LCG Becomes an Introducing Broker

Under the new arrangement, LCG said it will focus on providing its clients with ‘boutique’ and relationship management services while IG Group will provide the platform, pricing and execution services. The firm also plans to onboard other ‘leading third-party platforms’ in the future.

Recent developments show LCG's transition plans have been in the works for months. In January, Dave Worsfold, Matt Basi and Stuart Dorward took over the management of the company as the Chief Executive Officer, Managing Director and Head of Sales and Trading, respectively. In the following month, LCG announced that it had signed a new partnership deal with IG Group to leverage its technology. It also said it will engage other “industry leading providers” as part of “the new evolution of LCG.”

“By partnering with IG for the technology, pricing, execution, on-boarding and holding of client money, we are free to re-shape the business to focus on service and relationships,” Basi told Finance Magnates. “We’ve re-staffed the business accordingly and are really excited about the team we’re building, all of whom have deep experience and we’ve worked with before.”