Shares digital

Active traders have high expectations, not least access to a range of different instruments and investments

by Alex Poole

The more active trader has a very specific suite of needs. Frequent traders will make more demands from their provider when it comes to things such as execution and pricing. It also stands to reason as they are in and out of the market more often, all the issues that traders have to contend with are magnified.

The issue of pricing is certainly one Paul Friel, head of client contacts at Barclays Stockbrokers, is keen to emphasise. ‘We’ve retained price points on our BARX platform under tough market conditions,’ says Friel, ‘and our customers appreciate this’.

BARX, which scooped the 2007 Shares Award for Best Active Trading Tools, was designed as an advanced platform for more active traders looking for multi-product access. ‘We’ve recently had independent research carried out which shows that our client base is a very active one,’ reveals Friel, ‘so providing for these customers – who have high expectations in terms of service and quality products – is something we have had to move on. BARX even has a microsite dedicated to active traders. ’

Access all areas

Friel also broadens the pricing aspect out to include multi-product access – a feature today’s sophisticated trader is likely to demand. ‘We’ve got a keen pricing policy – for example clients who trade more than 25 times per quarter get free access to Level 2 [market depth data] – but good pricing is also about allowing clients to benefit from popular markets without charging them extra to do it,’ explains Friel.

Traders can use BARX to access different investments and instruments, including equities, CFDs, covered warrants and iShares, as well as streaming tick charts with more than 50 customisable technical indicators, charts and drawing tools. ‘The service is institutional grade in quality but also great value, which is what active traders want,’ says Friel.

Stephen Barber, head of research at Selftrade, agrees with Friel that active traders and investors will be looking for a broad scope of products online. ‘It is important to offer a range of markets and instruments,’ says Barber. ‘For example, ETFs are very popular at the moment. Currently, our clients can access these and also UK and international equities, ETCs, bonds, funds and warrants – all in one account.

‘The ability to search markets and instruments is important, as is the facility to quickly get the point where you can trade,’ says Barber. ‘Active traders are also looking for reliability, and support if they need it. For example, they may have a large or complex order and need help to place it.’

James Daly, investor centre representative at TD Waterhouse, also feels it is important to cater for more active traders. ‘We have a ProTrader account for more active traders – this provides these clients with Level 2 access, and tools such as charts,’ says Daly. ‘The charting tool also allows traders to create charts with 12 years’ history, which is a useful feature.

‘Another interesting part of our service is alerts – these can be customised in lots of interesting ways, for example traders could set up an alert to flag up hot movers and alert them to a stock they have not even heard of.’

Control and convenience

Special features such as customised alerts are part of the drive towards giving busy active traders the control they want in a way that is convenient for them, and Daly reckons ProTrader scores here, too. ‘With us, you can do almost everything online – not just trading, but you can get statements by email and keep everything together in one online account. This is very convenient for people who want to manage their own trading and finances.’

Convenience is a factor that is also very much on the radar for David Jones, chief market strategist at IG Index. ‘Traders may be very busy or on the move while the markets are open,’ says Jones. ‘At IG, we offer a mobile version of our platform PureDeal – so clients can trade markets using their mobile phone or Blackberry.’ Traders can use the mobile software to access positions, make trades, and place orders.

The main PureDeal platform also offers many features useful to the active trader, such as one-click dealing, fast execution, and trading tools including Reuters news and a ‘professional-level’ charting package. ‘Ease of use is very important for more active traders,’ says Jones. ‘For example, we have introduced DealThru – this is essentially dealing from charts, so traders don’t need to go back into the platform to place trades. Instead, deals can be placed with one click from the chart they’re working on. Traders appreciate tools that can help them and free up their time.’