Charalambos Psimolophitis

Some Thoughts on the Eve of FxPro’s SuperTrader Launch.

A Brief History

Our industry owes everything to the online revolution. Without it retail Forex would be exactly where it was in the early 80s: nowhere. But for us at FxPro the Internet is much more than just the network of cables that allows us to do business, for us it’s an attitude and an ethos that informs everything we do.

If the influence of information technology were to be boiled down to one great trend, it would have to be a levelling of the playing field. Nowhere is this more visible than in online Forex. In the early days of our industry the technology was pretty exclusive, the bandwidth came at a premium, and the cost of entry was prohibitively expensive for most. Not only did you need significant capital behind you to become an online trader, but market expertise was also a must.

Cut to 2013, and the technology in your mobile phone is thousands of times more powerful than a custom-built trading station from the early 90’s. Bandwidth is getting cheaper by the day, spreads are lower than ever, liquidity is higher than ever, minimum deposits run at under a thousand US dollars, and you can trade currencies online without knowing the difference between a doji and a dodo.

What the Internet has taught us as a company is that people will always get what they want, and if you don’t provide it for them, they will get it from somewhere else. Online communities somehow manage to be collectively more intelligent than the sum total of their members, while profit-driven companies often exhibit signs of the reverse.

This has been our greatest lesson, and a driving force behind the changes that we have been making over the past few years. Traders wanted a direct connection to the markets so we gave them an ECN platform, they wanted to trade algorithmically so we provided them with FxPro Library, they wanted the freedom to build their own strategies so we developed FxPro Quant, they expressed concerns about conflicts of interest so we became an Agency Model broker. Even when these changes were costly and didn’t translate directly to increased profits, we made them because we perceived shifting sentiment and recognised that the traders themselves are the ones driving this industry, without them you’re quickly left by the side of the road.

Enter SuperTrader

So it’s with great pleasure that we unveil FxPro SuperTrader, our latest and, we believe, greatest effort at levelling the field once and for all. FxPro SuperTrader is an investment platform that brings two of the online Forex community’s most vocal members together, encouraging a synergistic relationship between them in which both can profit. Leaders bring their strategies, and investors bring their capital. In this way an investment style much more familiar to fund managers becomes available to retail traders for the first time ever. With FxPro SuperTrader investors need not concern themselves with the ins and outs of every position; instead they can take a broader view and focus on identifying potentially profitable investments and building a successful portfolio. Pips and ticks need not be fussed over; the business of trading is left to those with the expertise.

FxPro SuperTrader provides investors with access to a list of trading strategies that have been thoroughly vetted by our Business Development team before being approved. They can choose how much capital to allocate to each strategy, as well as the maximum loss per strategy they are prepared to accept, and can also set trailing equity percentage stops to protect their profits.

Leaders, on the other hand, if approved, earn commissions based on the volume traded by their investors, and performance fees based on the profits made by those investors.

Investors can benefit from the collective expertise of every leader who gains access to the platform, and leaders can take advantage of one of the deepest client bases and most advanced trading infrastructures in the industry.

A Highly Competitive Ecosystem

The most compelling feature of FxPro SuperTrader is the way it addresses issues of credibility. Not only is it hard to get your strategy approved for listing on FxPro SuperTrader, but once on the platform it is very difficult for it to actually remain there. Leaders are put through a stringent review process that includes questionnaires, interviews and testing of their strategies under live trading conditions, which must be conducted with their own capital. Even after they are approved, each strategy is monitored for consistent performance and compliance with our own risk management guidelines.

We have created an extremely competitive ecosystem where only the fittest strategies will survive. This is one of the things that has been missing from other platforms and signal providers; a performance benchmark to maintain quality.

FxPro SuperTrader provides investors with real data from live trading with real capital, and leaders with a challenging environment that rewards excellence and continued innovation. We believe it will be a great leveller in the industry, and anticipate a surge in volume as it picks up pace and begins to act as a filter for the best strategies on the Internet. This is why if you are a strategy developer we invite you to put your money where your mouth is and see whether you have what it takes to be an FxPro SuperTrader leader.

Where our Agency Model Fits In

The Agency Model has become the backbone of FxPro’s operations, and SuperTrader fits in seamlessly with it. Our Agency Model allows us to bring an unprecedented level of transparency to mirror trading. The positions of our traders are put straight through to the market, in other words when you follow a leader on our platform there is no one intervening between you and the markets, no one trading against you, and most importantly no one profiting from your losses. FxPro SuperTrader is the closest an investment platform has ever come to ensuring that all involved can benefit, without the need for a loser.

Investors benefit from the expertise of leaders, leaders benefit from the capital of investors, both benefit from the secure environment we have created, and FxPro benefits only from the volume traded.

It’s pretty simple really. We hope the community of new and old online traders that SuperTrader now belongs to will enjoy using it. Ultimately they are the guarantors of its success.