Starting with the brokers side, in order to maximize returns , brokers must find ways to increase the so called Customer LifeTime Value , which means that they need happy & successful traders in the longrun.
And that means mainly 4 things ,
- State of the art trading tools customized for each trader’s unique profile in order to maximize winning trades , manage risk better & have staying customers
- CRM & data analytics tools to understand their traders better & offer customized products to them
- tech tools to increase transparency & conform with regulations
- education & community building tools.
On the trader’s side , traders can use technology :
- For better risk management & risk/reward optimization adjustable to each trader’s unique profile. We all know that the main reason for the failure of traders is the total lack of or bad risk management.
- For trading signals generation based on machine learning algos , which in realtime can find the best optimum trades based on certain criteria & backtested data.
- To save time when looking at various metrics of the markets, like multiple timeframe backtesters for various assets & various combination of assets.
- Last but not least for products like options, to synthesize & pursue more complex strategies involving volatility selling & buying, portfolio & risk/reward optimization using options & building of delta neutral strategies.
Definitely , there are many more other ways of using technology to provide a much better product/service to traders. The above could be a good start for any broker looking to escape the commoditized business of just executing some orders.