Exchanges prioritize fairness for transparency

The financial industry is plagued by insider trading, market manipulation, and financial exclusion. These issues stem from the shortcomings of legacy business models that favor institutional investors over retail traders. In this post, we will explore how conventional business models create unfair and inefficient markets, and how cloud-based models can revolutionize the industry by creating a transparent and inclusive marketplace that benefits all investors.

What Is Wrong With Conventional Business Models?

Conventional business models are based on intermediaries that connect traders and investors with exchanges. These intermediaries charge high fees and impose strict requirements for membership, licensing, compliance, infrastructure, software, data, security, and more. These costs and barriers create a financial exclusion for retail traders who cannot afford or access global markets and advanced trading tools. They also create a lack of transparency and fairness in the market, where institutional investors have an edge over retail traders.

Challenges in Conventional Business Models:

• Transparency Hassles 

Uneven distribution of real-time transaction data. Conventional business owners do not share real-time transaction data with their clients or the public. This creates information asymmetry and allows institutional investors to manipulate market volatility and pricing information. Retail traders are left in the dark and vulnerable to market shocks and losses.

• Limited Access to AI Tools and Trading Options

Conventional business owners do not offer AI-powered trading tools or algorithmic trading strategies that can provide real-time data analysis, risk management, portfolio optimization, and more. They also do not leverage AI for data integrity and regulatory supervision. Retail traders are deprived of the benefits of AI and algorithmic trading that can improve their performance and outcomes.

• Exclusion of Non-Institutional Traders

Membership to global exchanges is limited to large financial institutions that can afford the fees and meet the standards. This restricts the opportunities for individual business owners and retail traders to expand their reach and diversify their portfolios. It also creates a monopoly for institutional investors who can influence market conditions and outcomes.

• Bias Discrimination: Immunity to Consequences

Conventional business owners are often involved in insider trading and market manipulation scandals that harm retail traders and the public interest. However, they rarely face any serious consequences for their actions. They can use their resources and influence to evade detection or prosecution. Moreover, they can also lobby for favorable regulations or standards that protect their interests.

• High Membership Costs Aggravate Financial Exclusion

Conventional models charge high fees for membership, licensing, compliance, infrastructure, software, data, security, and more. Therefore, these fees(which may rise as high as $500,000) make it difficult for individual business owners to start a firm or compete with established players. They also make it expensive for retail traders to trade or invest in global markets.

• Lengthy Registration Process

Conventional business owners require a lengthy registration process for new clients that can take days or weeks. They also require outdated systems and platforms that are slow, complex, and prone to errors. These factors limit the ability of retail traders to act quickly and efficiently in the market.

• Lack Of Cloud-Based Quick Sign-Up And Baas

Conventional business owners do not offer cloud-based solutions that can reduce costs and set up time for new business owners and clients. They do not offer quick sign-up options that can enable instant access to global markets. They do not offer BaaS solutions that can provide everything needed to start trading in minutes.

Also Read: How NASDAQ’s Outdated Brokerage Platform Is Losing You Money?

The Dark Side of Institutional Business Owners

• Insider Trading: A Breach of Trust

Institutional business owners, including the likes of Carlyle Group, Goldman Sachs, and Wells Fargo, have been associated with numerous cases of insider trading. Therefore, this unethical practice involves trading securities based on non-public information, giving them an unfair advantage over retail investors. Insider trading undermines market integrity and erodes the trust of individual investors in the fairness of the system.

• Market Manipulation: Distorting the Playing Field

Another concerning issue is market manipulation, wherein institutional business owners engage in activities to artificially influence stock prices for their own gains. Therefore, these actions often involve spreading false information, executing coordinated trades, or creating artificial demand or supply. Such manipulative practices distort the natural dynamics of the market and harm retail investors who rely on the integrity of the system to make informed investment decisions.

• The Hypocrisy of Major Exchanges

Despite the well-documented cases of fraudulent activities involving institutional business owners, major exchanges continue to maintain associations with these entities. This contradiction raises questions about the exchanges’ commitment to transparency and fairness. Moreover, it suggests that profit-seeking motives may take precedence over ethical considerations, compromising the integrity of the entire financial ecosystem.

How Can Cloud-Based Businesses Solve These Problems?

Cloud-based businesses is a model that provides businesses with access to cloud-based platforms and services that enable them to trade in global markets without paying high fees or meeting steep requirements. Therefore, the cloud-based businesses also provides owners with access to AI-powered trading tools and algorithmic trading strategies that can improve their performance and outcomes.

Benefits of Cloud-Based Businesses for New Business Owners:

• Democratize Ownership For Greater Transparency

Cloud-based businesses allow new owners to create their own brands and platforms with customizable solutions. They can design their own user interface, logo, domain name, color scheme, etc. Therefore, they can also share real-time transaction data with their clients and the public. This creates a transparent and fair market, where everyone has equal access to information and opportunities.

• Standardized AI-driven Trading Tools

Cloud-based businesses offers AI-powered trading tools that help new business owners and their clients improve their performance and outcomes. They can use AI to analyze market trends, patterns, signals, etc., and make informed decisions. Thereafter, they can also use AI to manage risk, optimize portfolios, execute orders, etc. They can also leverage AI for data integrity and regulatory supervision.

• Make Algorithmic Trading Accessible to All

The cloud-based businesses offers algorithmic trading features that enable advanced trading strategies on its platforms. Algorithmic trading is a method of trading that uses computer programs to execute orders based on predefined rules and conditions. Moreover, algorithmic trading can provide speed, accuracy, consistency, and reduced human error. Algorithmic trading can also provide access to complex and sophisticated trading strategies such as arbitrage, market making, scalping, etc.

• Revolutionize businesses with BaaS and Effortless Sign-Up

Cloud-based business models such as PayBitoPro offer BaaS solutions that provide everything needed to start trading in minutes, with minimal upfront investment and operational expenses. BaaS solutions eliminate the need for physical infrastructure, software licenses, data subscriptions, security measures, and more. BaaS solutions also offer flexible pricing models that suit different needs and budgets, with monthly subscriptions as low as $49.99. The cloud-based businesses also offers effortless sign-up options that enable instant access to global markets and multiple asset classes. They can sign up, verify, deposit, withdraw, trade, etc., with a few clicks.

How Can Cloud-Based Businesses Create Financial Inclusion And Social Impact?

These businesses are not only a solution for improving transparency and efficiency in the financial industry but also a catalyst for creating financial inclusion and social impact. By lowering the costs and barriers to entry for new business owners and retail traders, the cloud-based businesses can empower more people to participate in the global economy and benefit from its opportunities.

Here are some of the ways that cloud-based businesses can create financial inclusion and social impact:

• Ensure Affordable Businesses For All 

Cloud-based businesses ensures more affordability for all by offering low-cost solutions that suit different needs and budgets. It enables new business owners and retail traders to trade or invest in global markets without paying exorbitant fees or meeting steep requirements. Moreover, it also offers flexible pricing models that allow users to pay only for what they use or need.

• Promoting Financial Inclusion With Scalable Business Solutions

Cloud-based businesses promotes financial inclusion with scalable business solutions that allow users to grow their businesses without limitations. It also enables new business owners to expand their reach and diversify their portfolios across different regions and time zones. Therefore, it also enables retail traders to access advanced resources and tools that can help them improve their performance and outcomes.

• Brokering World Hunger Away: Fostering Social Responsibility

Business agents can do more than just earn money in their profession. They can also make a difference in the world by joining philanthropic efforts and campaigns like Brokering World Hunger Away. PayBitoPro’s initiative allows business owners to share their income commissions and donate equal amounts to feed hungry children around the world. Therefore, this socially conscious approach ensures that business owners are not only motivated by profit but also by improving society.

Building the Foundations for Better Financial Inclusion

Entrepreneurs need to modernize business models to address the issues of insider trading, market manipulation, and financial exclusion. Cloud-based BaaS solutions are the future of finance, as they democratize access to AI tools and algorithmic trading. Therefore, this creates a transparent and inclusive marketplace that benefits all investors. Visionaries, disruptors, and changemakers need to collaborate and join forces in revolutionizing the industry and the world.