Low-cost platform to take on online broker giants
Investment platform TimeToTrade has unveiled plans to offer institutional investor-style trading technology to the UK’s private investors.
From this Autumn the platform will offer access to the tools and techniques that help professional traders protect assets and seize opportunities when markets are moving rapidly. The move – along with its low-charging model – will bring it head-to-head with some of the biggest investment platforms.
The FCA-authorised company is also launching a GBP500,000 Crowdcube offer to enable users and other retail investors chance to take a stake in the business.
TimeToTrade, which was established in 2014, is already enabling over 31,000 registered site users to receive alerts when any combination of price, trend-line, technical analysis, volumes or candle-stick chart conditions is met and is sending out half a million notifications a month.
Soon users will be able to set the alerts to automatically trigger trades, helping them implement strategies in volatile markets. Investors, who can currently trade and hold shares through the platform, will also be able to invest in funds, CFDs, FX and spread betting deals. The service will support ISAs and plans are in place to add a SIPP wrapper.
The platform’s founders – who have a strong record in launching and floating successful financial services businesses – believe the developments could transform the UK’s online trading industry.
Founder and chief operating officer Dary McGovern says: “There’s been little evolution of the brokerage business for some years – too many platforms and fund supermarkets are offering the same thing. We’re giving investors tools they have previously only dreamt of and the chance to reduce costs.
“If you want to execute a bespoke strategy you typically end up having to write your own software programme and build sophisticated spreadsheets to work out your position. If you’re investing outside a tax wrapper you also need an accountant to calculate your capital gains tax liabilities. We’ve solved all those problems, making it easier to test trading strategies, execute them and get a view on your portfolio position at any time, together with tax implications.”
The platform charges start from GBP5.50 a trade for shares and as an added incentive to investors supporting the Crowdcube fundraising they will earn a discount on trading charges for life – up to 20 per cent a trade for those investing GBP10,000 or more.
The platform, which has attracted users from the UK, Europe and Asia, has also been designed to help members of investment clubs trade and manage their reporting. It is estimated that there are over 100,000 members of investment clubs in the UK alone.
CEO Simon Denham says: “TimeToTrade offers a significant step forward for investors because it allows more automation of the investment process. That means when opportunities arise you can take advantage of them without having to wait until you can get online. It also helps take the emotion out of decisions, which is what most often gets in the way of investors succeeding.
“The private investment market is immense and pension freedoms in the UK mean that many more investors will be taking control of their own money in the future. We have a global product, a proven business model, an established user base and great growth potential.”
Denham adds: “We have had strong financial backing at each stage of the business’s development from wealthy individuals and institutions. We know that many of those on the platform are smart investors who can see its potential quite clearly and would welcome the opportunity to take a stake before it gets to an IPO stage.
“We’ve always wanted to do things differently and see this as a good opportunity to strengthen the ties between us and our users.”
Once the fundraising is complete, the firm will be valued at GBP8.5 million. TimeToTrade has a projected year-three revenue of GBP9.1 million with estimated earnings before interest, tax, depreciation and amortisation of GBP4.2 million.