Trading analytics company CorrSight has made significant inroads over the past year into the online FX market. By providing Forex brokers with its patented trader analysis software it has gone some way to tackling the problem brokerages are having of traders dabbling in the FX market but not returning to it after their initial risk capital has been exhausted.
Traders Compass the program the company has developed provides traders with a real time analysis of their open trades, as well as revealing market trades and important forthcoming economic events. Now the company has developed a version of its powerful application for binary options firms. The program integrates with binary options platforms and provides a wealth of data to binary traders, which they can use to better assess their open positions as well as the relative profitability of their trading sessions. This could be a great leap forward for binary options brokers who are now experiencing the same issues with low return rates, especially amongst beginner traders.
The issue in binary options is that the lifetime value of your average beginner is quite small. Most traders tend to make an initial deposit of between 200-500 dollars. Shortly thereafter they are contacted by a salesperson, and of this group, the ones who are convinced to deposit a further sum of money usually do not return once this money has been lost. This sets the lifetime value of most binary traders at somewhere between 200 and 1000 dollars. This figure is undoubtedly lower than that of Forex traders and it is increasingly important to binary brokers operating in an ever-more competitive market to raise it.
The goal of most brokerages is obviously to keep their clients on their platform for as long as it takes to profit from their trading activities, in this way the cost of acquiring that customer can be mitigated and the broker can post a profit.
Anything that can extend the average lifespan of a binary trader is absolutely imperative to binary brokers. This is why CorrSight has sought to port over its analysis software to work with binary options and to also be able to provide its currency analytics for commodities, stocks and indices as well. Compass has been designed to get traders depositing, lock-in in profitable trades, and progressively placing more valuable trades.
CorrSight partnered up with iOption for the development of its binary options trading analysis software. The two companies worked closely for about a year, defining strict trading rules, strategies and risk management profiles tailored to the trading of binary options.
Compass has been designed in order to help and guide traders through their binary options careers, gradually improving their level of proficiency by helping the trader to look outwards and gain insights as to what is happening on the marts, whilst also looking inwards at past trading activity for trends and ways in which it can be optimised.
This is a similar tool to the ones developed for the online gambling industry, specifically for poker players to keep track of the hands they have played and statistically discern where they are in their development.
Compass will analyse past performance, as well as providing binary traders with real time trading alerts to do with sub-optimal trading choices and weak risk management profiles. Couple this with the up to the minute market information the software will provide and you have a complete trading solution for the relatively young field of binary options.
CorrSight’s software is already making waves in the retail forex market. Since its release last February it has become a ubiquitous tool among online forex traders. This in no small part due to the company’s partnership with forex platform developer Leverate, which has seen Compass’s penetration into the forex market grow beyond all expectations. If iOption can provide the same kind of uptake of its services for binary option then CorrSight will have pretty-much sewn up the contemporary trading market.
In a recent statement CorrSight CEO Hudi Zack said: “After witnessing the recent exponential growth of the binary options market, we decided to expand our product and develop a similar service for traders in this market segment..Traders-Compass improves the traders skill set and helps him manage his transactions more intelligently. At the same time this service helps the broker improve conversion rate and increase trading activity.’
With the upsurge in electronic signals and digital market analysis, especially in the field of binary options, a lot of questions have been raised regarding the legality of such services and where they fit into the regulatory framework. At present it is unknown whether the relevant regulatory bodies in both Forex and binary options will be moving to regulate the provision of such services.
Hudi Zack however was keen to emphasise that his company is not providing traders with investment advice, but is rather an investment management tool which monitors trading activity and provides sound strategic guidance to traders. He believes it falls perfectly in line with the goal of regulators to increase transparency and protect traders.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.