The Swedish online stockbroking service Avanza is to launch in the UK next year, and claims it will be backed by a multi-million pound marketing campaign.
Avanza is on the verge of launching in Germany and plans to expand to the UK and Holland next year in its bid to establish a pan-European online service.
The service operates on a flat fee basis and boasts more than 30,000 customers in Sweden, where there are at least 15 online stockbroking services. Under the existing business model in Sweden, customers have to deposit about &£800 in cash or shares before they can trade, at a rate of E12 (&£7) for each transaction.
Chief marketing officer Marcus Gibreus is already in discussions with a creative agency for the UK launch. Avanza uses Mediacom in other markets and is likely to use the same media agency in the UK.
Gibreus says: “The UK media market is very cluttered and we will be out there advertising in line with the rest of the online broker services.”
The company will also attempt to gain publicity through stunts. In both Germany and Sweden it launched a recruitment campaign by distributing halves of $100 (&£67) bills outside large financial institutions. It promised to give the remaining half to those recipients that submitted their curriculum vitae.
Avanza secured its first round of external funding last year, with an injection of &£10m. It is seeking a second tranche to help pay for the expansion of the service.