Website Closers® presents a unique Tech Business that has become a proud industry leader of innovative programs for Equity Traders. Ownership brings traditional family values to the trading industry – a notoriously hostile and often lonely environment – which helps to build trust in an otherwise untrustworthy ecosystem.
Hard work and helping one another are the foundation and a large part of the company’s success. With these traditional values, business knowledge, and a combined 90 years in trading and investing, the team offers the trading community a supportive platform with value and trust, partnering with traders from all walks of life worldwide. This business has spread almost entirely by word of mouth. The owner has not been aggressive at marketing this business. Instead, ownership has astutely decided, since inception, to play the long game and has spent most of the time building a solid business model with a concrete foundation and focusing on offering the highest quality in customer experience with an emphasis on honesty, integrity, trust, and value. The business aims to be its traders’ most trusted partner.
The company found a niche in the market upon launch. It fell into a group of customers who were already trading and using prop firms. While not a traditional prop firm, traders on this platform like the honesty and integrity that is built into the fabric of everything the firm works on. Those traders transitioned to the platform, and based on their positive experience, spread the message by word of mouth very quickly. As was part of the architecture from the beginning, they have achieved a very high brand perception.
The business has achieved success through various strategies, including allowing customers to:
- Enter the market on a low-risk, affordable platform
- Set a budget and practice in the market before directly investing
- Trade simulated funds and become market-educated with the opportunity for potential payouts, including through competitions with peers
- Practice managing risk and trading with consistency
- Test the market and hone their skills
- Practice the consistency and discipline needed for the potential to become an independent trader and investor
- Improve knowledge before directly investing their own money into the market.
The company has built the foundation for enormous growth and profitability and is now ready to expand in multiple directions. And the downtrend in the US equities markets is having no impact on the company’s ability to bring on new users to their platform – even in a downtrend – traders still want to practice trading the market since success in trading can be possible whether the overall market is up or down.
Until now, lead generation has comprised of word of mouth, working with affiliates, and being active on YouTube. Emails are also sent out weekly to monthly with current promotions. The company has not yet been introduced to the general global public who are or desire to be retail investors.
Additionally, the business has only served a niche within futures traders. The company has worked with approximately 23,000 futures traders in the past three years. For perspective, a more established trading company has over 500,000 futures traders. Building a reputation and focusing on core values and an excellent platform before becoming too large too quickly was always the plan but has taken great discipline to maintain, with growth opportunities ever present. The company is ready to market and scale and given its organic success, is primed for an enormous customer uptake.
For instance, there are growth opportunities in expanding the company’s offerings to individuals who are current traders of Stocks, Nano Bitcoin, Nano Ether and Event-Based Contracts, Crypto, Forex, and EUREX in trade rooms across the world.
This business is data-driven and has developed software to understand the success rate of each account. Seven subscription options and two non-subscription account options are offered. Top selling services include subscription packages and resets. The 14-day contract is the revenue driver. Suppose traders reach the stop loss of their chosen account within their subscription period. In that case, they can purchase a reset to reset their account to the initial balance to continue trading within the subscription month. The tail now wags the dog, with resets bringing in the most income across all services.
Performance accounts are available when traders qualify in their practice accounts. These performance accounts are where traders have the opportunity for potential payouts upon achieving specific financial benchmarks over time.
Others within the futures trading industry typically witness a slower summer period. This business has experienced little seasonality, except for a slight trough in July. Notably, more volatile markets will yield more revenue due to traders resetting their initial balance during a subscription month.
A new owner will require virtually no working capital. The business fulfills all expenses with monthly cash flow. A reserve liability was established when the company opened, as management had no data on the percentage of traders receiving payouts over time. These reserves have never been paid out, and all payouts and company expenses are covered with monthly cash flow. A new owner may choose to keep no revenue as a reserve since this has never been paid out, and the company now has data to support releasing all reserves. The typical customer currently is a trader who was using prop firms or a futures trader.
As the business has grown from strength to strength, the owner maintains a light workload of around ten hours weekly. Primary tasks include:
- Analyzing data
- Overseeing financials
- Guiding strategy and growth
- Working with legal
- Working directly with the CEO
The CEO, brought on in early 2022, is the only full-time employee and handles all day-to-day business operations, assists with outreach, implements all goals and strategies, oversees team members, and assists with customer support, hiring, and training new staff members.
Six part-time customer service reps work on a contract basis, and another handles PA and qualified practice accounts, month-end trader payouts, PayPal and Stripe disputes.
Under focused and knowledgeable stewardship, this acquisition opportunity has nearly endless scale potential. Growth prospects are almost unlimited, and the possibility for an IPO is at its fingertips.
