A former sales trader at UBS and Citi has today launched a new trading company, designed to appeal to high-performing traders.
CoalFace Capital is hoping to attract such traders through a reward system that pays traders based on their monthly performance. The company says it will return 80% of the revenue it receives from platforms by retaining active and consistent traders.
It believes that high-performing traders can generate additional income through their performance and activity.
Registered traders will be rewarded based on where they feature on a performance ranking league table.
Half of the incentive payment will be related to how large an account is and how actively that person is trading. The remainder is determined by where the trader ranks in the CoalFace League Table.
While the performance is weighted in favour of those who perform best, everybody who trades is remunerated, according to the statement.
Founder and chief executive officer Declan McEvoy was previously head of European investor sales at Standard Chartered, an executive director at UBS Investment Bank and head of Leveraged Investor Sales (FX) at Citi.
He said: “CoalFace is conceived and designed with traders’ interests at its heart. There is a need within the industry for serious traders to be rewarded for their trading. – CoalFace Capital is that mechanism.
“By utilising existing commercial infrastructure to reward traders, CoalFace Capital addresses a need within the market for a mechanism to compensate successful traders for their activity.
“By paying traders, CoalFace Capital reduces the ever-present temptation to over leverage that effects most traders. CoalFace Capital also helps trading platforms attract and retain high performing accounts. CoalFace Capital is the catalyst that helps both sides.”
Today’s announcement confirmed that partnership agreements with ADS Securities London, CMC Markets, FXCM and FX Pro have already been signed.
Details can be found on the CoalFace Capital website.