SPOTWARE cTrader News
Posted: Mon Jun 05, 2017 11:42 pm
Link Site cTrader platform ; [url=http://www.spotware.com/]SPOTWARE[/url]
Exclusive: Retail traders can now design, backtest and work together to develop algos historically available only to banks and hedge funds
Hedge funds and interbank dealers no longer have an advantage over retail traders with more capital to design algos and trading systems to beat the market
There is no doubt that today’s retail traders bear very little similarity to the retail traders that existed en masse even as recently as the end of the last decade.
Just under a decade ago, the MetaTrader 4 platform had already rocketed to ubiquity. At that time, however, its format was a closed system, not designed to connect retail traders to a live marketplace. Instead, it was integral to the dealing desk software, hence the counterparty was always the house.
Back then, FX trading was in its infancy on the retail market as a global proposition, bringing to fruition thousands of new brokerages in unregulated jurisdictions. It targeted a global audience of uninitiated novices, with startup costs of just $5,000 for a white label license and a monthly service fee.
The market connectivity, trade reporting, post-trade settlement, aggregated price feeds and decades of experience required to negotiate prime brokerage relationships with banks were anathema to the owners of the plethora of brokerages that appeared at the time; to all of the customers said brokerages onboarded, these prerequisites were completely foreign.
Source : Finance Feeds
Exclusive: Retail traders can now design, backtest and work together to develop algos historically available only to banks and hedge funds
Hedge funds and interbank dealers no longer have an advantage over retail traders with more capital to design algos and trading systems to beat the market
There is no doubt that today’s retail traders bear very little similarity to the retail traders that existed en masse even as recently as the end of the last decade.
Just under a decade ago, the MetaTrader 4 platform had already rocketed to ubiquity. At that time, however, its format was a closed system, not designed to connect retail traders to a live marketplace. Instead, it was integral to the dealing desk software, hence the counterparty was always the house.
Back then, FX trading was in its infancy on the retail market as a global proposition, bringing to fruition thousands of new brokerages in unregulated jurisdictions. It targeted a global audience of uninitiated novices, with startup costs of just $5,000 for a white label license and a monthly service fee.
The market connectivity, trade reporting, post-trade settlement, aggregated price feeds and decades of experience required to negotiate prime brokerage relationships with banks were anathema to the owners of the plethora of brokerages that appeared at the time; to all of the customers said brokerages onboarded, these prerequisites were completely foreign.
Source : Finance Feeds
