Huddlestock announced on Thursday, January the 9th, that German Huddlestock GmbH has signed a Letter of Intent (LOI) with Germany-based AVL Finanzvermittlung Beteiligungen (“AVL”) to offer trading and investing in all types of instruments to German clients.
Huddlestock has signed a LOI with the aim of establishing cooperation between Huddlestock and AVL to offer trading in all types of financial instruments, initially planned for the German market. Through this collaboration, the parties intend to leverage their respective resources, expertise, and networks to create a platform for investing in financial products such as equities, investment funds, ETF:s, futures, and fixed income products. AVL will interface and be responsible for client relations with the end client, while Huddlestock will provide the technological, regulatory, and procedural infrastructure and services related to trading and investing. The LOI is expected to lead to a contractual cooperation agreement between the parties within a short period of time.
The anticipated final agreement is a cooperation agreement between Huddlestock and AVL involving the purchase and sale of financial instruments offered through Huddlestock’s cooperation partner, Baader Bank. Huddlestock’s expected revenue consists of a combination of retail fees and trading commissions.
Analyst Group view on Huddlestock
“The intended collaboration with AVL and the signing of an LOI are strategically significant, reconfirming Huddlestock’s presence in the German market, estimated to be a significant growth driver in the future. Additionally, it serves as validation for Huddlestock’s technology and Investment-as-a-Service offering, as AVL, a progressive and successful provider of investment services in the German market, chooses to collaborate with Huddlestock to expand the offering and reach new target groups. The German market, with approximately 12.9 million people owning shares, equity funds, or equity-based ETFs, along with the demand from banks, private banks, and online banks for a digital offering in trading and investing, presents significant opportunities for Huddlestock as an Investment-as-a-Service provider. Huddlestock has been present in the German market since 2019, including deliveries to, among others, Solaris Bank. Given a successful collaboration with AVL and the initiation of cooperation between Huddlestock and AVL, Huddlestock can penetrate the German market with an already established and successful player.´”, says the analyst at Analyst Group covering Huddlestock.
AVL was founded in 1997 by Uwe Lange in Weinstadt near Stuttgart. Since then, AVL has successfully brokered products with an investment approach at favorable conditions through a digital offering. As an independent, owner-managed company based in Weinstadt near Stuttgart, AVL Finanzvermittlung is today one of the leading financial brokers in the discount segment, with more than 180,000 customer accounts, over 60,000 end customers, and an invested volume exceeding 2 billion euros.