Robots the future for managed trading accounts? VC which invested $44 million thinks so

If MAM solutions, signal providers or EA developers had included a “roast mode”, regulators would be down on them hard, however London-based bot which seeks to perform similar functions has done just that and attracted $44 million in VC. What a strange world.

Perhaps those ubiquitous MAM accounts which proliferated the retail FX business via MetaTrader platforms ten years ago during the dawn of introducing brokers were avantgarde after all.

Back in the early part of the 2010s, many retail FX brokerages rushed to provide newly recruited introducers of business with multi-account management terminals via the MetaTrader 4 platform, which would subsequently be operated via Expert Advisors (EAs), which were trading robots made by private individuals and retail FX introducing brokers who managed the trading of accounts on behalf of their clients.

At the time, nobody really considered the value of such a simple yet effective method in which many accounts could be traded by one individual who often automated the trading via a robot.

Then came social trading, which was a method by which signals were provided to retail traders from ‘lead traders’, the idea being that less experienced traders would follow the ‘lead’ of those more experienced, and extend the length of time a less experienced trader would spend on a trading platform. These have almost all died a death now, leaving the role of providing quality signals to automated actionable content providers and charting software firms.

Now, the traditional wealth management sector is going down this route and embracing aspects of all three areas pioneered by the FX industry, and large venture capital is being doled out. After closing a $44 million funding round, British AI-based personal finance chatbot Cleo is turning the tables on its users and asking them how it should spend its money.

EQT Ventures led the round, with participation from existing investors, including Balderton Capital, LocalGlobe and SBI.

Launched in 2016, London-based Cleo integrates with users’ bank accounts and then uses AI to analyse spending habits and transaction histories to help with money management. The company has attracted a strong following among Gen Z with its conversational style, epitomised by a “roast mode”.

It would be quite easy to guess what the regulators would make of an FX EA, MAM or signal provider that would use that kind of terminology, but clearly it is ok if a firm positions itself as a ‘FinTech’…

Cleo now claims four million registered users, the vast majority of which are in the US, where some of the new funding will be used to make executive and product team hires in San Francisco, according to TechCrunch.

Now, with a healthy bank balance, the company is also asking users for ideas on how it can “help you get your money right”. Among the possibilities it floats in a blog is a “proper bank account”, which would mark a significant change of direction.

Read this next


These Altcoins Have The Potential To Make You a Millionaire in 2024

The crypto market is witnessing a surge, and certain alternate coins are catching attention for their rapid growth.

Digital Assets

Point72 invests $77.5 million in Bitcoin, Morgan Stanley holds $269.9 million

Point72, the $34 billion hedge fund owned by billionaire and New York Mets owner Steven Cohen, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.

Digital Assets

Binance claims Nigerian officials sought $150 million bribe

A Nigerian court has ruled that Tigran Gambaryan, a Binance executive detained on charges of tax evasion and money laundering, can stand trial on behalf of the world’s largest cryptocurrency exchange.

Digital Assets

Kraken reviews Tether listing in Europe ahead of MiCA adoption

Cryptocurrency exchange Kraken is “actively reviewing” whether to delist the stablecoin Tether (USDT) from its European platform, according to a report by Bloomberg.


Discover How MoonBag Coin Presale Stacks Up Against Dogecoin & Litecoin

Discover how the MoonBag Coin presale compares to Dogecoin and Litecoin, with unique features, a robust presale structure, and new opportunities in 2024.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: Federal Reserve Policy, USD, May 17 ,2024

Overall, both the Federal Reserve’s policy and the US dollar’s outlook are shrouded in some degree of uncertainty.

Market News, Tech and Fundamental, Technical Analysis

Ethereum Technical Analysis Report 17 May, 2024

Ethereum cryptocurrency can be expected to rise further toward the next resistance level 3200.00, which is the top of the previous impulse wave i.

Digital Assets

Hong Kong adopts digital yuan payments through Chinese banks

Hong Kong has launched a pilot program enabling digital yuan payments through major Chinese banks, marking the first instance of China’s digital currency project being deployed outside the mainland.

Retail FX

Saxo Bank increases client assets five-fold to $116 billion

Copenhagen-based broker Saxo Bank has achieved a major milestone, surpassing $116 billion (DKK 800 billion) in client assets.