Slovakian software development company PineByte is aiming to become a white label provider for social trading after the acquisition of U.S. based social trading portal FX Junction. Speaking to Finance Magnates, a company spokesperson explained that the firm believes that social trading is still in its early development stages as a subindustry.
PineByte has acquired all of the assets of FX Junction, in a deal which is entirely financed by equity capital. The financial terms of the deal have not been disclosed by the companies.
“Social trading has huge growth potential not only as a social trading platform but as a software which could be licensed as a white label solution for brokers as an additional tool to keep their clients engaged in sharing ideas and trading on their platforms,” the spokesperson of the company elaborated.
Looking at FX Junction, the company shared that the website has has been averaging approximately 600 new members a month with 35 per cent of those actually linking their trading accounts to their FX Junction profile.
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Aimed at traders willing to exchange trading ideas, FX Junction allows users to link their trading accounts to the website and copy trades from other members of the community. The network is open which allows PineByte to tap a relatively big user base. That said, there is no official information about how many of the 24,000 registered users are active on the website.
Further elaborating on the company’s white label solution, the firms representative explained, “The direction we are moving toward is developing our white label business, make the community compatible with mobile technologies, move into other asset classes including futures and securities as well as diversify into other trading technologies.”
PineByte is a private company which is focusing on a diversified set of offerings related to FinTech. The new social trading player will continue to look for investments in financial services firms that have the ability to scale into new markets.