Tradovate Futures Trading Blog

4 Benefits Of A Conflict Free Trading Experience

Written by Kira Brecht | February 17, 2015 at 8:00 AM

 

Have you ever felt like your futures broker is trying to get you to trade more?

 

You are probably right. The current business model in the futures brokerage space is built around encouraging you to click, buy and sell more frequently. More trades equals more commissions, which generates more profits for the brokers and revenues for the firm.

 

But, are more trades in your best interest? Sometimes the best trade is no trade at all, or a longer-term trade riding a trend.

 

Imagine a world in which a broker's revenues aren't directly tied to the number of trades a customer puts on each day, each week, and each month. Finding solutions to this futures industry wide problem is a key driving force here at Tradovate. We think we are onto something special that will revolutionize the futures trading industry and put a customer's best interests first.

 

What would it look like if conflicts of interest were removed from the futures trading equation?

 

Privilege to trade as much or as little as you want — no pressure to trade more. An environment where you are free to focus on your analysis, your strategies without pressure from phone calls, e-mail trade alerts, or daily video trading ideas.

 

Brokers are stuffing more widgets onto a platform to encourage people to trade more. More free education is offered to you—webinars, videos, newsletters. But, they are all designed to tempt you to pull the trigger. Sometimes the best interest of a trader is to trade less frequently.

 

If you are an extremely active trader we have the tools for you too. One of Tradovate's key goals is to create a cost-effective trading experience—whether you trade a lot or a little. Active traders will find a unique and cost effective value proposition when we unveil our launch. Tradovate's new approach will significantly reduce the transactional component of trading costs.

 

Imagine a place where you can take your time, study your charts, plan your trades and trade your plan.

 

Freedom to focus on proper use of leverage. The power of leverage is often called the double edged sword. There is an upside when utilized properly, but there can also be a downside.

 

For example, just because your mortgage broker approves you for a $500,000 mortgage does that mean you really should lever up and max out your credit opportunities? The temptation is for people to max out what is available to them. It's human nature. When a customer trades more or overleverages that is often when people get into trouble.

 

Imagine a business model that doesn't pressure you to max out leverage.

 

Opportunity to practice proper risk management. Successful traders practice the idea of knowing where you will get in before you get out, this can prevent any one trade from doing significant damage to your account.

 

Controlling losses may be one of the most essential factors in trading success. Traders often lose on a percentage of their trades. But, proper risk management is what allows some traders to still achieve profits.

 

Imagine a business model built on conflict-free trading that allows you to focus on proper risk management —using stops, limiting the risk on individual trades.

 

Flexibility to pursue longer-term trend trades. Some of the most successful traders are trend followers. Which means they ride market trends for long periods of time. Not a lot of in and out of trades. Longer-term positions to capture a trending market.

 

Cut your losses short, let your winners run.

 

Imagine a company that focuses on the financial well being of its customers? What if there was a company whose model is built around seeing its customers succeed? We've arrived.

 

Trade less, use proper risk management. No high pressure tactics. When we launch, you'll see how Tradovate has tackled this issue head on to remove conflicts of interest. Sign up to stay tuned.