Retail demand for options trading continues to grow faster than any other segment. With a new daily record of more than 68 million contracts traded set in February, the surging activity is easy to see – but for financial services firms and fintechs catering to the retail community, capitalizing on this demand is another matter entirely.
Starting up an options trading business is difficult for any firm. Options are a unique asset class that requires sophisticated technology, risk management and trade order capabilities. Options are used in many ways. Like stocks, they can be utilized in strategies that generate profits in the form of market direction – but they go much further. Retail investors can also use options to generate yield, hedge positions already held, buy stock at lower prices, define outcomes across various scenarios, take advantage of changes in volatility or the passage of time, and even position themselves to make a profit when expected events do not happen, all while using a fraction of the capital that would be required to own or short the underlying securities.
With such a diversity of use cases, it is no wonder that options have become such an exciting and in-demand asset class. But for financial services firms looking to provide access to options, this diversity presents a need for more sophisticated and complicated technology, client display requirements, risk management, calculation and rule engines and operational capabilities. Given these challenges, it’s no surprise that most financial services and fintech firms struggle to build options trading technology themselves.
That’s where ViewTrade can help. We provide everything financial services and fintech firms need – full-stack technology, support and brokerage services – for a turnkey options trading solution. We are the innovative partner that firms need to meet the retail demand for options seamlessly and speedily. In this way, working with ViewTrade means more than working with just another technology provider – it means powering a distinct new line of business, and reaping all the rewards that come with that at a fraction of the time and cost needed to build it from scratch. And as with everything we offer, our highly experienced client service organization stands ready to provide any support needed.
With the right approach, options businesses can be very profitable for financial services and fintech firms. These companies should think twice before engaging B2C technology providers that also offer their services on a B2B basis. Too often, these providers use this model to compete against their clients for direct retail and institutional accounts. In contrast, ViewTrade always acts in a B2B partnership capacity – never as a competitor. We are 100% focused on helping our B2C and institutional clients grow.
With ViewTrade, financial services firms and fintechs can lay a solid foundation for creating a profitable retail options trading offering that aligns with their precise business goals. And that’s just a taste of what ViewTrade can do.
Reach out to us to initiate a conversation. You’re closer to being able to offer options trading to your clients than you may think.