Where we came from, where we're going
Jahan and Richard were both consultants with the same investment bank. They started to see ways the technology in banks can be brought to retail traders.
Investment banks and other large financial institutions use economies of scale to get advantages over each other. They execute their trades in venues that were, historically over decades or centuries, built for them and continue to be dominated by their business. Due to their pooling of activity for thousands of wealthy clients they can afford seats on exchanges, colocation, huge cheap margins and low fees. They employ the most skilled financial and technological experts in order to get a competitive edge. The tools they develop combined with their scale and direct market access mean that retail investors by contrast, have to accept a much reduced class of service. Individual investors must work through brokers who themselves charge significant fees without being able to match the big players from a technological point of view. For the average investor, it seems a fools game.
But Bitcoin was created by software cryptographers with a libertarian political direction. They had no respect for - indeed they were suspicious of - the historical construction of finance. They wanted freedom, specifically, from central banks however freedom in general has central to the DNA of cryptocurrencies from the outset. Therefore cryptocurrency code is always open source. Exchanges provide open APIs by default. There are no ‘seats’ on these exchanges - it is open access to all. The barriers to entry are basically non-existent.
This is where Jahan Zahid and Richard Hickling saw their opportunity: take the types of tools they had worked on in investment banks and make them available to retail crypto traders.
The low barriers to entry for crypto has led to rapid uptake and a great diversity of exchanges and currencies. As a result the typical trader is an individual without a financial background who doesn’t have access to the resources a professional trading desk would see as necessary. They have no bespoke trading software and no middle- and back-offices as they do in banks and trading companies where Jahan and Richard learned their skills. However, crypto investors are very often technically knowledgeable and in many cases skilled programmers. Crytpo exchanges’ open APIs and low fees - and direct encouragement - make it surprizingly easy to trade algorithmically.
ProfitView tries to cater for these players. We want to do the technically complex arithmetic that serious traders would have to implement in spreadsheets or with bespoke software - an tiresome and error-prone activity. Our work means our customers can see their PnL clearly in aggregate in the currency of their choosing even when trading mulitple cryptocurrencies and derivative products on multiple exchanges. We enable strategies that would be too risky to execute without the clear view we provide.
We will keep communicating with our users and the crypto market to determine how else their trading experience can be improved. We will bring in more exchanges, provide enhanced views of customers positions and give them ways to share their trading experiences.
ProfitView makes the trading experience - and traders - better.