Checkout Ziggurat! at Finovate. We are excited for CEO Sia Nazari. Happy to serve you.
by Dan Raju, CEO and Co-Founder
One single word that defines everything we do at Tradier is “Enablement”. Our products and services are meant to enable innovative investing experiences. Firms and developers can focus on investors, value creation and growth rather than complexities in technology, infrastructure, regulation and data. The following are some of the thoughts that drive our product strategies at Tradier.
1. Totally Self-Directed and Self-Service: Online Investors demand the ability to work on a “totally digital” end-to-end online experience. Tradier API’s enable an online experience from platforms where investors can digitally onboard, fund and invest through platforms powered by the Tradier API.
2. Mobile: By the end of 2020, Mobile will be the primary investing experience including Trading. The very definition of online experiences will be primarily associated with Mobile rather than with a browser on a desktop. The Tradier API’s have been built to scale and optimized for mobile and all major browsers.
3. User Experience is everything: Online investors react with loyalty to experiences that are simple, intuitive and most importantly convenient. Developers and designers can build totally embeddable and customizable user experiences on the Tradier API’s where they get custody, execution, and data all in one “Brokerage in a Box”.
4. Beyond an App or Website: Investors look at apps and websites as services and want these platforms to participate in their overall day-to-day. The API’s must support the distribution of functionality outside the application including IOT, Social, Messaging and voice. Experiences that drive these kinds of behaviors drive enhanced engagement and loyalty.
5. Data-Driven Personalization: Consumers want to configure their experience in ways that meet their needs. Data-driven personalization will become a huge trend. Consumers rely on platforms to automatically configure their platforms based on their usage. The Tradier engine stores a lot of critical, real-time and historical user data that can help create these experiences.
6. Unbundling of Legacy Brokers is in full swing: What legacy brokers and banks offered for decades is now being replaced by more agile, nimble and experience-centric platforms. Retail investors are willing to migrate to the newer platforms serving specific and broad needs. Consumers subscribe to ‘Best of Breed Services” than one large legacy provider that offers a large list of sub-optimal experiences under one roof. The Tradier engine today powers over a hundred platforms and is enabling Unbundling of Legacy brokers.
7. Next Generation Financial Products: We expect to see large implementations of investing taking the shape of a “Critical Capability” within large non-brokerage ecosystems. We expect to see large fintech ecosystems like P2P Lending, Ride-Share Firms, Personal Finance Apps, Small & Midsize Banks, POE Small Business Insurance providers, and others trying to offer investing capabilities to their consumer bases. Early offerings in this direction will attract a large number of consumers. Many of these large firms with ecosystems look at Brokerage to monetize its base (in addition to making their platforms sticky). The Tradier API’s can empower this generation of investing products.
8. International Offerings: The US markets and particularly US brands have always been associated with lives of consumers globally. We expect a large influx product from existing financial firms and new startups to offer the capability for consumers globally to invest in the US markets. The Tradier API’s have been built to support an international investor including Know Your Customer (KYC).
9. Convergence: Self Directed Equity Trading and Online Robo-Advisory Services that offer a self-directed experience to invest in Model portfolios will be more looked at as similar functionality. This will result in Online Equity Trading Platforms offering Model Portfolios and Digital Advisors offering direct stock purchase capabilities. Using the Tradier API’s you can build a Trading platform and a digital advisor into one seamless experience.
10. Subscriptions: We expect to see investing platforms offering fixed monthly subscription-based pricing models. Tradier offers rich set of simple pricing options that can enable firms to offer subscription-based investing products.
11. Abstraction: Users must be completely abstracted from Market Complexities as much as possible. They should not be distracted during their experience with Market Complexity. The Tradier API’s have been built to be compliant and provide the required abstractions from Brokerage, Clearing, Market Data, Regulatory, legacy infrastructure, and routing complexities.
For decades, large brokerage firms decided how the average investor invested in the stock market. The incumbent players set the goal posts on how investors learn about the market, process market insights, consume content, perform analysis and, most importantly the fees for service. With the limitations in technology, it comes as no surprise that the market is dominated by players such as Charles Schwab, TD Ameritrade, E*Trade, Interactive Brokers and Fidelity.
Over the last 7 years, however, the tectonic plates of financial services have shifted. Technology has altered the landscape of investor interaction with the stock market, now enabled by the internet, and the rising demand for digital investing experiences. These changes have led to rapid unbundling of the traditional brokerage house and investors seeking much better platforms and value that meets their own needs.
The inescapable demand for personalized experiences by online investors, paired with the inability of legacy brokers to innovate, has ushered in a new breed of offerings, apps and services that are bringing new ways of trading, investing and content to market. Tens of millions of online investors across the globe are adopting these platforms in droves. Supporting more than 200 of these platforms is an API-focused brokerage firm called Tradier.
Tradier was built with the goal of opening markets through an ecosystem that creates more choice, lowers prices, and encourages innovation in ways the traditional players have failed to enable. Brokerage is a burdensome, yet essential component required by any trading platform that seeks to connect investors to the stock market. Tradier solves this problem with its “Brokerage as a Service” offering. It offers a very rich suite of application programming interfaces (APIs) and web properties that simplifies what would be years of technology, regulatory and data hurdles. Companies can build trading and investing platforms within weeks, that traditionally required years and millions of dollars create.
As a cloud fabric offering, Tradier APIs are readily available for anyone to launch their investing platforms. Tradier provides an array of one-stop solutions ranging from APIs and web capabilities that enable developers to build custom trading, research, analysis, robo-advisory and real-time data applications. Everything from account opening, funding services, portfolio management, trading and reports are available and easy to adopt as APIs and web modules for everyone to use. Dan Raju, Co-Founder and CEO of Tradier says “Think of Tradier as your Brokerage extension whose main goal is to enable you and see you build great investor products and succeed”.
A few firms like Interactive Brokers, TD, E*TRADE offer connectivity-based products today but are limited by challenges attempting to put API wrappers on legacy backoffice infrastructures and support structures. Most legacy brokers have huge conflicts asking trading platforms to use them as a back office when they are offering direct investor products themselves that compete with them.
Today, Tradier is the fastest growing ecosystem of connected investor applications in the market with over 200 supported platforms. More and more active traders prefer to use a Tradier connected platform rather than the legacy alternatives as they always get better value, functionality and most importantly support.
TradeHawk, one of Tradier’s supported platforms, is among the nation’s fastest growing equity and options trading platforms. Built on innovative stock and options trading technology and designed by professional traders, TradeHawk has positioned itself as a viable alternative to TD Ameritrade’s Thinkorswim, Interactive Brokers, and Fidelity. With an intuitive interface and user friendly system, TradeHawk provides retail traders with an edge in the market to stay on top of current trends and identify investing opportunities.
Today, TradeHawk has gained wide popularity in the market and is highly sought-after by active traders who perceive it as an open, customizable platform with an engaging educational interface for options traders. Powered by Tradier, TradeHawk rapidly expanded its ability to offer a seamless experience with unlimited, commission-free equity and options trading.
This powerful combination of comprehensive trading services combined with unlimited, commission-free trading has accelerated the growth and adoption of the platform. TradeHawk subscribers have save thousands of dollars in monthly commissions while enjoying a holistic trader experience. TradeHawk offers order entry, order management, risk analysis, simulation, alerts, advanced and conditional orders, charting, portfolio management, and spread logs to name a few powerful tools.
As CEO Kevin "Lex" Luthringshausen says, “We at TradeHawk have a simple mission to provide the best technology, experience and value for our traders. We are happy that by leveraging Tradier, we are able to offer a compelling product in the market.”
Evati is a rapidly growing Digital Advisor. Evati had a simple mission: making saving and investing easy and accessible to everyone. CEO Pete Clemson wanted to create a product that would empower the everyday investor to balance today’s lifestyle goals with of tomorrow’s financial needs.
In order to accomplish this goal, Evati needed a brokerage solution that would enable average investors to open an account easily, fund their accounts with large and micro deposits seamlessly, and offer an intuitive portfolio experience in a scalable and secure manner.
Using Tradier’s New Account Opening API, Funding API, Account Services API and Trading API, Clemson and the Evati team were able to create an easy-to-use, inexpensive platform tailored to empower investors of any background to achieve even a wide range of financial goals.
Today, Evati offers an innovative way for casual finance dilettantes to be smart about their money. Investors of any experience can customize their investment goals and monitor their performance. Evati’s goal-based investing is free for the first month and then only $1 per month for accounts under $5,000 and after that a small 0.36% per year charge Yearly.
“We are excited about our growth and adoption of Evati from consumers,” said Clemson, “Tradier has been instrumental in providing essential brokerage microservices that Evati needs in order to deliver our services.”
Tradier is a unique solution designed to empower ideas. From TradeHawk’s equity and options trading platform to Evati’s robo advising platform, Tradier’s APIs can allow creative individuals to focus on harnessing the power of ideas without the hassle of piecing together the tech know-how.
Evati’s mission to help all Americans break out of living paycheck-to-paycheck and build a foundation for financial stability is starting to take hold. Their focus on continuous innovation and building a whole new way to think about personal finance is paying off as total assets under management grew to millions of dollars. This uptick is supported by a steady stream of downloads of the company’s updated app following a major upgrade to the experience in February.
Evati believes that transparency, simplicity, and honest value are the key to success. People work hard for their money. Saving and investing should be easy. That’s why the company takes user experience seriously while also doing everything possible to ensure their customers have rigorously designed investment portfolios, regardless of whether they seek short-term savings goals or long-term portfolios with 20+ year time horizons.
Behind Evati’s simple and intuitive app are powerful financial models and algorithms. Evati employs those tools, through its investment advisory subsidiary, Evati Advisory Services, LLC, to determine what kinds of investments are appropriate for particular investors. Evati Advisory then directs those investments into diversified model portfolios designed by Morningstar Investment Management LLC, a leading provider of discretionary investment management and advisory services and a subsidiary of Morningstar, Inc. Morningstar Investment Management seeks to build and manage model portfolios using a disciplined investment process to create strategies that incorporate a wide variety of investment objectives, and the portfolios are regularly monitored to help ensure they remain well-positioned and risk aware as the market changes.
“The best part about the results we are seeing is that this is just the beginning,” said Pete Clemson, Evati’s CEO and co-founder. “The level of innovation that occurs when you get the right team of experienced professionals together is simply astounding. Our whole team is thrilled about this rapid growth and we are already looking forward to bringing the next round of innovations to our customers.”
Evati Advisory Services, LLC is a registered investment advisor based in Evanston, IL. The company provides its investment management services through a sleek mobile app and through its website. Customers can start saving and investing for future goals with a few simple taps – all the tools are in the palms of their hands. Evati is easy to use, inexpensive, and designed to empower you to set, track, and achieve your financial goals.
In addition to partnering with its customers, Evati has a strong commitment to helping others, which is why, for every new account that is opened and active for at least three months, Evati donates one dollar to charity. The company deeply believes that its customers, employees, and communities are all on this journey together, and actively gives back to the communities where its employees live and work.
For more information about Evati, its funding and its charitable efforts, please contact Rob Spalding: 888-382-8475 or firstname.lastname@example.org.
Investment advisory services are provided by Evati Advisory Services, LLC, a registered investment advisor. Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. Morningstar Investment Management LLC is not affiliated with Evati, Inc. or Evati Advisory Services, LLC. Morningstar Investment Management LLC provides model portfolios to Evati Advisory Services, however Evati Advisory Services has full discretion to invest its client accounts in accordance with or to deviate from the model portfolios. Morningstar Investment Management is not acting in an advisory capacity to Evati Advisory Services’ clients. Brokerage services are provided by Tradier Brokerage, Inc., a registered broker/dealer and member FINRA/SIPC. All investments involve risk, including the loss of the principal investment. Investments are not FDIC insured. Past performance does not guarantee future results.
API Focused Business Model: Tradier was built with an “API First” focus. The company’s goal is to power other products that deliver value and innovation to Investors. Unlike traditional brokers who offer competing products that conflict with its API partners, Tradier encourages investor to subscribe to its connected platforms.
Complete Stock and Options API: The Tradier API includes following
1) Account Opening to build your own fully custom onboarding
2) Account Funding
3) Balances and Positions
4) Activity and History
5) Statements and Confirms
6) Equity Trading types across all US-listed securities
7) Single and Multi-Leg Options Trading
8) Real-time Data
Digital Advisory API (Robo Advisors): Tradier offers a unique set of new account opening, funding and brokerage API’s that are suited for Advisors who want to offer a unique and differentiating product to the market.
Rest based Approach: The Tradier API is secure and built to fully support HTTP and tested to function effectively across browsers, mobile operating systems and IOT devices. If you are building a Trading platform, Robo Advisor, Social, Mobile or a Web experience,
Performance Tuned: Tradier API calls are tested, tuned and used by actual traders and developers. Tradier is constantly looking at the responsive times of all our large and innovative companies using the Tradier API and has constantly made the Tradier API better.
Sandbox or Virtual Trading or Paper Trading : Tradier offers a Virtual Trading and Delayed market data API so that you can test a strategy with virtual money. You can use the Data API’s to build innovative products and also can offer virtual accounts to your customers. This is a great way to get new users to try your product quickly. Tradier’s Virtual Trading API supports Equity and Options Trading. This is another differentiator from Interactive Brokers.
Cost: Tradier does not charge for API usage. Tradier makes money like any typical brokerage. Commissions are structured so that customers are not paying large commissions and are able to keep these costs to a minimum.
Account Minimums: Tradier does not have account minimums for accounts. IB requires a 10K minimum.
Onboarding: Tradier supports International (Non-US) accounts. Tradier also collaborates with you to understand your product and help you navigate it through regulatory complexities.
Developer Focus: It’s built by developers, for developers. Tradier is one of the largest and widely used Fintech API in the market.
It’s about a partnership: Tradier strongly believes in co-innovation. Tradier works as an extension of your build process and we will be there to support you in technology, compliance, and launch.
Competing with you: Tradier is a B2B focused firm whose main goal is to support you on your growth journey. Unlike other brokers, Tradier does not have a combined B2B - B2C focus because they do not want to compete with their clients and partners who have a B2C focus.
Support: Tradier developers supports all aspects of the API and are available for you as your build and grow your platform.
Volatility, or Implied Volatility (IV) is a critical and essential metric when trading options. IV reflects the potential range of a stock’s price changes in the upcoming future, and has long been a requested piece of the Tradier ecosystem.
TradeHawk, powered by the Tradier, has upheld a commitment to innovation, creating useful tools for active traders and is happy to announce the newest addition to the TradeHawk: The Implied Volatility Suite.
Having a handle on where IV has been, especially in relation to the underlying historical volatility of a stock is a powerful feature. TradeHawk’s VOL Chart feature now gives traders a tabular and graphic representation of IVOL and HVOL over various time splices. Managing portfolios with such a feature gives traders added opportunity to easily search for the next great trade!
The plight of active traders today
The saying “one size fits all, really does not fit at all” can be best applied to the online stock trader market. More than 90% of total retail trading volume in the US stock market comes from active traders’ investors - individuals who trade more than 3 times a month. Most Active Traders are in a relentless pursuit to gain an edge in the market. What makes a trader better is a better set of trading tools, better community and better content.
Every trader is different. Every trader thinks and comprehends the market differently. Every trader consumes trading insights differently and ultimately buys and sells differently. The sheer diversity of trader needs poses a massive challenge for existing broker apps that are unable to deliver choice that the active trader needs. Traders have traditionally looked at online brokers to offer them a fitting trading platform but with no answer. Despite Active Traders, being the primary source of revenue for brokers, they have been mostly underserved
Today’s brokers have no answer
The legacy boxed brokers like Interactive Brokers, TD, E*Trade, Charles Schwab and Fidelity generally service a broader population, with a single one-size and price fits all offering. Providing the same experience for an occasional trader and someone who trades 30 times a month trader is impossible. A few incumbents like Robinhood today (and Zecco earlier) have spent hundreds of millions to attract young customers by offering “freemium” commission plans to their mobile apps.
Despite massive technological advancement, brokers have failed to deliver on the customization and value that traders need. particularly those that invest frequently. Traditional brokers continue to think, operate and offer vertical myopic products. Brokers continue to flood the market with confusing price discounts when the most active segment are demanding quality and edge, and just not price.
Developers have the answer
Tradier was built with primary mission of reclaiming trading from the legacy brokers and opening it up to developers and thousands of other products that need access to capital markets. Tradier built its own proprietary, multi-tenant trading technology that opens the brokerage capabilities that were locked inside brokerage firms and translates them into simple APIs that any developer can adopt.
Due to the pressing and growing demand from active traders for differentiating products, innovators and developers have used to Tradier API to build and offer an extensive list of applications. Using the API’s, Trading, that was locked within the four walls of the legacy brokers became accessible for everyone to innovate. Any developer or firm can now offer enable trading through Tradier rapidly. You can now build an Active Trading platform or a Digital Advisor (Robo) instantly without having to worry about massive operations, infrastructure and huge capital. What used to take 2 years can now be done in weeks or months.
Today, Tradier has over 100 plus connected platforms that are providing services to active traders and investors globally. Tradier connects platforms that offer a superior active trading experience at a pace of innovation that is unmatched by the incumbent brokers. Tradier fields tens of Millions of API calls, processing millions of shares and option contracts from partners and developers and has become default way to launch Trading products in the market.
The Tradier model falls in line with Stripe and Twilio, who have also adopted a “API Strategy of Enablement” to power as value ecosystem.
Tradier is a pioneered large ecosystem of platforms that empower active traders with dynamic choice, personalized trading interfaces and speed that investors deserve. The financial markets are fast becoming an open, vibrant, and diverse ecosystem and Tradier has been crucial in leading the charge to unbundle them.