An e-finance front-end that removes the ‘barriers to choice’ of retail investors is
proposed in the business plan.
In the stock trading operations business at present, there are web portals that provide
investor research and online trading. Interestingly, no single portal offers choices of
research to read and choices of brokers to trade with in any market segment of choice.
This obviously creates a need for having a central place where individuals can view
multiple research results, market segments and an assemblage of stock brokers.
The idea is to exploit this need of small but serious investors to be in control of their
Total Trader envisages to form alliances with various research providers as well as
brokers to provide this convenience to the increasing population of retail investors.
This way Total Trader would function as an authentic super market for stock buyers.
The transactions of retails investors will be aggregated and send to a well regarded
trading platform like Instinet Plc. This platform will perform the clearing operations
inlcuding money transaction. They will recieve a commission for the services. This
can now be built using the available e-commerce and transaction technologies.
Total Trader charges a flat fee for the provision of this high quality information and
with that an option to trade free of charge.
Key issues to be resolved:
1. The brokers (like Merrill Lynch, UBS Warburg, Morgan Stanley Dean Witter
etc) need to transfer their institutional excellence and make their research
available for publication at the Total Trader website
2. Partnership with an ECN (like Instinet Plc) to act as an agent between the
investors and brokers need to be formed
3. The security aspects of the web portal need to be discussed and finalised
4. Cost model for a ‘sticky web site’ need to be completed
5. Transaction model need to be analysed and engineered
6. Revenue and Cash flow model need to be analysed and estimated
7. Plans of competitors like E*Trade need to be understood
8. We have to begin the communication between the various stakeholders
9. Market penetration and advertisement need to be discussed
10. Convincing the companies like Reuters, Reuters Greenhouse Fund (e-finance
private equity), Instinet, or LabMorgan (e-finance private equity at JP Morgan
Chase) to fund this project.