Futures brokerage Lind-Waldock is working to establish itself in Canada, and given the country’s resource-driven economy, the Chicago-based firm’s executives are optimistic about the prospects for growth in Canada’s commodity-trading market.

Lind-Waldock, which is owned by MF Global Ltd., has established itself in the United States as a futures brokerage catering primarily to individual retail investors. This year, the firm expanded the brand into Canada by taking over the retail futures clients of MF Global Canada Co., with offices in Montreal, Toronto and Markham Ont.

The Canadian market made sense as Lind-Waldock’s first location outside the U.S. since commodities are so prevalent in this country, according to Mark Sachs, president of Lind-Waldock.

“Canada is so rich in natural resources and Canadians are so closely tied to those markets that it’s just a natural extension for us,” said Sachs at a launch of the brand in Toronto on Thursday.

Canadian investors had expressed interest in the company’s futures trading services prior to the Canadian launch, Sachs noted, with Lind-Waldock’s U.S. offices already serving a base of Canadian clients.

The firm has found a niche in the market, since few futures brokerages specifically cater to individual investors. Sachs said that while Canadians have access to futures markets, there is a lack of educational resources, which is an area of focus for Lind-Waldock. The firm offers online resources and courses that outline the basics of futures trading for beginners, as well as webinars and research for more advanced investors.

Many Canadian investors understand commodity markets, but lack awareness on the investment options available, according to Keith Riddoch, managing director of retail sales at Lind-Waldock in Canada. Retail investors often seek exposure to commodities through equities of resource companies rather than getting more direct exposure through futures.

“Basically, we’re trying to explain how commodities can be useful for the individual investor,” said Riddoch. “We need more work on actually educating investors about the commodity markets and how they may benefit.”

The firm offers investors the option of working with a broker who provides advice and guidance, or trading independently with a self-directed account. The firm has roughly 4,000 commodity-trading clients in Canada, most of which are relatively knowledgeable on investing. More than half of the clients work with the firm’s 23 brokers for support, according to Riddoch.

“They still need a little bit of guidance on what they should be doing in the market,” he said. “It gives them that sense of security.”

Most clients work very closely with the brokers, often touching base on a daily basis, Riddoch said. “It’s a very close relationship — probably a little bit closer than you would see in equities, because of the volatility and because of the leverage factor,” he said.

IE