StoneX dives deeper into retail trading, buying Chasing Returns

Brokerage house StoneX is apparently looking to increase its footprint with online retail traders, and has acquired a majority interest in Dublin, Ireland based fintech company Chasing Returns.

The Irish Times has reported that StoneX (NASDAQ:SNEX), which took over retail trader focused brokerages Forex.com and City Index as part of its $236 million acquisition of Gain Capital last year, has already integrated Chasing Returns’ software into Forex.com and City Index.

Chasing Returns uses behavioural science to help (mainly) amateur traders improve their returns. The company’s tools also help forex brokers with client retention, believing that all solutions to retention problems must be based on understanding and responding to how traders behave, not on how we think they should behave.

The company’s trading performance management portal allows traders to analyze their trading behavior and identify their strengths and weaknesses in a host of strategy and psychological edges, with features such as goal setting encouraging the journey towards profitability.

Traders will be able to answer questions like:

• Is trading too quickly causing losses?

• Have I a strong track record in a market that you trade infrequently?

• Am I consistently making better trades in the mornings?

Chasing Returns’ Risk Console is a live trading tool that allows traders to track their targets and limits in real time.  It encourages better behaviour and gives live alerts when a trading rule is broken or at risk. This instant feedback reinforces good habits and puts traders on the fast track to positive trading behaviour.

Traders can answer questions such as:

• Am I staying in losing trades too long, or cutting winners too quickly?

• Am I consistently closing small winners that don’t hit my targets.

• Is bad discipline eroding my Profits?

The Dublin based company has a small, eight person team, and also boasts OANDA as a client.

As StoneX has not made a formal announcement about the investment, we believe that the acquisition would be considered immaterial to its operations, or else as a public company it would have done so.

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