Financial technology company Trading Cores told Finance Magnates on Friday that it has launched a new means of trading in contracts-for-difference.
Called bundles, the new product brings together a selection of different asset classes into a single CFD.
For instance, a bundle could be comprised of cryptocurrencies, commodities, and indices.
In a statement, a Trading Cores spokesperson told Finance Magnates that it believes bundles can both encourage more trading and bolster traders’ risk management procedures.
“Having worked with FX and CFD brokers for years, it was very clear that these products were way too complex and overwhelming for the vast majority of clients, who would often abandon their trading efforts,” said Liron Ivkoviz, COO of Trading Cores.
“With bundles, we have seen a massive shift and noticed that the learning curve for new traders has been reduced substantially.”
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More volume, lower costs
Bundles provided by Trading Cores are put together by financial analysts working at the firm.
And for brokers regulated in the European Union, selling the products may require some additional permissions from financial authorities. For example, in Cyprus, firms could be required to extend their ‘Advice’ permissions.
But, if that is the case, it is likely worth the hassle that comes with applying for new approvals from regulators.
After trialing their product, Trading Cores said that traders were more engaged, less likely to give up and easier to attract via marketing efforts.
“There is no shortage of retail investors who want to trade online, but for those who have never traded before or have limited knowledge, it can be a long and tedious learning curve,” said Ori Maizlik, VP Sales of Trading Cores.
“Bundles help these traders by providing a simplified product. It also allows brokers to maintain healthy trading volumes and reduce marketing costs.”