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Why is it beneficial for Brokers to launch their own Trading Platform?

Why is it beneficial for Brokers to launch their own Trading Platform?

Content:

1. Online Trading Platform Idea

2. Benefits of Trading Platforms for brokers

⦿ Amplifying the Scale

⦿ Combination with the Сommunity

⦿ Facilitated Clients’ Engagement

1. Online Trading Platform Idea


A trading platform is a powerful tool that helps to monitor charts, quotes, and diagrams, as well as to open, close, and control market positions. In most cases, there is a special professional who operates this platform. It is a financial intermediary that serves on behalf of the trader and provides services of buying and selling transactions. Here we dwelled more on the difference between brokers and traders.

As can be perceived from the complex system of features the platform includes, it is not a matter of a few weeks to build it. That is why the need for experienced brokers to launch their own trading platforms emerges. Accompanied by the extensive list of benefits, which we will discuss later, personal trading platforms became a must since technological development imposed a tendency to automate all processes. Trading as well. It cannot be competitive nowadays unless implemented an online platform.

However, to keep with the times it must meet the following standards:

– Be able to fix technical errors

– Present clear ways to connect to other platforms

– Provide stable and secure service

– Manage the high stocks of requests and workloads

According to the results of the survey conducted by Fortune Business Insights in 2020, 34% of global online platforms are operated by brokers. Still, the market of online trading platforms is constantly evolving, and in the next years, it is likely to align in the number with the banking and financial platforms.

Now we are going to outline the three major benefits for brokers in launching their trading platforms:

Amplifying the Scale

With the increasing number of retail investors around the world, trade service rivalry and quality expectations are increasing. Thus, brokers must meet the required standards to prove their experience, reliability, and proficiency. The online trading platform is a key factor in establishing a positive attitude as it presents a credible root of the broker’s work. In order to reach solid investors, brokers must correspond to the digital market and, with the assistance of an online platform tailored for their professional needs, provide more precise and quicker results, making their position more stable and competitive.

Moreover, brokers with a personal computerized platform can increase the volumes of the trading without charging extra fees, making it possible to work with more companies at the same time. 

In the markets for streaming products like forex, stocks, futures, and more, scale is becoming increasingly crucial. Because the world of investing has switched from paper to electronic devices, not all of the industry’s major participants are required to keep up with the quick pace of the industry’s giants.

That is why we at Fintatech advise against building everything from scratch, which would take a lot of money and effort, and buying ready-made platforms without the option to customize and create a one-of-a-kind product. Fintatech’s Trading Platform Designer is a viable alternative. It’s a multi-asset trading platform exchange platform that features a universal “trading platform skeleton” at its core, which is augmented with interconnected module-based software components based on the client’s needs. Our framework’s advantages enable us to provide our clients with a faster time to market deployment, and our main product eliminates costly development cycle delays, which any startup or institutional client does not want to disrupt their core strategy and focus.

Combination with the Сommunity

Online trading system provides the possibility to create a collaborative community of traders. According to Forbes, as the generation of investors evolves, new trends and developments are emerging. Presumably, the essence of this notion is connected with the burden of quarantine, isolation, and evolving generation of introverts. People enjoy being a part of a community; trading is not an exception.

The community created on the basis of the platform unites users to track the market together, make bets on puts and calls team wisely, and take part in a discussion on “slippery slope” questions.

Establishing such a space for traders managed to benefit the currently notable company called Tastytrade. They built the online brokerage platform Tastyworks which specializes in active trading, trading exchange, options, futures, and cryptocurrency.  

That is, Tastytrade has built its own community of active and experienced traders as one of the most prominent online financial networks. It draws and teaches investors and traders from 150 countries, fostering the greatest trading environment possible. In this case, the trading platform is an additional key to success as well as a tool for comfortable learning and trading. Co-CEO and President of Tastytrade Kristi Ross stated the target of their platform creation is “to debunk the myths around active vs. passive investing,” and with the series of online and implicit learning, they give investors the basis to enlarge their funds. 

According to Financefeeds, Tastytrade contributed £ 28.4 million to IG GROUP’s revenue for December-February 2021-2022 and showed a positive increase. A number of factors determine the success of Tastytrade, but one of the most important is combining a trading platform with a dynamic investor community.

As a result, if you’re seeking a reliable trading software provider, we at Fintateсh are always delighted to assist you in reaching new heights.

Facilitated Clients’ Engagement

Building a completely customizable platform is a rather complicated task as customization is not limited to changing the theme color or profile picture; it requires some ground changes to be possible to make by any user. Platform, including setting altered by their customers, enlarges the income and helps traders to operate more effectively. Thus, with the intention to bring broker business to the next stage, it is undoubtedly essential to launch the online platform.

The decision to create a personal trading platform ends up prosperous for brokers as it accelerates clients’ onboarding process and urges them to retain. The major value is presented by the integration of this platform with the broker’s cabinet enabling fast interaction and coordination activity. Making the platform equipped with a “create live account” button boosts the client’s affection and interest in launching the trades right away.

Fintatech company presents ready-made solutions which are open to being customized and adapted for the demands of our clients. Our clients have more opportunities to reach the outcome in a shorter perspective as they do not waste time on building the platforms from scratch but purchase the base, which can be easily modified and prepared with high-quality and complete responsibility, saving time, money, and effort. Fintatech, with its prepared solutions, leaves space for our partners to develop their projects while we will be in charge of making the platform for trading.

Contact our manager to get more information on launching your personal online platform. Be with Fintatech. Embrace opportunity! 

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