IG, the UK’s leading CFD trading platform and spread betting broker has announced the launch of a tool aimed at improving trader performance. The service which is currently in a Beta phase is designed to educate traders about their own performance, highlighting things they are doing well and those areas of their strategy which need work.
The new software will also highlight and track trading costs and calculate true trading PnL’s in light of those costs.
The post-trade analytics tool, that is being offered to existing clients of IG, can be found and accessed via the live accounts tab in MY IG and then selecting the trade analytics functions on the left-hand side of the screen.
Index and Forex brokers are regularly adding new services in order to retain their client bases.
Also, Capital.com introduced a similar feature when it launched. Interesting too that Capital.com is run in the UK by ex-IG Ivan Gowan. Who was chief digital experience officer at IG after rising through the ranks since joining as a developer in 2002.
One of the biggest costs that a broker has is the cost of customer acquisition which can run to more than £1,500 per head
Given that outlay brokers do not want to see hard-won clients jumping ship unnecessarily, the more resources they can provide to their customers and particularly services that contain an obvious and useful value add/benefit for traders, then the more likely the clients are to remain sticky to the brand.
Research has shown that traders will often have two brokerage accounts but that they place as much 75% of their business through their lead broker
IG Group and its rivals are, therefore, understandably keen to be the clients first choice. It is also likely that in providing tools for post-trade analytics, IG can go some way to demonstrating to regulators that are trying to educate the client base and improve on, the win-loss ratios for retail traders, trading with margin products.
IG Group is the not first broker to introduce tools aimed at improving trader performance
Last year forex broker Oanda, owned by venture capitalists CVC announced a tie-up with Chasing Returns a Dublin based business, led by former JP Morgan risk manager Ann hunt, which combines behavioural science and specialist software to visualise, track and manage clients trading performance, Rewarding and encouraging good behaviour and traits that can enhance their profitability and discouraging bad behaviour that can adversely affect it .
The psychology and mindset of a trader are one of the main contributing factors to their continued success
Retail traders and those new to trading are not always quick to grasp this fact and as a result, they can fall victim to traits (bad habits) such as loss version and biases such as anchoring, confirmation and outcome bias.
Analyzing and reviewing your trading performance is something that all traders should look to do on a regular basis and if brokers are keen to provide specialist data tools to aid that activity then so much the better as far as we are concerned.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.