Leverate Opens up Social Trading with Sirix Community

Leverate, a leading technology provider to the FX brokerage sector has announced the launch of Sirix Community, a multi-broker social trading environment that incorporates different users of Leverate to form one large social trading community. The move positions Leverate as one of the largest social trading portals in the margin FX business.

Social trading is a recent phenomenon that has opened up the FX and CFD markets to clients who are either new to the markets or require a helping hand. Through the social trading network users can monitor, copy and analyze the trading patterns of profitable traders. Through this latest offering, users of Sirix Community will benefit from a large number of traders offering users the ability to monitor and copy their trading strategy.

Itay Damti, VP at Leverate spoke about the product extension in a comment to the media, saying, “The introduction of Sirix Community is a huge asset for forex brokers who offer social trading. The strength and continued success of any social network is measured by its size and level of continued activity. By uniting many brokers’ networks into one unified community, each broker will have a higher chance of success with the social network.”

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Client Data Protection

Under the new regime the security of client data is questioned, however, Leverate has created the network in such a way that all the functionality that users need in order to copy or follow traders is present, except the finer details e.g. the broker, the client trades which are not available. Mr Damti added, “We designed Sirix in ways that benefit both brokers and traders, while safeguarding privacy and empowering brokers to be flexible with the management of their ‘private’ client base.”

Leverate’s new offering is ideal for firms that are looking to start-up as a broker in the FX social trading space, during the initial phase of business most brokers have a limited client base, and a social network loses its appeal without a mass user base thus Sirix Community serves well.

BestStock.co: Grading & Performance

Earlier this year we wrote about TradeSlide, and its system of rating traders and providing analytics and tips for them to become better traders.  Using a similar, but different approach is BestStock.  Unlike Tradeslide, where users connect their accounts to the product, BestStock grades trade ideas.  With BestStock, users share their trade ideas, providing buy/sell recommendations, rationale behind the trade, timeframe, and price targets.  Trades are then analyzed to calculate their performance.   In a way, BestStocks can be compared to a combination of StockTwits and SeekingAlpha, that is integrating with a trade grading feature.

Adjusted Performance

Nico Black

Nico Black

According to the company, the product aims to analyze more than just the ultimate percentage performance of the trade idea.  The grading is done via what BestStock calls their “alpha capture system”.   According to BestStock  “The term alpha capture refers to the aim of such systems to help investors find market-beating returns on investments. For example, a trade idea might be live for 100 days and be profitable. However, traditionally if that idea lost money for 99 days and on day 100 made up for those losses it would be considered a success. “ 

The company though, believes that such an approach is flawed.  Explaining to Forex Magnates the problems with focused strictly on performance, Nico Black, BestStock Founder and CEO stated to Forex Magnates that “we expect analysis to reflect not incidental fluctuations in stock price (lose 99 days, profit day 100), but a core understanding of value investing. The money you wasted in non-providing returns for 98 days, should have been put to better use somewhere else. An analyst should have posted a buy/sell recommendation on day 99 with expecting profit moving forward from 100 onwards. This is how our rating rewards analysts, for fundamental, not technical analyses.”

As a result, BestStock utilizes a grading system that looks for daily open and close rates, growth/decline trajectory and investment time frame. Based on those parameters they produce a grade, range included, that allows the investor to focus on the top performing ideas and analysts in turn.

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Third Party Ratings & Newsletter Marketplace

Leveraging its rating system, one of BestStock’s goals is to become a destination for investors to find qualified analysts and traders.  Part of this plan includes the rating of analyst trade ideas from third-party investment websites.  In addition,  Best Stock is creating a virtual ‘Newsletter Marketplace’.  Looking to replace to existing fragmented sector of investment newsletter services, BestStock will soon be allowing users who receive high grades to ‘lock down’ their ideas and sell subscriptions to their analysis.  Analysts are also able to create profiles to promote their backgrounds and services to prospective subscribers.

In this regard, BestStock considers it part of a small, but growing group of startups such as WealthFront, MotifInvesting, and YCharts that are bringing innovation to the retail investing space.