Financial services firm Scottrade, Inc. has partnered with the Hawaii-based Contix, the social media event detection platform, to provide its clients with real-time breaking news alerts on its flagship ScottradeELITE platform.
The cloud-based software developed by Contix surfaces specialized news for traders and investors by monitoring and analyzing more than 500 million social and traditional media posts per day. The solution pushes real-time alerts on breaking news events relevant to financial markets before other news sources.
With more and more news breaking on social media, Scottrade clients can now make more timely and informed trading decisions using these specialized social alerts.
Scottrade has a long history as a brokerage and currently offers four key lines of business, including investment management, trading, banking and custodial and institutional services. Scottrade Inc is the brokerage part of the business that focuses on clients’ needs for trading and investing through a trading platform called ScottradeELITE.
The new tool will be offered for free within the ScottradeELITE platform, but this is for only two weeks. Clients who wish to subscribe after the trial period will receive a discounted rate from Contix and 20 free trades from Scottrade. Contix charges a flat fee of $60 per month for use of its service.
Social Media Intelligence
Contix’s proprietary technology clusters related news from social and traditional sources and places that news in context with market and social data including price, trading volume, discussion volume and sentiment.
While monitoring social media intelligence has become increasingly important in recent years, it is also vulnerable to rumors, hoaxes and frauds aimed at manipulating prices. However, the company uses a variety of proprietary algorithms to ensure pushing out credible and actionable alerts only.
The term of ‘social media intelligence’ refers to the act of gathering information from social media sites which allows market participants to monitor and respond to social signals into meaningful trends.
Commenting on the news, Brian Bachelier, Scottrade vice president of active trader strategy, said: “We’re always looking for additional innovative and valuable tools that can help our clients. By making Contix alerts available within ScottradeELITE, we’re placing a powerful tool in the hands of our traders at a time when news is increasingly breaking on social media channels. Our clients demand the most sophisticated technology and analysis on the market.”