We have seen big brands like Pepsi, Puma, and Samsung sponsoring football teams. But numerous forex brokers have sponsored popular football clubs. What goes behind the deals?
As everyone knows, all global sectors were affected by the COVID-19 pandemic in 2020, including the football industry and its various sponsors. You may hear news of matches being canceled or clubs playing behind closed doors in empty stadiums. This was the case for the Premier League, which had to postpone all matches on March 2020 and resume them later without spectators.
For all business sectors, that period was like a nightmare because most of football clubs' income come from sponsors who at that moment were experiencing losses. Football backers from the aviation industry (Emirates) and hospitality (Marriott) have been hit the hardest by the pandemic. Believe it or not, high-risk financial firm Basset & Gold, which sponsored West Ham United, had declared bankruptcy due to the Coronavirus outbreak.
Some sponsors even issued a contract clause to remove their liability in funding the clubs. PSG's main sponsor for the 2019-20 season, French hotel group Accor, also withdrew from paying the full amount of the contract, albeit, in the end, they did pay.
However, one business sector has come out strong during and after the pandemic: forex brokerage.
Did Forex Brokers Save Football Industry?
While almost all business sectors suffered during the pandemic, the trading industry, including offshore online brokers reported record earnings in 2020. For instance, FCA-regulated IG's net revenue increased 36% to £649.2 million. Another brokerage, CMC Markets, ended FY2021 with an operating income of £409.8 million.
When a club like Arsenal was so broke they had to fire the team's mascot as part of a cost-cutting plan, huge sums of money were pumped into the club by retail brokers. Meanwhile, Royal Forex of online trading brand ROinvesting, became AC Milan's giant sponsor in April 2020 after donating EUR50,000 to the AC Milan foundation to fight the pandemic.
Several other brokers gathered to sign football sponsorship deals as well, including eToro, Libertex, easyMarkets, Axi, GO Markets, and so on. Not to mention brokers from outside Europe.
Actually, the collaboration between football and the online trading sector has started since 2010. Afterward, many brokers allocated more than 70% of their investment to finance football-related deals.
During the Coronavirus outbreak, the money-making forex brokers start pouring out funds towards the sports industry to increase their reach in sports audiences. Consequently, it could be said that brokers have saved the football industry.
Benefits of Financing Football Club
Out of the many marketing strategies, why do brokers really like to partner with football clubs? The ultimate reason, of course, is that the football team sponsorship business turns out profitable.
The next answer is brand credibility and trust from the clubs. As we know, football clubs and players are very well known worldwide, so by partnering with them, broker brands are expected to make money from exposure.
Below are 5 other reasons why brokers are willing to spend millions of dollars to fund clubs:
- The fee conveys a message of strength.
- Receiving global brand awareness.
- Getting the right to use images of famous football teams or players to promote their content.
- An effective method of acquiring clients, especially when integrated with marketing campaigns.
Now you understand why forex brokers work with international footballers or teams, despite the high costs involved, right? Although most brokers prefer to associate with big clubs, some pursue strategic alliances with smaller clubs. This makes sense because smaller clubs usually have very strong regional fan bases and, most importantly, need more backing compared to giant clubs.
Apparently, the game plan between forex brokers and football clubs has a win-win situation for both parties, as brokers often extend their contracts and support different clubs at the same time.
5 Brokers That Score Notable Deals with Football Clubs
Here are the 5 broker brands that currently sponsor top football clubs:
1. IC Markets
Starting this list is the leading forex and CFD broker, IC Markets supports no less than 12 football teams in the Spanish La Liga professional league and the German Bundesliga.
La Liga teams signed to IC Markets are RCD Mallorca, Cadiz, Real Sociedad, Athletic Club Bilbao, Getafe, and Granada. On the Bundesliga side, IC Markets is the official partner for Bayer 04 Leverkusen, Hertha BSC, FC Augsburg, DSC Arminia Bielefeld, Greuther Fürth, and VfL Bochum.
Under sponsorship terms, the IC Markets brand will gain exposure to viewers via LED displays installed on the team's home grounds, logo, and IP rights, as well as access to VIP experiences and merchandise. This affiliation is facilitated by the global sports business company, SPORTFIVE.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
This year, RoboForex becomes the official partner of the club from Deutschland, Eintracht Frankfurt, the holder of the German champion status and five-time national cup winner. RoboForex is interested in funding because the two worlds of trading and football are closely related; they are both full of emotion, adrenaline, experience, and determination.
Throughout the partnership period until the end of the 2023/2024 season, RoboForex becomes Club Premium Partner, where both parties can collaborate on marketing initiatives and share information with each other.
Well-known as one of the most committed brokers in trading technology advancements, RoboForex reaches out to a wide range of traders, from beginners to the more experienced ones who seek sophisticated trading environments with ECN-like spread and execution. The company is established in 2009 and holds a head office in Belize. Registered under the IFSC Belize, RoboForex manages to attract clients with fantastic leverage as high as 1:2000.
As for the service for European-based traders, RoboForex specifically operates a different brand called RoboMarkets that is still a member of the head company (Robo Holding Company) and has an office in Cyprus. The operation is licensed under Cyprus Securities and Exchange Commission (CySEC).
Following its commitment to be the forefront in terms of a high technology forex broker, RoboForex provides various trading platform choices including MetaTrader 4, MetaTrader 5, cTrader, Social Platform, and its proprietary platform.
Trading instruments range from Currencies to Metals, Indices, Energies, Stocks, ETFs, and Cryptocurrencies. Aside from basic service, trading in RoboForex also presents a collection of distinctive features such as the PAMM system and Social Trading network developed with their own brand of CopyFX, ETFs, and stocks that reaches up to thousands as the available trading assets, tight spreads, and payment method via Bitcoin and Ethereum.
RoboForex also accepts payment through a surprising online gateway besides wire transfer and credit card. The alternative methods are Skrill, Neteller, FasaPay, UnionPay, WebMoney, Perfect Money, Qiwi, and other similar online payments.
After opening an account, traders can start with a minimum deposit as low as $10 in Pro Accounts. To specify, here is a short description of each type of accounts that traders can choose from in RoboForex:
- Minimum Deposit: $10
- Spread: from 1.3 points
- Minimum order volume: 0.01
- Leverage: up to 1:2000
- Minimum Deposit: $10
- Spread: from 0 points
- Minimum order volume: 0.01
- Leverage: up to 1:300
- Minimum Deposit: $5,000
- Spread: from 0 points
- Minimum order volume: 0.01
- Leverage: up to 1:100
- Minimum Deposit: $10
- Spread: from 1.3 points
- Minimum order volume: 0.1
- Leverage: up to 1:2000
- Minimum Deposit: $100
- Spread: from $0.01
- Minimum order volume: 1 stock
- Leverage: up to 1:200 (during the trading session) and up to 1:4 (after the trading session)
The R Trader account signifies RoboForex's attempt to distinguish forex and stock trading condition. It appears that the platform used in that particular account is RoboForex's in-house product that is specifically designed for stock online trading.
The overall description above depicts RoboForex as a distinguished broker despite its status as an offshore-regulated entity. Not only successful in providing various trading technology, but RoboForex also focuses on stock trading for more conservative traders. However, it is also important to note that RoboForex is one of the few brokers that boldly offer an extremely high perimeter of leverage at 1:2000.
eToro is the main sponsor of AS Monaco with the benefit of getting exposure in all team matches. Through this collaboration, the eToro logo will be displayed on the club shirt in European games.
Furthermore, eToro has been featured on AS Monaco's Training Kit and the players' training outfits since the start of the preseason. eToro will be assisted by the club in creating an accessible financial market, as well as socializing fans to the investment industry. This partnership reflects eToro's commitment to getting to know AS Monaco fans while building brand awareness in the French league.
Satisfied with the growth, competitiveness, and innovation of both companies in the 2020-2021 period, they extended the agreement for another season.
eToro does not solely ally with one team. Since 2018, the multi-asset investment platform has been a partner of Southampton FC. As part of the cooperation, eToro has in-stadium branding on LEDs, media backdrops, and content on Southampton digital channels.
eToro established in early 2007, with a mission to make trading accessible to anyone, anywhere, and reduce dependency on traditional financial institutions. The company has head offices in the United Kingdom, Cyprus, USA, and Australia.
eToro (Europe) Ltd operates as a Financial Services Company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under license no. #109/10. Meanwhile, eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA) under the license FRN 583263.
As for eToro AUS Capital Pty Ltd, the legal standing is acknowledged by the Australian Securities and Investments Commission (ASIC) to provide financial services under Australian Financial Services License 491139.
A broker that belongs to the 4-digit type, eToro offers both short-term options for day traders and long-term options for investors, such as their innovative CopyPortfoliosTM, a fully managed thematic portfolio.
Since 2007, eToro has been at the forefront of the Fintech revolution. The most recent was launched in 2017, which is CopyPortfolios powered by Machine learning Al. Beyond developing CopyPortfolios, the company integrated Microsoft's machine learning technology into Momentum DD.
The new CopyPortfolio investment strategy uses artificial intelligence to find the steadiest traders who are most likely to generate a double-digit return and bundle traders into one fully-managed portfolio. eToro has hundreds of financial assets for trading across several categories including stocks, commodities, crypto assets, currencies, indices, and ETFs. Each asset class has characteristics and can be traded using a variety of investment strategies.
Some positions on eToro involve ownership of underlying assets, such as non-leveraged positions on stocks and cryptos. Employing CFDs will enable a variety of options, such as leveraged trades, short (sell) positions, fractional ownership, and more. For example, traders can invest as little as USD100 in gold, even if a single unit of gold cost USD1,000. Some of eToro's most popular CFD commodities include gold, oil, natural gas, silver, and platinum.
Currencies are traded on eToro only as CFDs. Also, CFDs enable Sell (short) positions and leveraged trade, even for assets that don't offer the option in traditional trading. Some of the popular currencies include EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD.
Furthermore, An Exchange-Traded Fund (ETF) is a financial instrument comprising several assets grouped to serve as one tradable fund. After opening an account in eToro, traders can invest as little as USD250 in an ETF that costs USD500. Some of the popular ETFs on eToro include SPY, VXXB, TLT, and HMMJ.
However, eToro also offers additional functions using CFD trading. All leveraged ETF positions in the UK are under FCA regulations. Meanwhile, all CFD positions executed by eToro Australia are under ASIC regulations.
The company has other advantages. In all financial assets that can be traded, eToro does not charge any deposit or trading frees other than spreads.
eToro charges a USD25 fee for withdrawals and the minimum withdrawal amount is USD50. Long (Buy), non-leveraged crypto, stock, and ETF positions are not executed as CFDs and do not incur any fees. eToro does charge overnight or weekend fees for CFDs positions, such as leveraged positions and short (sell) orders.
Fee updates always apply to open positions. Fees are subject to change at any given time and could change daily, without prior notice, depending on market conditions.
As a beginner, trader can use CopyTrading eToro. Different from the features of other brokers, traders can copy the strategies of professional traders without fee or profit-sharing. Therefore, 100% profit is fully owned by traders. For example, while trader A who is copied by trader B, produces a profit of 10% this month, then trader B also gets a profit of 10%.
The company is the world's leading social trading network. Since eToro operates in complete transparency, each trader has valuable information on their eToro profiles, so other traders that are interested to copy their trades can have assistance in creating their best portfolios.
Another feature that is unique to eToro is the personalized, social News Feed. Just like on any social media, traders can post their updates on feed, comment on other's posts, and gradually create a feed that is tailor-fitted to trader's trading and investing interests. On eToro social trading platform, traders will also get notifications when a trader writes a new post and many other important updates.
Generally, sponsorship contracts last for a season or two, but FC Bayern signs with Libertex until 2025. This is the first time Libertex has sponsored a German club. Combining the fast-paced world of football and trading, this contract allows Libertex to share their brand on FC Bayern's social media channels and all home matches in Allianz Arena.
Libertex, previously known as FxClub (Forex Club) is a forex broker for retail traders. As of 2019, Libertex.org provides trading services for English-based clients, and the company is managed by Libertex International Company Limited in St. Vincent and the Grenadines. Meanwhile, fxclub.org continues to operate mainly for Russian clients.
Libertex Group claims to have a long-standing history since 1997. With more than 20 years in the financial market and online-trading industry, the broker is serving clients in over 110 countries around the globe. It operates under the regulation of the Cyprus Securities and Exchange Commission (CySEC) with CIF Licence number 164/12.
Traders with keen interest in MetaTrader5 can join Libertex and register for a special type of account labeled as MT5-Instant, with spreads starting from 0.6 pip, no commission, and maximum leverage of 1:500. MT5-Markets is also open for traders looking for market execution. The spread starts from 0.5 pips, but there is a minimum fee of $0.04. Meanwhile, the popular MetaTrader 4 platform can be accessed with an MT4 dedicated account. The trading specs are extremely familiar with MT5-Instant, so there's almost no need to compare the two accounts other than from their respective trading platform.
What sets Libertex apart from other brokers is its incentive to provide traders with a specific account type based on their proprietary platform called Libertex Mobile App. In this case, traders will automatically gain trading experience with market execution with a commission from 0.03% and a minimum trade volume from $10. However, the spread information for this particular account is mysteriously hidden.
Speaking of trading assets, Libertex does not only focus on forex. Thus, traders are also given the option of trading stocks, cryptocurrencies, metals, indices, agriculture products (in CFDs), Oil and gas, as well as ETFs. The various class assets come in handy with Libertex Mobile App, thus making the platform one of the rare mobile trading technology with so many cross-market instruments.
To sum up, Libertex is a forex broker identified as Libertex for English-speaking traders. The platform trading range is quite refreshing, but the difficulty in finding important details on payment methods and spreads give the broker bad reputation in term of transparency. However, trading in Libertex is quite ideal for new traders as the minimum deposit starts is relatively low. The optimized mobile app is also worth trying as it has its own trading specs that make it even more special.
New York Red Bulls announced that the forex trading platform OANDA became the club's official partner when the soccer team hosted the Portland Timbers at the Red Bull Arena last May.
The OANDA logo is attached to the right sleeve of the jersey and is included in certain club outfits. Authentic club jerseys are available for purchase too at retail locations. In addition, this assistance extends to the broader Red Bull sector, including branding opportunities at Red Bull events and media.
Traders looking for brokers with accurate precision, OANDA can be an option. That is because OANDA is a broker that provides quotes with 5-digit accuracy and active price movements that follow market developments. Order execution speed is also faster in this broker.
It provides benefits for novice traders, as they can trade with smaller volumes using the calculation system based on currency value, unlike other brokers adopting the lot system.
Founded in 1996, OANDA was built by Dr. Michael Stumm who is a lecturer in Computer Engineering at the University of Toronto, Canada, along with his colleague, Dr. Richard Olsen of The Olsen Ltd., which is one of the leading econometric research institutes. They have a head office in San Francisco, United States.
OANDA branch offices can be found everywhere. Some of these offices are located in the United Kingdom, Singapore, Japan, and Canada. With this number of offices spread, OANDA has increasingly attracted the attention of clients worldwide.
OANDA's company is registered under several well-known jurisdictions in financial trading. They are regulated by CFTC and NFA in the US, FCA in the UK, ASIC in Australia, and many others. Traders do not need to worry anymore about security when trading in OANDA. However, these advantages make trading rules at OANDA more stringent compared to other brokers.
For example, OANDA only allows maximum leverage of 1:20, because the rules in the US and Japan do not allow leverage above that. Besides, the registration procedure is more complex due to various additional requirements that are not submitted by other forex brokers. On top of that, hedging is not allowed in one trading account as the client must open an additional account to hedge.
Nevertheless, OANDA is known for being a leading broker with many advantages offered. OANDA faces increased market risk during periods of price volatility, such as economic and political news announcements. When market spreads increase or decrease, their pricing engine widens or narrows spreads accordingly. That way, traders can get the latest conditions from price movements in the market more quickly.
Prices move very fast in the market. Especially when news releases have a large impact on market volatility. This condition is often exploited by brokers to take advantage of clients with Requotes. However, traders do not need to worry about additional costs when trading with OANDA.
The company never withdraws Requotes so traders can get maximum profit. When traders are unavailable to monitor open positions, they can set take profit orders to lock in profits and Stop Loss orders to help protect against further losses.
As an experienced and well-known online forex broker, OANDA is committed to maintain an efficient trading environment that reduces latency and provid tools to help clients manage the degree of acceptable slippage.
With a fast & reliable trading platform by OANDA, clients' trades are executed in 0.012 seconds. This suits traders who choose brokers based on execution speed.
Because of this exceptional execution service, it is not surprising that OANDA won many awards, including the winner of the world's Best Retail FX Platform at the prestigious e-FX awards. The broker is also voted number 1 for Consistency of filling trades at quoted prices, Execution speed, and Reliability of platforms.
There is no minimum deposit or minimum balance required to open an OANDA account. Deposit and withdrawal can be done easily. OANDA provides a variety of payment method facilities, including Paypal, Wire Transfer, Credit Card, and Debit. Traders can adjust it to the region where they live.
OANDA provides more than 100 trading instruments, including 71 currency pairs, 16 indices, 8 commodities (Brent Crude Oil, Copper, Corn, Natural Gas, Soybeans, Sugar, etc.), 6 Bonds, and 23 Metals.
The fxTrade and MetaTrader platform are available at OANDA. These platforms can be used for Desktop and Mobile. Another plus is they have an OANDA Technical Analysis that exists in collaboration with a technical analysis provider called Autochartist.
With these platforms, clients can monitor price movements easier and automatically recognize patterns created on charts, as well as receive alerts when the awaited patterns appear. Access to this technology can be enjoyed free of charge.
In conclusion, OANDA is an ideal broker for traders in need of fast execution backed by many years of experience. The company is also a good alternative for those looking for a well-regulated broker with flexible trading and deposit conditions.
A Venture Full of Benefits
Putting any brand in front of many football fans turned out to be a very profitable business strategy for brokers. According to SportQuake, brokers collectively spent $125 million to sponsor football teams in the 2021-2022 playing season, an increase of 49% YoY.
Most forex brokers that promote football clubs are legit, safe, and regulated. After all, the teams from the football sides have their own standards in conducting inspections to prospective sponsors. This could work as another filter to scale a broker's credibility, in addition to checking out their key aspects in providing reliable service to forex traders.