In the wake of signing up FX broker partners Pepperstone, IC Markets, Global Prime and AvaTrade in June upon their launch and ASIC regulated USGFX in August, Australian headquartered PsyQuation, a unique provider of quantitative and behavioural analytic software solutions for the broker and trader community has announced their latest broker signup and it is a major one.
From what we understand, PsyQuation has officially added global forex broker OANDA to its list of broker partners.
Back in May of this year, LeapRate spoke exclusively with PsyQuation co-founder Michael Berman, you can read the full interview by clicking here and check out a snippet of the interview below:
LeapRate: What problem are you addressing?
Michael: The problem is that retail FX traders perform very poorly, which has obvious consequences for the trader as well as for the broker’s bottom line as they are faced with a shrinking customer base and increasing costs of customer acquisition. In a zero sum game, after accounting for transaction costs it is clear that the odds are stacked against the trader. It is not to say that it is impossible to be profitable but rather it is extremely difficult.
One of the main reasons why retail FX traders perform so badly is due to their poor risk management and a weak understanding of the high leverage effect. Speaking from a behavioural perspective trading amplifies lots of human emotions and these often translate into poor financial decision making.
Our objective is simple on paper, we want to help traders become more profitable, however it is far more complex in practice. It is impossible to take someone with no edge in the forex markets and make them into a consistently profitable trader. Our statement of making traders more profitable is a very important distinction, we cannot make a trader profitable as that can only happen if the trader has an edge and we are providing an overlay to an existing strategy.. Rather we seek to make a trader more profitable by eliminating trader mistakes.