The latest firm to jump on the social trading network bandwagon is US-based company FundSeeder Technologies, backed by industry veterans including the author of the Market Wizard series, Jack Schwager.
Fundseeder's product ranks traders, a core aim of social trading networks. Past performance is recorded and analyzed, and that data is compared against other trader's performance, and on many quantitative levels with regard to risk/reward rankings.
How companies go about the often complex process of sifting through traders to find those who actually have inherently good habits and talents with results that correspond, versus luck or random trading results, is the crux of the challenge in running a successful social trading network.
According to Fundseeder's website, in some cases clients can import their trading history, such as is allowed with MT4 accounts, thus allowing a backfill-bias, but the firm makes it clear that it doesn't allow hypothetical results (i.e. demo accounts or backtesting), and only uses real live accounts that can be tracked by its platform.
Qualified Investors Sought
An announcement was made through the firm's sister company FundSeeder Investments LLC earlier - which revealed a new product line today - aimed to help match investors with talented traders, thus complementing its social network of traders, offered via its affiliated business FundSeeder Technologies.
The Connecticut-based firm, under the name FundSeeder Investments LLC, is a Commodity Trading Advisor (CTA) that is registered with the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC).
After just receiving NFA approval last month, and more recently as a Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term firm as well, according to information on the NFA website, FundSeeder launched the new offering aimed at qualified investors and also filed a 4.7 exemption for its regulated business.
Two of the questions asked on the new site fundseederinvest.com, aimed at regulated traders:
- Are you an accredited investor in accordance with Rule 501(a) of Regulation D of the Securities Act of 1933?
- Are you a qualified purchaser under the exemption provided by Section 3(c)(7) under the Investment Company Act of 1940?
It would make sense that anyone that didn't meet these definitions could go to the sister company as a retail trader, so it appears, whereas traders that qualify to be considered regulated investors could get some of the benefits afforded by the new launch, such as assistance in curating traders from within the social network- not always an easy task on any social Trading Platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term.
Retail Offering Via Sister Company
On the website dedicated to the social product, the company lists that it works with four brokers that clients can link their trading accounts to, including Interactive Brokers, Tradestation, nearly any MT4 Account, and futures’ FCMs that use GMI back-office processing.
The difference between both entities seems that one is for retail and to aggregate and rank traders, whereas the other entity aims at raising funds from qualified investors, yet could be complementary if the traders from one side can be matched to the investors, such as using a letter-of-direction, as an example.
While social trading and robo-advisory is becoming more popular on the securities side, it has been around in futures and forex for a decade or more, but remains relevant. And following Currensee's acquisition by Oanda, which is also a US-based CTA, and more recently eToro's deal with a large bank in Russia, the FinTech convergences with robo-advisory and social trading networks may help to give both a boost.
The latest firm to jump on the social trading network bandwagon is US-based company FundSeeder Technologies, backed by industry veterans including the author of the Market Wizard series, Jack Schwager.
Fundseeder's product ranks traders, a core aim of social trading networks. Past performance is recorded and analyzed, and that data is compared against other trader's performance, and on many quantitative levels with regard to risk/reward rankings.
How companies go about the often complex process of sifting through traders to find those who actually have inherently good habits and talents with results that correspond, versus luck or random trading results, is the crux of the challenge in running a successful social trading network.
According to Fundseeder's website, in some cases clients can import their trading history, such as is allowed with MT4 accounts, thus allowing a backfill-bias, but the firm makes it clear that it doesn't allow hypothetical results (i.e. demo accounts or backtesting), and only uses real live accounts that can be tracked by its platform.
Qualified Investors Sought
An announcement was made through the firm's sister company FundSeeder Investments LLC earlier - which revealed a new product line today - aimed to help match investors with talented traders, thus complementing its social network of traders, offered via its affiliated business FundSeeder Technologies.
The Connecticut-based firm, under the name FundSeeder Investments LLC, is a Commodity Trading Advisor (CTA) that is registered with the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC).
After just receiving NFA approval last month, and more recently as a Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term firm as well, according to information on the NFA website, FundSeeder launched the new offering aimed at qualified investors and also filed a 4.7 exemption for its regulated business.
Two of the questions asked on the new site fundseederinvest.com, aimed at regulated traders:
- Are you an accredited investor in accordance with Rule 501(a) of Regulation D of the Securities Act of 1933?
- Are you a qualified purchaser under the exemption provided by Section 3(c)(7) under the Investment Company Act of 1940?
It would make sense that anyone that didn't meet these definitions could go to the sister company as a retail trader, so it appears, whereas traders that qualify to be considered regulated investors could get some of the benefits afforded by the new launch, such as assistance in curating traders from within the social network- not always an easy task on any social Trading Platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term.
Retail Offering Via Sister Company
On the website dedicated to the social product, the company lists that it works with four brokers that clients can link their trading accounts to, including Interactive Brokers, Tradestation, nearly any MT4 Account, and futures’ FCMs that use GMI back-office processing.
The difference between both entities seems that one is for retail and to aggregate and rank traders, whereas the other entity aims at raising funds from qualified investors, yet could be complementary if the traders from one side can be matched to the investors, such as using a letter-of-direction, as an example.
While social trading and robo-advisory is becoming more popular on the securities side, it has been around in futures and forex for a decade or more, but remains relevant. And following Currensee's acquisition by Oanda, which is also a US-based CTA, and more recently eToro's deal with a large bank in Russia, the FinTech convergences with robo-advisory and social trading networks may help to give both a boost.
