ETX Connect has been launched by ETX Capital which was originally founded in 1965 as Monecor, has traditionally offered financial spread betting and CFDs to retail and professional traders on an execution-only basis.
But over the last decade, it has become increasingly difficult for derivatives brokers to provide their clients with trading ideas due to the FCA’s clampdown on advisory brokers or even market analysis that could be considered implied advice.
What is ETX Connect and how will it work?
ETX Connect will use Pelican’s social trading platform to allow ETX clients trading on MT4 to either be trade leaders or followers. The concept of social trading being that traders can earn money by either charging a subscription to other traders to see their traders or allow traders to copy their trades automatically.
ETX Capital commented:
“having Pelican on board will enable us to offer a unique, fair and social trading solution which bridges the gap between new and expert traders like no other broker has done before. We’re excited to be partnered with Mike and the team at Pelican and look forward to growing together”.
A while ago, we spoke to Yoni Assai, the founder of eToro, the largest social trading broker about whether social trading on app like ETX Connect can become an asset class in itself.
It’s tough for traders to make a profit and social trading is a little like a bunch of unregulated amateurs playing hedge fund managers, but there are profitable traders to follow. But, you still have to find them. Finding a consistently profitable trader on ETX Connect may be just as hard as consistently picking winning stocks.
It’s been a rough ride for Forex brokers recently, as they struggle to differentiate their offering and entice new clients to trade through them rather than the two big brokers, IG and CMC Markets.
Mike Read, Pelican co-founder and CEO, commented on the partnership:
ETX Connect is testament to the abilities of the unique white label copy trading solution offered by Pelican. We are extremely pleased to have partnered with ETX Capital a leading broker in the FX sector and look forward to servicing their wider client base.”
ETX Connect is available from the Google Play and Apple App stores.