Zak Westphal brings over a decade’s firsthand experience as an entrepreneur working to open up quantitative trading strategies and tools for the average investor.
As founder and CEO of StocksToTrade, he’s helped empower over 30,000 retail traders to punch above their weight using the same institutional-grade analytics and algorithms previously locked away for Wall Street’s eyes only.
A true believer in leveling the playing field, Westphal sees a whole world of potential for technology to help everyday people access the advanced trading intel once reserved for hedge fund heavyweights.
In his mind, financial innovation shouldn’t just be for the rich to get richer – it can and should provide regular investors the keys to unlock success. That’s why his vision is all about making algorithmic trading less complex and more approachable. He takes the hood off the trading machine so that more people can use their knowledge and skills (not just their bank accounts) to tap into money-making opportunities in the market.
Current Barriers to Entry in Finance
For far too long, profitable trading strategies have been guarded behind lock and key by wealthy institutions.
“Between the exclusive clubs and invite-only funds, new investors face a maze of barriers to access the same opportunities available to Wall Street titans,” notes Westphal.
Retail traders must pay exorbitant fees just to access advanced analytics platforms and data tools that come standard for Wall Street firms.
Moreover, they lack connections for tapping insider networks circulating privileged market intel. And layers of complex industry jargon create asymmetry where institutional players benefit from far superior information and analytical capabilities.
For those outside the millionaire’s club, profitable trading remains out of reach when the decks are so clearly stacked against them from the start. But Westphal sees immense potential for increased innovation and regulation to tear down existing gateways, paving the way for fair participation for determined retail investors willing to hone their skills over time.
How Fintech is Lowering Barriers
While barriers have long suppressed profitable retail trading, Westphal sees immense promise in financial technology innovations tearing down outdated gateways. New platforms and tools bring advanced capabilities once exclusive to institutional desks directly to ordinary investors.
“The era of profitable algorithmic trading being solely the playground of hedge fund PhDs is coming to an end,” notes Westphal.
Commission-Free Trading Apps
A huge obstacle that has been eliminated is the exorbitant commissions and fees charged for executing trades. The rise of user-friendly apps enabling cheap (and sometimes free) stock options/crypto trading has granted easy market access without the huge tolls that would quickly erode small accounts.
“Traders can now dedicate more capital to thoughtful trades rather than bleeding away profits in fees,” Westphal explains. This shift challenges assumptions that profitable strategies demand abundant capital.
Automated Advisors and Algorithms
Sophisticated algorithms were once the exclusive domain of quantitative hedge funds. But automated advisors like IRIS now distill complex analytical assessments into straightforward ideas retail traders can evaluate and execute.
Proprietary scanning tools filter endless stocks to identify advantageous setups aligned with customized trading goals. Such technologies simplify execution so traders can focus more on strategy.
As Westphal notes, “Through StocksToTrade, we hand the keys to institutional-grade technologies directly to our retail traders. This levels the playing field and empowers traders of all skill levels to compete with the big players in the market.”
Educational Resources & Communities
Transitioning from manual trading to algorithms has a learning curve, but there are now a ton of emerging education resources to help show new traders the ropes. From structured online courses breaking down advanced methodologies to active communities where people exchange ideas, determined learners have avenues to soak up the skills needed to trade on more equal footing with the big institutional players.
As Westphal puts it, “We’re seeing education, not capital, become the real key differentiator now. Knowledge, rather than money, has become the main barrier traders face for entry into markets.”
“That’s why we offer a range of free courses for StocksToTrade users of all levels. Because with any powerful tool or platform—if you don’t truly know how to use it, it won’t bring much value. In fact, it can actually do more harm than good if people apply it irresponsibly without the proper knowledge.”
Risks and Responsibilities
While Westphal is excited about increasing access, he recognizes the need to prevent potential downsides. As he cautions, “If market giants aggressively profit off everyday investors without accountability, it could hurt long-term faith in fair markets.”
Preventing Exploitation from Unchecked AI
As algorithms become exponentially more complex incredibly quickly, their inner workings get harder to understand. This lack of visibility poses dangers, notes Westphal. He sees the imperative of “banning black box systems that could secretly manipulate unwitting traders.” Maintaining some transparency – even a simplified version – ensures average investors can make informed choices about tools rather than blindly follow recommendations.
Maintaining Transparency and Oversight
Transparency enables effective oversight against concerning scenarios like platforms selling client order information to benefit institutional players. As Westphal urges, “We must demand rigorous audits that trace the path of retail orders through any hands that touch them.” Without visibility into potential conflicts of interest that discreetly disadvantage individuals, distrust can corrode market integrity.
Promoting Ethical Practices
Westphal believes “all market participants privileged to participate owe responsibilities back to those markets.” This includes not just monitoring risks but also nurturing sustainable development through investor education and smart regulation that promotes stability. Market leaders must act as stewards – working to expand access and financial literacy rather than purely pursuing personal profits.
Future Outlook
Zak feels both hopeful yet cautious excitement about the growing democratization of technology – thrilled by the empowering potential but wary of risks if powerful tools are misused. As he says, “Progress means balancing innovation and ethics carefully – and we all play a role in finding that balance.”
For now, Westphal keeps chipping away at obstacles that have long held regular traders back from succeeding, by providing open access to quantitative strategies, tools and lessons usually reserved for big banks.
This pioneering tech leader stays focused on boosting trader knowledge and financial literacy above all else – not just chasing profits. Above all, he firmly believes markets thrive when more informed individuals participate responsibly – and he sees huge potential if innovators find newer ways to bring institutional-level systems to investors based on skills instead of pre-existing wealth alone.
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