Market for new and ‘different’ forex trading platforms is getting crowded.
Cyprus based MT4 forex broker Windsor Brokers just announced that they are starting to offer to their clients a rather different methodology of trading, on the newly-introduced Gwazy platform.
Judging from Gwazy’s cartoonish logo at left, the platform is targeted as a ‘fun’ trading platform and is geared toward beginner and novice retail forex traders.
Based on the Arabic language (only) demo video on Gwazy’s home page, and the fact that they’re working with Windsor Brokers which has a strong Middle East following, we believe that the platform is targeted mainly (or at least initially) at the Arab retail forex sector.
The platform is quite simple – all the trader has to do is select the amount of risk capital he/she is willing to take and select the direction of the market. The platform has a preset risk-reward ratio that will automatically place a stop loss and a take profit order where the trade will be closed out.
As we have observed first hand by exploring the Gwazy demo platform online, trading can be simple and fun. The pairs offered so far are a rather limited selection, with major FX pairs, gold, Dow Jones futures and crude oil being the instruments of choice.
The client is choosing the return target on his investment, we guess that the team developing Gwazy has some further options in mind, or the demo functionality might be somewhat limited, but for now the Classic mode of operation offers predetermined returns on the risked amount of 25, 50, 100 and 200%.
It remains to be seen whether there will be a widespread adoption of this mode of trading – while easy for beginners, the platform may not prove to be very attractive to more experienced clients. It is a competitive environment and every new way of trading has to be tested and proven to work well. The obvious competition for this type of trading would be binary options brokerages.
As the forex sector has emerged from a 2011-12 volume slump to set record trading volumes in 2013, we expect to see more forex platforms and add-ons to platforms emerge, such as Tradable’s app store approach. But in the meantime, the majority of traders, we believe, will want to trade with brokers offering MT4 or advanced ‘standard’ platforms from leading suppliers such as Leverate, X Financial Solutions and Ariel Technologies.
To see the Windsor Brokers press release on launching Gwazy click here.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.