Looking for a home base to launch your signal subscription service?
Mt.Cook specializes in Signal Subscription projects. We can help you get up and running within 48 hours!
Why Host Your Signal Business Here?
Trade Leaders and Signal Providers are often indifferent to their subscribers’ choice of broker, but you and your clients may be missing out on substantial benefits. Here are some reasons why...
Find answers to the top Signal Service questions here.
1. Do I need a license to offer a trade signal service?
Generally speaking – no. Please note that this will vary from jurisdiction to jurisdiction. However if clients/subscribers HAVE control over their account in terms of their ability to opt in and out, control risk, and protect their capital this is generally viewed as a “non-discretionary” service to them. This is the case with our Hybrid PAM technology, and also most trade copy services. Having a good signal agreement (which we provide to traders) helps to solidify this position.
*NOTE: For current laws and legislation in your home jurisdiction, it is of course always best to seek local and independent legal advice on this.
2. Can I charge any fees I want?
On our Hybrid PAM software, you can charge and automatically deduct any of the following; subscription fees, performance fees, management fees, and transactional fees. These fees are auto-debited from subscriber accounts.
On trade copy software, you are limited to what options are provided by the software vendor. Typically this is limited to subscription fees that clients pay to the trade copy vendor via PayPal or other providers.
3. Which software is best for trade signal services?
This is personal preference. You can use “trade copy” services, or our hybrid PAM technology, or both.
Trade copy services allow clients to receive your trades at any brokerage, and mix and match their own trading or signals on their account in addition to your trades. The downside is that their trades are subject to slippage and latency, which depending on the sensitivity of your trading, can have a minor to significant impact on performance. Clients can also onsell your strategy as their own signal, and theft of intellectual property in this capacity is a common problem among copy trade services.
Using the hybrid PAM technology means that all orders execute as one single block order, with zero latency or slippage, and your clients still have all of the account management controls on their account, much like copy services. This also offers intellectual property protection as traders cannot re-sell your trades as their own. However, it also means that your subscribers must have a web-based ECN account at Mt.Cook, and they cannot mix their own trades in with your signal.
This choice is ultimately a personal preference and we offer BOTH options.
4. Who typically runs a trade signal service.
Typically this is traders with a good track record or trading strategy, and with an active client base or marketing plan.
Want to learn more?
Contact us today for a free consultation on the best way to structure your project. One of our partners will get back to you quickly to help with the best plan to launch your service.