“Following our previous communications to you regarding the transfer of your Paddy Power Trader account to Capital Spreads, we are writing to confirm that this will take place this weekend on Saturday 9th April.” That was the message account holders with Paddy Power Trader received this week to let them know that their stay with the site had officially come to a close.
Last month Paddy Power told London Capital Group Holdings plc (LCG), the online financial spread betting and trading company, that it will exit the financial spread betting business and terminate its white label agreement with LCG. Since Paddy Power Trader accounted for 17 per cent of LCG’s total active clients, shares in LCG plummeted nearly 15 per cent following the announcement.
Now, it’s official. LCG’s Capital Spread brand will be taking over the all of the accounts passed from Paddy Power Trader effective April 9 2011.
Paddy Power Trader is promising its clients that they will enjoy the same level of service and additional services such as mobile connectivity. Question marks do surround the future strength of the Capital Spread brand and how much of the Paddy clients they will be able to retain as their own.