Capital.com is continuing its expansion with the launch of a desktop trading platform. The company launched earlier this year with a mobile-first focus after receiving a $25 million investment.
The company’s desktop trading platform is the result of a partnership with UMSTEL, a technology company that is developing a web-based multi-asset trading platform.
Capital.com is soon planning to complement its mobile and desktop offering with its SmartFeed tool. The company has been developing an AI-based feature to facilitate trading decisions made by its clients. The tool’s development is advancing and the company is expected to bring it to market in November 2017.
SmartFeed is going to use its AI algorithms to detect trading biases and provide users with specifically adapted content.
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Commenting on the matter, the CEO of Capital.com, Kira Bondareva, stated: “One of the most exciting aspects of Capital.com’s app is its ability to identify – and work to correct – common behavioural biases, which are proven to have a negative impact on investors’ trading results.”
A common behavioural problem for traders, biases can range from over-confidence to familiarity to confirmation and can materially affect a trader’s performance. Capital.com states that it is aiming to mitigate the risks for retail traders and enable them to make better trading decisions.
Artificial Intelligence to the Rescue
With the launch of its new tool next month, the company will become a pioneer in addressing one of the key reasons for retail trader underperformance. While professional traders spend their careers trying to mitigate the risks associated with common behaviour patterns, retail traders typically lack the knowledge to address them.
Capital.com’s solution is also key to addressing major concerns on the part of financial regulators regarding the suitability of retail investors to trade complex financial instruments such as leveraged products.
The AMF of France last year became the first major regulator in Europe to express concern about the performance of retail traders of CFDs. It proceeded with an advertising ban on the industry which has materially affected the market. This was the first of many regulatory actions taken by EU regulators.