Mitigating Client Risk: InterTrader Launches Trading Signals For CFDs & Spread Betting

How to encourage longevity of trading lifespan among retail clients is a very important consideration for most retail FX firms. The ever-increasing cost of acquisition, added to the competition for business are factors which marketing departments and financial accountants take seriously indeed.

One such proven method is to provide signals and Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term to traders via automated methods, and in the case of InterTrader's intertrader.com division, which attracts a majority UK-based client base, retaining clients and ensuring long term trading is critical in such a CFD and Spread Betting orientated arena with many firms vying for this specific British market.

InterTrader has today added Trading Central's platform to its service, in order to provide its clients with real-time analytics and market information.

Client Longevity

Signal trading platform usage among retail FX brokers has become somewhat de rigeur, and although has resulted in an increase in volumes and longer client lifetime values for many brokers, it is no longer a new concept and with copy and signal trading firms having found themselves under scrutiny from MetaQuotes this year, and others have sought new distribution channels as a result of ubiquity.

In order to ascertain the business requirement for this particular offering, Forex Magnates spoke to Shai Heffetz, CEO of InterTrader Direct today, who explained that, "One of our reasons for adding this service is to increase clients' chances of remaining profitable, and to go some way toward countering losses made by traders who are not profitable."

We want to see customers losing less. Our objective with the losing customers is to cut their losses by 20% 30%."

Mr. Heffetz opined that this approach aims to "help customers do better Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, and increase their trading volume as a result, which is a by-product of customer success."

Integration With Proprietary Platform

Following on from that ethos, Mr. Heffetz further explained to Forex Magnates that his company's alliance with Trading Central will see the service rolled out in two stages. Firstly, it appears on the Intertrader.com operation, which offers a proprietary platform using Trading Central data.

The second phase will be completed in January 2014, whereby the entire signal from the platform itself will enable you to access all analysis directly from the platform as a fully integrated service.

In terms of functionality, Mr. Heffetz explained that whilst the trader receives the signals automatically, there is a degree of manual input in distributing the signals.

"No, there is nothing manual in the distribution. We do allow each client to customize for which instruments he wants to receive the signals for. The analysis stage is done manually by a human analyst rather than an automated algorithm.

Trading Central's system is not like AutoChartist, this is a hand made analysis. They have analysts in HK, France and US and they are able to provide manual analysis. All the major FX and commodities are covered manually.

Our proprietary platform only creates key instruments that we are aware of them being done manually. On top of that there are two automatic processes, one being the reporting of any candlestick pattern which arises in a certain time period, and secondly the reporting of other changes such as RSI 30, RSI 70, MACD and EMA Crossovers," he said.

With regulatory authorities looking closely at any activity which could be construed as financial advice, Mr. Heffetz responded by stating that, "Regulation will be covered by Trading Central's license. It is important to set this in place as this may well be law soon."

I believe that a regulated environment for signal traders is the way it should be, as clients should be provided with sound methods, and that the way forward is for all signal platforms to be regulated. Saying that, we are not advising, we are purely providing information relating to the market, and the client decides which way to go."