Traders Cafe?

[ragingbull8]

Hi,

I can see that there are alot of active investors posting on this board aswell as people looking to get into trading but are in need of help, support and advice. I believe there are many people out there who want to take control of their finances by trading off their own account.

A majority of brokers use the same kind of software which is now available to the retail market. As i am sure you are all aware they make their money through the commission they charge you for their 'expert' advise.

There are ways out there to take total control of your investments but people don't have a thorough understanding of how the markets and certain instruments actually work so this prevents them from doing so.

I would like to get some feedback about a potential business opportunity me and my friend (who works for a provider of internet trading services) are talking about.

I have an image of an internet cafe style trading center where there will be state of the art equipment available and full time advisor's handy to assist. It will be in very comfortable surroundings and for a fixed daily or monthly fee people would have access to this service.

I know that there are problems with some peoples internet speed and this can really affect them in the markets. Also people may get lonely and bored trading alone all the time and I believe it would be good to share the experience with friends as if you where at a horse race. Make it into a social experience aswell as a profitable one.

A lot of the big firms offer training seminars in CFD's and spread betting to a room of say 300 people but say if you could learn about the markets and instruments face to face in smaller groups. Would that appeal?

I would appreciate any feedback from investors/potential investors like your selves.

Thanks,

RagingBull

 

[jong52yuara]

at least you should tell us where is the location? lol..
normally home trader prefer to do it from home, because forex is 24hour, i dont think this idea is very convienient

 

[ragingbull8]

at least you should tell us where is the location? lol..
normally home trader prefer to do it from home, because forex is 24hour, i dont think this idea is very convienient

If anything I am just curious if such a thing exists and if not why not? It is just a concept I was thinking about so havn't given much thought to an exact location. I realize that forex is 24hour but I am really talking about spread betting and CFD's.

I just noticed that there is a trading arcade section and will continue this thread there.

 

[DT]

Not sure about how feasible your idea is tbh... - what could you offer that an established trading arcade couldn't? As a new operation how do you expect to provide the sort of volume clearers will require from you in order for you to compete with the established arcades.

 

[jong52yuara]

the idea can attract lots of people if gambling industry is popular in that country. sure it can generate moneys, probably need a gambling license and stuff? need a very good marketing strategy to convince people that playing on casino and lottery has very low chance of earning money, but switch to CFD and spread betting has much higher chance or something like that..

if you can make the premises like small stock exchange center, that would be great! sure people will interested with the arcade

 

[tomhunter]

the idea can attract lots of people if gambling industry is popular in that country. sure it can generate moneys, probably need a gambling license and stuff? need a very good marketing strategy to convince people that playing on casino and lottery has very low chance of earning money, but switch to CFD and spread betting has much higher chance or something like that..

if you can make the premises like small stock exchange center, that would be great! sure people will interested with the arcade

Better off not aiming at the masses IMHO you want to be aiming at people in the insustry.

 

[ragingbull8]

Better off not aiming at the masses IMHO you want to be aiming at people in the insustry.

That may be true but say if it where based in a popular holiday/gambling destination it could open it up to a whole new market. There are people gambling all the time in casinos so why not introduce the idea of trading to them?

The cafe could be an introductory broker to a large company, take CMC for example (http://www.cmcmarkets.com/partners/europe/eng/ib.jsp)

I am just curious if this kind of system is being used anywhere?

 

[ragingbull8]

the idea can attract lots of people if gambling industry is popular in that country. sure it can generate moneys, probably need a gambling license and stuff? need a very good marketing strategy to convince people that playing on casino and lottery has very low chance of earning money, but switch to CFD and spread betting has much higher chance or something like that..

if you can make the premises like small stock exchange center, that would be great! sure people will interested with the arcade

That is a good idea, it could be like a recreation of a 'steriotypical' trading floor and show people that anyone can have a punt on the markets and that there is much more chance of making a profit than other types of gambling.

Imagine if something like that took off in Vegas or Atlantic City, could bring in alot of new clients.

 

[DT]

show people that anyone can have a punt on the markets and that there is much more chance of making a profit than other types of gambling.

what makes you think that is true?

 

[ragingbull8]

what makes you think that is true?

Because in a way you are taking a semi-calculated risk. Putting money on a roulette table is just pure chance. Don't get me wrong there are other types of gambling where you can take control of you destiny to some extent, and spread betting and CFD's fall into that category so why not open the idea up to a retail market that may have thought you need a business degree to profit from the markets?

 

[DT]

futures traders are basically playing a less than zero sum game

spread betting punters are at an even greater disadvantage - as far as the average casino 'punter' is concerned they might as well be playing roulette

If you're talking about setting up some sort of trading shop/bookies open to the public as an Introducing Broker to the likes of CMC then you'll probably need to register with the FSA and would have a load of compliance issues to deal with. If you're targeting gamblers then you've probably got some issues with client suitability already.

 

[ragingbull8]

futures traders are basically playing a less than zero sum game

spread betting punters are at an even greater disadvantage - as far as the average casino 'punter' is concerned they might as well be playing roulette

If you're talking about setting up some sort of trading shop/bookies open to the public as an Introducing Broker to the likes of CMC then you'll probably need to register with the FSA and would have a load of compliance issues to deal with. If you're targeting gamblers then you've probably got some issues with client suitability already.

DT, I havn't given the idea that much thought to be honest. As far as the regulations i would imagine that clients would have to set up an account (as they do with brokers) and checks would need to be done of course. You would need to work out risk cap, suitability, credit check and the rest. Like I say I am no expert but i believe it is not impossible to get that kind of business registered.

 

[tomhunter]

Because in a way you are taking a semi-calculated risk. Putting money on a roulette table is just pure chance. Don't get me wrong there are other types of gambling where you can take control of you destiny to some extent, and spread betting and CFD's fall into that category so why not open the idea up to a retail market that may have thought you need a business degree to profit from the markets?

Because gamblers don't give a toss about expectation otherwise they wouldn't be gambling with the worst of it. They just like the excitement and in a way i think spreadbetting etc wouldn't appeal to them as much.

Cheers

 

[ragingbull8]

Because gamblers don't give a toss about expectation otherwise they wouldn't be gambling with the worst of it. They just like the excitement and in a way i think spreadbetting etc wouldn't appeal to them as much.

Cheers

What isn't exciting about watching the markets move and deciding when to take a profit/cut a loss? Gamblers generally gamble because they want to make money, not throw it away. How many gamblers do you know who enjoy throwing away their money?

It odiously wouldn't target gamblers purely, and comparing investing to visiting a casino is not a reasonable comparison. What I am trying to say is that there must be a way of introducing the idea of trading to a retail market while making it fun, exciting and informative all in the same place.