Despite the adverse effects of COVID-19, the cryptocurrency sector appears to be growing. This is evidenced by the myriad of new features, services, and platforms that are being introduced into the ecosystem. One of the newest of these comes courtesy of TradeStation.
TradeStation Launches Crypto Trading
This information is made available via a July 29, 2020 press release, which announces the new developments. As per the release, new features are being added to its crypto brokerage offering. These new features include cryptocurrency deposits and withdrawals as well as new interest-earning capabilities on eligible assets.
Users will also be able to track profit and loss (P&L), and mobile trading through the TradeStation mobile app. The release states that TradeStation Crypto is committed to improving and innovating their services for the benefit of clients. As a result of this development, their users can deposit the cryptocurrency they already own as well as buy and sell.
In the past, users would have had to lock away their cryptocurrency before they could earn an income on it. Now, they can earn interest on eligible assets without needing to do so. TradeStation also offers trading features for traditional investments such as equities, options, and futures.
This means that the TradeStation Group brand offers a full-service experience for users. They do not need to keep their traditional and cryptocurrency assets separate but can access them on the same platform. According to James Putra, Senior Director of Product Strategy at TradeStation Crypto, the currency investment landscape has contributed to the need for such a platform.
The current system is an ultra-low interest rate environment, he says. This means that investors might find it hard to earn interest on their traditional assets. As a result, they often turn to cryptocurrency to diversify their portfolios.
A New Way to Trade
TradeStation has been in existence for years and is one of the largest multi-asset brokers in the United States. It is, however, a subsidy of the Japanese Monex Group. This occurred in 2011 when the Monex Group acquired TradeStation for $411 million.
At the time, a U.S. subsidiary of Monex Group made a tender offer of 9.75 dollars a share for the company. Recently, Monex released their Financial results for the 1st quarter of the fiscal year ending March 31, 2021. The document shows that the company had an operating income of $8.2 million and a profit of $7.3 million.
This represented a change of 66.7% in their operating income and a 107.9% change in profit. The company also reported net assets of over 460 million dollars.
TradeStation and the Future of Fintech
TradeStation, before now, has had a high profile within the industry. They are known for being able to facilitate trading at very high speeds. While they have always been a favorite among day traders, this new announcement shows that they are expanding their offerings with regards to cryptocurrency.
It is no secret that cryptocurrency is more popular than ever, but there has been concern about how the industry will adjust to this new wave of growth. Following Robinhood’s crash in March 2020, there were questions regarding trading platforms and their ability to withstand volatility. However, as fintech is becoming more prominent post-COVID-19, it seems that more platforms like TradeStation plan to expand their offerings and improve their services.
Do you think these new features will be popular? Do you see more platforms offering such features? Let us know your thoughts below.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.