Brokers and Sponsorship: News, Research, and Analysis

Competitive sports and Forex trading may seem unrelated, but what if these two fields combine? What does the presence of Forex brokers in the world's most high-profile arena mean? Today, Fazzaco takes a look at the sponsors of soccer and other sports and see how the forex industry has a presence at sporting events.

Why are Forex brokers so fond of sponsoring well-known sports figures or teams?  

First of all, soccer is the most popular sport in the world. Many soccer clubs and athletes are household names. Sports marketing has therefore gradually become an important promotional tool for financial companies. Many Forex brokers sponsor soccer clubs in an effort to build their brand image, raise awareness and attract clients.

​Secondly, there is an overlap in the target customer base of both. It is not just Forex brokers, but also CFDs and binary options brokers, whose main target audience is men aged 25 to 45, who are very interested in investing. This group has a great overlap with sports and soccer fans, which is a unique advantage for brokers to develop new clients, serve their members and conduct marketing campaigns. In addition, studies have shown that there are many fans who are keen investors in Forex trading.

Finally, suppose you are a fan of a certain club, many of you would jump at the chance to meet your idol if you could get a chance to meet them because of trading on the platform, right?

Why Forex brokers choose different recipients?

First of all, it has something to do with the global attention, business value, and money draw of a club or sports figure. We found that most Forex brokers choose to work with the most popular clubs, sports events and sports figures around the world, so that they can not only promote themselves inside and outside the event, but also use star effects to improve their brand reputation.

Secondly, Forex brokers give preference to companies or individuals who share their corporate culture and are in line with their brand concept. Russian forex broker Exness has formed a partnership with the Red Bull Racing team of Formula One (F1), embracing the idea of speed and technology in online trading. UK Forex broker ICM Capital, on the other hand, is the shirt sponsor of the English polo team, which sets them apart in the market by focusing on a specific high net worth audience.  

​Finally, Forex brokers prefer to work with companies that are based in the region where their company is based or where their main operations are located. For example, Plus500, a UK-based Forex and CFD broker, has its main operations in Europe and has not yet invested in the Chinese market, so they chose to sign with Atletico Madrid to expand their presence in Europe. FCA-regulated GKFX, which focuses on the Chinese market, chose to work with AC Milan, which has a large Chinese fan base.

A summary of the marriage between main Forex brokers and ​soccer teams in the last two years?

In November 2020, HotForex announced that it has become Paris Saint-Germain's Official Partner for the current 2020-21 season. With the partnership, the broker will be allowed to get exposure in selected regions and on PSG's digital platforms.

In the very same month, CAPEX.com, a leading global trading broker, announced that it has entered a multi-season sponsorship agreement with Juventus, the most successful club in the history of Italian football, becoming the Club's Official Trading Partner. The sponsorship agreement with Juventus builds on its success story as an awarded broker in the international markets. 

In December 2020, Plus500, a British technology platform for trading CFDs internationally, announced that it has extended its Official Main Sponsorship agreement with Club Atlético de Madrid, for the 2021/2022 season. Having been the Official Main Sponsor of Atlético de Madrid since June 2015, Plus500 will continue to enjoy a range of sponsorship and branding rights, including having the Company's logo featured on the official jersey of the first team.

In May 2021, retail broker FBS have signed a sponsorship with Leicester City, the English football club. The partnership will begin with the 2021/2022 season, with the Foxes wearing the new shirts with the FBS logo for the first time in the final Premier League match against Tottenham Hotspur at King Power Stadium on Sunday 23 May.

​What other sports sponsorship will Forex brokers choose?

​In November 2020, eToro, a global multi-asset trading platform, announced that it has sponsored Rugby Australia, the governing body of rugby union in Australia. The sponsorship makes eToro the Presenting Partner for the 2020 Tri Nations, and the eToro logo will feature on all official branding for the upcoming Tri Nations Series as well as on the Wallabies playing strip. 

In December 2020, CMC Markets, an online forex broker and also a liquidity provider, has entered into a new partnership agreement with the Blues, a New Zealand team for the 2021 and 2022 Sky Super Rugby seasons. According to the agreement, the team's players will wear short marked with CMC Markets logo. Other CMC Markets-related stuff will appear in Eden Park, the largest stadium in the country.

In May 2021, IG Group, one of the largest online trading platforms, has signed a sponsorship deal with England and Wales Cricket Board (ECB) for a period of three years. The partnership will see IG support both the men's and women's teams, with the IG logo appearing on the men's shirt across all three formats of the game. In addition, the partnership gives IG the perfect platform on which to build awareness of its brand and range of investment products, as well as widespread opportunities to create inspiring experiences for its clients and further the goals of its Brighter Future initiative.

In the same month, eToro, a social investment platform, has announced a partnership with Racing League, which will see eToro become principal partner of a team competing in Racing League 2021.

In July 2021, Swissquote, Switzerland's leading bank in online trading services, became the official sponsor of the Zürcher Schlittschuh Club (ZSC) Lions, a professional ice hockey team playing in the National League (NL). In order to further strengthen brand awareness in the Zurich area, the Swiss online trading platform is committed to the Lions for the 2021/22 season. Swissquote will have a logo presence on the official match jerseys of the ZSC Lions and will promote its brand on online and offline advertising platforms.

However, sponsoring a sporting event doesn't always have a positive effect. For example, in November 2020, the breakup of the IC Markets-Inter Milan sponsorship​ was precipitated, at least in part, by actions taken last month by Italian financial regulator CONSOB against IC Markets. IC Markets was suing the iconic Italian soccer club, after Inter Milan cancelled the agreement with IC Markets which was to have seen the Australian Retail FX broker become Inter's sleeve sponsor in a three-year deal worth upwards of €14.3 million. Inter cancelled the agreement after it claimed a breach by IC Markets, which apparently failed to make payments as agreed after an initial €2.5 million deposit was made when the agreement was signed in June. IC Markets has filed a lawsuit against Inter Milan Football Club in the Milan court.

More cases are indicating that an increasing number of forex brokers are enthusiastic about sponsoring sporting events. But this enthusiasm may not last as long as expected when the world is repeatedly hit by COVID-19 waves and sporting events register record-low attendance numbers.