Forex Brokers Can Adapt Their Brokerage Models to Meet Evolving Investor Demands

Regardless of how long one has been in forex trading it is always significant to note that this market is dynamic and it keeps changing due to technological advancement, changes in the market, and the outlook of investors in this market. Over time traders have become more knowledgeable and hence their expectations change and as a result the business models of the forex brokers evolve too. It is necessary to report that the contemporary demands for investors mean that flexibility, innovation, and a great vision of what is interesting to today’s traders have to be met.

Among all new trends that have started to emerge recently, one of the largest has been the increased participation of the retail investors in the forex market. Whereas dominated by institutional entities, today’s forex environment is featuring growing involvement of retail players who approach the marketplace with different sets of objectives. In particular, these retail investors are demanding more and better technological enabled applications that are easy to use, efficient and provide analytical capabilities. This will likely capture the attention of an increasing trading audience with brokers that can offer such features.

Forex-Trader

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To satisfy these demands, brokers are not exempt from the need to invest in technology. Ideally, a modern trading platform should provide not only usability but, first of all, a very high operating efficiency. A lot of traders and investors would consider real-time data feed, custom charting and algorithmic trading capabilities as critical today. Another area of self-service trading is mobile trading. Given the fact that more traders participate in the mobile platform, brokers who offer optimized, efficient and reliable mobile apps will always attract traders who need to manage their accounts from their mobile devices at any time. Whether trades are made during business hours or during a commute, the ability to control trades with an iPhone, iPad, Blackberry or Android is becoming standard.

The third determinative factor is customer support. The current shareholders require customer-friendly service that can reply promptly to their questions. When brokers can have means of providing support 24/7 for whatever problem their clients may have and through different platforms including live chat, email or phone, then brokers are sure to gain the trust of the clients they serve. As well, providing education material is becoming one of the strategic factors for the companies in the industry. It means that the majority of retail dollars are still ‘wet behind the ears’ to use forex trading services, so if you want to build a customer base, you should provide your clients with basic educational material, webinars, and personal consultations. In addition to explaining the market to traders, brokers also make sure that their clients are likely to succeed hence giving them a lifetime business with brokers.

The investors doing business in the current world are also becoming aware of the ethical and the environmental consequences of their trades. As the topic of sustainable investing is being actively discussed today, and the pursuit of socially responsible business is gaining popularity, brokers need to answer whether they will be able to meet these trends. Being able to offer certain products and services that are earth friendly trading or giving something back to a certain charity can be an effective way of drawing in a more responsible type of investors. This change is not just about ethics but more about being relevant to the set new beliefs concerning investors of the current world.

Last but not least, brokers also bear the task of satisfying the need for open and clear information. Consumers wish to have confidence in the safety of their money, confirm the price integrity and ensure they are not charged any other concealed charges. Since trading in currencies involves substantial risks, the forex broker must be very open and transparent regarding the spread and commission charged. In the future, more and more operations of brokers will be very similar, and there will be an increasing number of fees or charges that cannot be clearly explained; so brokers that operate with clear and specific terms and conditions will have greater competitive advantage in the future.

To cater to the new needs of investors, it is not a mere process of developing or adding new related tools or functions. It is the evolution of the investor’s way of thinking and adapting the brokerage model to the new development. There are benefits that can come from embracing novelty in technology, customer relations, education in the field, environmentalism and reporting, for a forex broker to serve as a beacon for the rapidly evolving market. The new traders will expect much, and brokers who will be able to deliver much more than the expected will be the one to succeed.

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Eddie

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Eddie is Tech blogger. He contributes to the Apps, Games and Reviews section on TeenDroid.

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