The Group was created to establish an innovative simplified trading solution to be licensed to online brokers targeting retail customers. These solutions are designed to provide ease of use for the end user as well as providing a complete operating solution for online brokers.
The Group’s current product range comprises its simplified Binary Options platform and its simplified FOREX platform.
Currently, TechFinancials’ core product is a Binary Options trading platform accompanied by a suite of back-office modules and applications such as risk management and CRM. TechFinancials targets online marketers or online media businesses looking to diversify into online broking.
The end-user interface is designed to interact with the pricing engine and the back-office modules. The TechFinancials platform is able to process trades automatically and synchronises in real time with the relevant back-office modules such as the customer accounts database and the trade monitoring software. Online brokers and their customers are able to monitor open positions and trading activity continuously.
The Group’s proprietary pricing engine allows online brokers licensing the TechFinancials software to limit their financial risk as a result of the complex algorithms that calculate the strike price of the Binary Options and the nature of Binary Options themselves.
The Group targets online brokers and exchanges in a number of different jurisdictions, including:
- global regulated and unregulated retail financial brokers;
– regulated and unregulated online brokers targeting the Japanese market; and
– US regulated binary exchanges
In H2 2014, TechFinancials launched its second trading platform, simplified FOREX, in beta version, with the final product expected to go live in 2015. In addition, the Group expects to launch full versions of the following products during 2015:
- a pricing engine for fixed strike Binary Options for US regulated exchanges. This is a solution for market makers who wish to connect to a regulated exchange in the US which offers Binary Options to the retail market. The Directors anticipate that this will be added to the Group’s product portfolio during Q1 2015;
- a fixed strike Binary Options trading platform with supporting IT systems for retail brokers, which has been designed to address the Japanese regulated market. The Directors anticipate this will be added to the product portfolio before the end of Q3 2015; and
- a simplified CFD trading platform through which traders will be able to trade CFDs on stocks and indices in broadly the same way as they are currently able to trade FOREX. The Directors anticipate this will be added to the product portfolio in H1 2015.
The Group’s suite of products is designed to provide a complete turnkey solution which enables an online broker to both price an option and enjoy the benefits of an integrated back-office solution. In addition to the products described above, TechFinancials also offers to its licencees an integrated set of modules either developed in-house or sourced from selected third parties, including CRM, reporting and payment processing applications, as well as risk management software and other products. TechFinancials does not process payments or execute trades on behalf of its online broker customers and is solely a supplier of software.
The Group provides technical support for all of its own products. In addition, the Group can integrate other systems, including back-office and accounting systems, CRM systems, business intelligence and reporting systems as well as helping clients integrate these systems with recognised marketing and affiliate management systems.
The Group intends to expand its product offering further and has developed a multi-asset platform (also known as a multi-dealer platform) which will combine a range of trading instruments onto one trading platform, allowing retail customers to trade different instruments, such as Binary Options and FOREX, via a simple and unified user interface. This anticipated future development reflects a market where a substantial and increasing proportion of trading in financial instruments is undertaken via multi-asset platforms.
A multi-asset platform, as developed by TechFinancials, benefits online brokers by offering them a rane of products with which to approach the retail market and a pricing engine which obviates the need for dtailed technical knowledge of FOREX and Binary Options. As a result, multi-asset platforms, such as the one developed by TechFinancials, enable online brokers to benefit from the higher customer lead conversion rate that is typical of a Binary Options trader coupled with the higher lifetime value that is typical of a FOREX trader.