Investoo investors brave financial trading storms

Investoo investors brave financial trading storms

Friday, December 16, 2016 Posted by Andy McCarron
New investment for financial trading affiliate site

In the midst of one of the stormiest periods in the short history of the financial trading sector, an affiliate business targeted at educating potential novice market traders has managed to secure funding to the tune of $2m to further its ambitions.

Investoo is a UK-based financial trading online educational platform that currently has over 50,000 actives members signed up to courses in binary options, forex and Contract for Difference (CFDs).

It has announced new funding from Optimizer Invest, Kinetic Investments and from the founders of Right Casino, the casino affiliate business previously sold to Catena Media in which Optimizer also has a stake.

The financial trading sector has come under the spotlight in recent weeks after first the Cypriot financial authority and then the UK’s Financial Conduct Authority (FCA) announced proposals to tighten up the regulation of the sector including looking at the banning of bonuses and the introduction of leverage limits.

In the case of the FCA, the body also questioned publicly the need for the product to be offered at all to retail clients.

Founder Adam Grunwerg, who has ambitions to turn Investoo into one of the biggest affiliates in the sector, said he believed the moves on the part of the regulator had been expected but that his business will be able to withstand the shock.

“From an affiliate point of view, I think it’s quite good for us,” he told TotallyGaming.com. “In terms of removing bonuses, it hurts our competitors much more than it hurts us. It makes things like trading education more important, sending high-value traders and clients who understand the risks involved and understand how to trade. Rather than just sending traffic that is going to lose their money right away from a bonus or other scheme.”

The new investors will be taking a hands-on approach to Investoo. David Merry from Kinetic was involved in the $9m sale of Right Casino to Catena while Sam Miranda from Right Casino itself is involved in the investment.

New services due to be launched by Investoo include a forex signals service called SnipeTheTrade.com, run by a professional forex trader which enables new traders to follow his trades and profit (or otherwise) from them.

Grunwerg said that despite the recent regulatory upheavals, innovation was happening in the binary space with exchanges such as Nadex and Daweda, a recently launched P2P binary options exchange based out of Cyprus. He suggested that it would be wrong for the regulators to look at banning the product altogether.

“I don’t think it would make sense to ban that form of binary options retail trading if it’s done in a safe and transparent way,” he said. “If you look at what the FCA said, they thought it was unfair brokers were trading against the clients and the pricing was unclear. It was hard for retail clients to understand why the payout was set at what it was.”

He added that the simplicity of the product meant clients were trading with very little education of understanding of the risks involved.

Totally Gaming says: Financial trading is a tough market right now. The regulators have effectively just thrown the book at the industry, hence the extreme share price falls among the larger London-listed entities such as IG Group, CMC Markets and Plus 500. The investors in Investoo clearly have form when it comes to the affiliates space, but they will need to hold their nerve should the regulations around binary options in particular tighten next year. 

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