In an exclusive interview with David Kimberley from TradeInformer, Illimar Mattus, the founder of The Trading Pit, came from a small Estonian village to become a significant figure in the global financial industry. Here’s a deep dive into their conversation.
Early Beginnings: Inspired by Wall Street
Illimar Mattus’s journey into the finance world began over 25 years ago during his high school days. A pivotal moment was watching the movie Wall Street. Captivated by the bustling scenes of trading floors and the world of finance, he decided to pursue a career in this field.
"I was 15, and seeing Gordon Gekko and Michael Douglas in that big room with flashy ticker tapes and ringing phones was mesmerising. It was so different from my small village in Estonia," Illimar recalls. Determined to enter this world, he studied finance rigorously, reading economics and financial analysis books while his peers enjoyed their leisure time.
Founding Tickmill
Illimar’s dedication paid off. After high school, he began working in a private equity firm, gaining valuable experience. Together with his brother, they started trading. By 2010, after a decade of trading, they decided to switch from trading to brokerage, leading to the birth of Tickmill.
"Having been clients of the largest brokers globally, we understood the business well. We saw an opportunity to create something better, and that's how Tickmill started," says Illimar.
Estonia: A Hotspot for FinTech Innovation
Despite its small size, David Kimberley highlighted Estonia's impressive contribution to the tech world. Illimar attributes this to Estonia's rapid technological advancement following the collapse of the Soviet Union.
"With help from our neighbours, Sweden and Finland, we embraced new technologies. Our banks and systems were built from scratch with state-of-the-art technology, giving us an edge. This early access helped nurture a tech-savvy younger generation," Illimar explains.
Investment Strategy with Pinorena Capital
Illimar is also the force behind Pinorena Capital, his family office for investing in financial technology companies. They focus on a broad spectrum, from brokers and banks to insurance companies.
"We look for companies that can significantly improve their services with technology. Our investments range from early-stage startups to established companies, with allocations ranging from a quarter million to 15 million per company," Illimar shares.
Balancing Multiple Ventures
Running multiple ventures is no easy feat. Illimar’s approach is to delegate effectively and trust capable individuals to manage different aspects of the business.
"Initially, I was very hands-on, even answering live chats myself. As the business grew, I learned to delegate and focus on key performance indicators (KPIs) and high-level decisions," he explains.
The Trading Pit: Empowering Traders
The Trading Pit is Illimar’s initiative to help talented traders. By evaluating traders' strategies through challenges, The Trading Pit identifies top performers and invests in their strategy.
"We provide traders with a platform to showcase their skills, and if they perform well, we invest in their strategies and skills. Risk management is crucial here, and we select the best trades to scale appropriately," Illimar says.
Managing Risk and Ensuring Success
Risk management is a critical component of The Trading Pit's operation. Traders always use demo accounts, and the risk team selectively picks the best trades from top performers.
"It’s challenging but essential. We ensure traders are gradually scaled to handle larger exposures responsibly," Illimar states. This meticulous approach helps maintain the integrity and success of their investment strategies.
The Future of Trading: Embracing Regulation and Innovation
The trading industry is evolving rapidly, with regulation on the horizon. Illimar anticipates significant industry consolidation, with a few dominant firms leading the market. However, The Trading Pit stands out with its strong brokerage and risk management background, offering reliability and transparency.
"We expect regulation within the next two years, leading to consolidation. We differentiate ourselves by offering real futures and maintaining a strong reputation," Illimar predicts.
Watch the Interview
Please watch the video below for those who prefer to watch the full interview. In this video, Illimar Mattus shares his journey, insights, and plans for The Trading Pit.
Conclusion
Illimar Mattus’s journey from a small Estonian village to leading significant financial ventures like The Trading Pit is a testament to his dedication and vision. His ability to balance multiple ventures while focusing on innovation and risk management sets a strong example in the financial industry. As he continues to drive these ventures forward, the future looks promising for Illimar and his contributions to finance.
