The proposed marketplace Rain Trader will go live from July 1, and take on the segment peers like Smallcase, Tradetron and Algobulls, co-founder and chief executive Raghu Kumar told PTI from California on Monday.
The platform has been running in-house for the past three years, he said and claimed that it helped them book over 100 per cent returns, and the July 1 launch is primarily for retail customers.
Already 50,000 orders worth Rs 5,000 crore take place on average on the platform every day, he said.
On the regulatory side, he said Rain Trader doesn’t have a Sebi registration as it is neither a brokerage nor an investment advisor. However, he could not clearly answer as to whom a customer can approach if there is a complaint. He also failed to answer clearly how investment strategies can be called a product and not a service.
“We don’t have a Sebi registration because we don’t need one, as we aren’t a brokerage or an investment advisor. We are an investment marketplace, offering an investment product,” he insisted.
He also parried a question whether as an IT product is it answerable to the Union IT ministry or not.
Rain Trader is a quant strategy-based DIY (do-it-yourself) investment tool, helping an investor make returns up to 25-30 per cent, he said.
Its AI-driven solutions offer fully automated trading advices, which are continuously built, all-weather and multi-strategies based quantitative strategies, he explained.
Rain Trader brings investors, brokers, trading strategy developers (quants) and advisors together on a single platform to make trading profitable and hassle-free. It not only secures higher yields for investors but also gives a marketplace to quant developers to showcase and deploy their strategies.
On the revenue side, Kumar said it can either be subscription-based or an upfront fee that can be a low 1 per cent of the volume, or even it can be priced on a pay-as-you-use model.
He said already six quant traders are working for them and planning to employ six more of them, who will work on a commission basis as their strategies are not exclusive on our platform.
Raghu Kumar and Harsh Agarwal, an ace hedge fund manager, had co-founded Rain Technologies in 2018. Kumar also holds a considerable stake in Upstox, which disrupted the traditional brokerage space and became the second-largest stock brokerage in a short span.
They are trying to do an encore of the Upstox success with Rain Trader now by disrupting the algorithmic trading markets. With its strategies an investor can trade across financial markets and asset classes by seamlessly subscribing to high quality fully automated investment and trading strategies, which once subscribed to, automatically start firing trades on the user’s account from the very next day, he said.
