In part 1, we looked at four of the most innovative new products and platforms in the online trading space. Today, we shall be looking at four more, including a revolutionary new gamified trading platform, a tool for filtering out the noise to find the most relevant social sentiment data on Twitter, an example of the trend for spinning off broker news and analysis services into separate media assets, and a next-generation options trading platform.
This new-breed social sentiment analysis tool for traders monitors the entire output of Twitter to identify quality content that could have the potential to have an impact on the capital markets.
In order to achieve these ends, FSWire uses algorithms that employ artificial intelligence and self-learning techniques alongside more proprietary strategies. These enable the service to analyse the content in question to gain an understanding of what it is about in terms of the financial instrument (for example, stocks, commodities, or currencies), the country, event, or the theme that it relates to.
Basically, it’s a tool to help traders, researchers, and analysts filter out the the vast acres of noise produced by social media to get to the most relevant information, breaking news, trends and rumours that are originated and/or propagated on Twitter. This information can be filtered further to tune it into the specific interests of the trader in question.
While much of the innovation in the forex market in recent times has centred around social and algorithmic trading, GWAZY takes an altogether different approach that draws upon the binary options trading format.
It’s more easy to define GWAZY with regards to what it isn’t than what it is, and its main selling point is that it robs forex trading of complications such as spreads, dual pricing, margin/leverage, slippage – or even (so it claims) the need to know much about trading in order to succeed.
It’s similar in some ways to gamified approaches to trading such as the pre-OpenBook eToro platform, using graphical representations of the market in order to simplify its machinations, and market-making to eliminate the pricing discrepancies that can occur with direct market access-based platforms.
It differs from these by providing pre-determined risk/return levels to prevent users from running into the type of issues that are associated with margin-based trading – you just need to select an instrument to trade and the amount you want to invest, click trade, and then watch how your trade gets on.
The growth of forex trading portals in recent times, highlighted by Forex Factory’s entry into Alexa’s top 1,000 list of websites, and it is clear that the demand for forex-related news and analysis has never been higher. This has led many brokers to spin their news and analysis functions off from their own websites into separate entities, as Saxo did with TradingFloor and FXCM did with DailyFX. Recently, OANDA followed suit by relaunching its MarketPulseFX trading blog as MarketPulse.com. The new site allows more room for detailed macroeconomic and technical analysis sections, as well as the latest forex news to impact the markets.
Building a trading platform from scratch is a costly, difficult, and highly involved process that can take a long time, and that’s why many brokers opt to use off-the-shelf white label platforms such as those provided by ORE and simply apply their branding to it.
ORE’s FX and precious metals options trading platform is a next-generation offering that highlights ease of use, social functionality, and flexibility. Although the platform is simple and intuitive, it also includes a help function, which can be toggled on or off with just one click.
Other key features that set it apart from competing offerings include an options strategy marketplace where traders can post and share ideas, or use and adapt strategies that have been developed by other traders, real-time quotes with one-click execution, and customisable OTC options that allow traders to choose strike, expiry, and deal size without restriction.