Becoming more competitive giving Retail FX brokerages the right tools for the job Retail FX brokerages now have to keep up with both increasing operational demands and external market forces in this highly active market. As the Retail FX brokerage industry becomes progressively more competitive, Heather McLean explores what mission critical technology and business services are now required to meet all of these challenges and how can these services can be leveraged by brokers to reduce risk, maintain their competitive offerings and grow their market share.
hen assessing the main operational demands that FX brokers now face in the ultra competitive retail FX industry, Brandon Russell, president, sales and operation (Americas) at Fair Trading Technology, says that over the past few years his company has seen a tightening regulatory environment 126 | january 2013
and greater focus on the interest of the retail trader specifically, as it relates to client retention. “FX Brokers are realising that customer churn and profitability (or lack thereof,) is an anathema to their business in this new environment. This has led to brokers being quicker to adapt and enhance their offerings to retain customers as well as manage the cost of client retention,” said Russell. He continues: “Brokers have to adapt to the demands of the market as it adopts various avenues to remain profitable. Social trading, mobile trading and algorithmic trading (EA’s) are some of the avenues that have pushed brokers to increase and adapt their service offering to keep up with the demands of the retail market growing up. Retail money is no longer the ‘dumb money’.” Competitive
Tom Higgins, CEO at Gold-i, states that in order to be truly competitive, FX brokers now need to offer institutional-quality trading to their retail clients
Published on Jan 30, 2013
Retail FX brokerages now have to keep up with both increasing operational demands and external market forces in this highly active market....