Cantor Fitzgerald, the New York-based international financial services firm, is stepping into the wealth management industry, eyeing individuals with at least $5 million but with an emphasis on those with $50 million, Reuters reports, citing an emailed statement from Stan Gregor, co-chief executive of the new unit called Wealth Partners.

According to the news service, a spokesperson confirmed that the firm is branching out from its core business of electronically trading bonds with other brokers and plans to start managing assets for wealthy individuals “around the end of the year”. The firm had not responded to a request to confirm the move at the time of publication.

Chief executive, Howard Lutnick, has “amassed a wide range of new businesses to offset lower income from trading commissions that have fallen due to technology and declining volume,” it said.

Gregor joined the firm earlier this year from Wells Fargo, where he was a private banking executive.

As highlighted in the report, the wealth management industry is becoming more popular as firms search for “steady fees” to offset more volatile investment banking and trading revenues. Many firms have also been negatively affected by low interest rates in recent years, resulting in certain business segments lagging others. It is worth noting that the wealth management market, is, however, highly competitive.

Wealth Partners will bring in independent investment advisors and brokers, who Gregor reportedly said prefer charging fees rather than selling commission-based investment products.

Besides its US locations, Cantor Fitzgerald has a strong presence in Europe - with offices in London, Paris, Milan, Nyon and Zurich - as well as branches in Asia-Pacific and the Middle East.