LIVE from Devexperts webinar for brokers on Fractional Trading
Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.
Following the successful webinar on introducing crypto to retail investors, Devexperts is returning to host a new one about fractional trading, at 16:00, London time.
The provider of financial software for brokerages wants to help brokers stay ahead in such a competitive industry. The webinar will explain why fractional trading begins to be a critical tool.
While awareness of financial markets has exploded among the masses, the reality is that most potential investors don’t have that much capital to risk.
Fractional trading addresses this issue and it also makes it much easier for investors to place their orders. This feature has grown in popularity to a point that it has become a deal-breaker for many retail users when choosing a broker.
This fact makes the webinar all the more vital for brokers, whether they are startups launching a new brokerage or are established firms looking to start offering US stocks to their traders, located either in the USA or in any other part of the world, including LATAM, Europe, and APAC.
The event will explain how fractional trading works and why brokers ought to launch it as part of their offerings.
The webinar will be hosted by Michael Sprachman, Devexperts’ VP of Brokerage Trading Platform, and will take place at 16:00, London time. Register here.
16:05 – Michael Sprachman started out by defining fractional trading as taking a smaller piece of a security and being able to trade it as a client. He also made the distinction between Fractional vs Notional Quantity and explained the concept of Fractional Inventory Management.
16: 10 – Then, the question is how to manage the OMS route fractional orders. Sprachman explained the Fractional Rounding Algorithm that supports both fractional and notional quantities and how the process requires brokers to reduce exposure. Another workflow supported by the Fractional OMS is pre-allocated block orders.
16: 15 – The webinar host then introduced DXtrade XT as a recommended solution for brokers to launch fractional trading. The “brokerage in a box” product is a white label solution that supports a wide range of trading instruments, a multi-asset platform with flexible configuration that supports both cash and margin accounts.
16: 20 – Traditionally, brokers have been responsible for the exchange reporting in general, but Devexperts’ market data provider, dxFeed, takes care of that hurdle as part of the offering.
16:25 – Sprachman went into depth on the platform’s real-time features and tools and how customizable they are for the benefit of both brokers and their clients.
15:30 – Michael Sprachman handed it over to Ben Clark, VP Business Development at Devexperts, who is taking questions from the audience.
Replying to a question about regulatory compliance, Ben Clarke stated that, to date, no regulator has approached Devexperts, but the fintech provider fully cooperates with authorities in order to stay compliant at all times.
As to risk management, the webinar hosts explained the exchange-traded platform allows brokers to set a number of risk checks whether it is on the order level, account level, or position level. The solution also provides automatic position closure, enabling brokers to monitor and configure the algorithm in terms of exposure and to close positions on the brokers’ behalf.
The webinar has ended, Michael Sprachman and Ben Clark thanked the participants for their time. The video will be available soon.