trademachine raises equity for its stock investment algorithm
Contxto – Brazilian fintech TradeMachine raised an investment last week for R$2.2 million (over US$520,000) from Brazilian Energhias.
The funds will be used to improve their current product, a platform that deploys algorithms to automate trade within the stock market. Plus, the startup plans to create an Applied Science Center in the São José dos Campos Technological Park (SP)
Moreover, the startup aims to increase the transaction amount under operations. It handled R$760 million (about US$179.8 million) last December but hopes to triple this number halfway through 2020. Accordingly, it wants to reach new users and will be hiring additional brokers.
AI-powered stock trade
Investing in the stock market requires background knowledge and a good deal of time to monitor news as well as trends in order to know where to put your money.
And that’s why often those who do invest rely on third parties like individual brokers and investment banks to do the task for them. And of course, these intermediaries usually charge a rate over the total amount you’re putting in, or over your earnings.
However, Brazilian CEO Rafael Marchesano and the team at TradeMachine have developed an algorithm that automates stock market analysis so decisions on when to buy or sell are faster and may yield better results. The algorithm can also apply investment strategies based on perceived market behavior.
Although unlike brokers who usually take a percentage-based cut, this fintech’s algorithm is “rented out” to users via a subscription plan.
Related article: Argentine fintech Ualá allows users to make investments in mutual fund with new feature
Investing trend on the rise
There’s a rising number of fintechs for investment management or that have developed features for making investments.
For example, not too long ago, we learned that Mexican Flink would allow its users to buy fractions of stocks pertaining to companies they love, like Netflix. In Argentina, Ualá is making it possible through a partnership with firm Grupo SBS Financial Services
Meanwhile, others like Fintual are completely focused on investment management.
As people in Latam become more financially savvy, the number of users for investment-type solutions will grow significantly.
But what’s a different matter is the actual yield these investments make.
Becoming the next Warren Buffet is not something that happens overnight.
Related articles: Tech and startups in Brazil!
-ML
