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Screenshot of a breaking news alert e-mail from Q2 2017
The evolution of social and copy trading along with the use of signals has been rapid and highly technology-led over recent times, moving far away from its external platform based origins.
Avantgarde brokerage Darwinex is a prime example of this, with its product being a fully integrated brokerage which allows users to market their own trading and be remunerated by success fees.
The company’s latest development, which went live today, is the introduction of a series of widgets which are downloadable from the Darwinex website. This follows the company’s drive toward encouraging strategists to share their formulae via the Darwinex platform, with the company having begun the alpha testing phase of its DARWIN investor platform in the summer.
This morning, Darwinex sent a communication to its traders explaining that the new service intends to empower investable independent traders with a viable business model.
Darwinex’s methodology is aimed at allowing traders to credibly present their skill publicly, with the backing of Darwinex as the independent 3rd party that validates the prowess of each trader’s strategy.
Darwinex has stated that it has not implemented any authentication to ensure simplicity, and that data is public on the company’s LeaderBoard at all times.
In order to gain further perspective on the introduction of this service, LeapRate spoke to Juan Colon, founder and CEO of Darwinex, who explained “Our rationale is that 30%+ of our users are referred by other users – the widgets offer them an additional tool to partner with us in spreading evolution. Coupled with our substantially higher than average user lifetime value (our Assets under Management almost grow organically, our), this has the potential to fuel long term profitable growth for us, and trader aligned revenues for our customers, via our scouting program.”
“In doing this we compete with the traditional IB industry. Our mission is to offer a proposition compelling enough for users to recommend, which is the only effective way to target sophisticated independent traders, who also happen to be the core ingredient to our P2P investor proposition. You’ll shortly hear more from our side in this area.”
“The other goal is of course to establish DarwinIA, our diagnostic toolkit as the standard to rate, and the process to become, a good trader. Users publishing their widgets commit to their roadmap towards investable trading, using as a 3rd party independent appraisal service – thus engaging more with our eco-system” concluded Mr. Colon.
In order to utilize the service, any Darwinex user may publish the track-record for any linked or traded with DarwinEX. Additionally, any lead first visiting Darwinex via the widget is credited to the scouting account of the publisher, provided the publisher coincides with the strategy holder.
This effectively represents an opensource medium by which anyone CAN publish someone else’s track record, however Darwinex states that unless an exception is made by the company, the trader will NOT be credited for leads.
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