Having Your Cake and Eating It Too
- Crossing over from FX to binary and vice versa is an increasingly viable option for brokers thanks to converging technologies.
It used to be that you could only be either a Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker or a binary options broker, but with the wide range of technology offerings currently on the market, there is no reason why a broker can’t have his cake and eat it too.
how can a broker move forward and combine the two industries to increase their ROI and bottom line?
For some time now, brokers have been looking for ways to expand their portfolios and venture into a new industry, crossing the line from FX to binary options and vice versa. It made sense that established brokers in one industry or the other would take advantage of their existing database, marketing efforts, call center, understanding of the market and knowledge of the industry to increase their ROI and improve their bottom line.
Today, with converging technology, the Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term between forex and binary options is narrower than ever and with the right strategy, a broker can harness the ease of conversion that binary brings together with the powerful retention of forex, to produce a superbly profitable business model.
What are the benefits of crossing over?
Benefits of Crossing from FX to Binary Options
- Conversion: conversion in forex is much harder than with binary. For a trader, the concept of gaming is much easier to grasp than having to read a chart. Adding a binary system can contribute to an easier and less expensive conversion process. Once a client has been converted, the retention team can shift their interest towards forex to take advantage of the higher deposit potential in forex investments.
- Simplicity: binary systems are much simpler to operate than forex ones. Binary trading is as easy as clicking on a green or a red button, much like choosing a number on a roulette wheel.
- Cost: binary options conversion process is much less expensive than that of FX
Benefits of Crossing from Binary Options to FX
- Investment: first investments in binary options are traditionally small. By crossing over to FX, a broker can entice clients to make larger deposits.
- Prestige: gaming may be perceived as less prestigious than investing and binary options may be losing clients who understand the disadvantages of gambling. By crossing over to FX, these clients can be attracted as well.
- Retention: FX investments may triple the lifetime value of a client, increase deposits, retention and ultimately, the broker’s P&L.
Benefiting from this crossover is not limited to existing brokerages, however. A start-up brokerage can establish a business model in which it combines the benefits of forex and binary options from the get go.
Now that these two industries are intersecting more and more, and the tools to support this convergence is available, how can a broker move forward and combine the two industries to increase their ROI and bottom line?
Utilizing the same database of clients, a broker can simply implement a system that has the ability to serve both industries with one platform that is easily switchable back and forth from binary options to FX. The right technology should allow for one wallet, one CRM that is fully automated providing full control over notifications, one web access and one mobile access. Furthermore, a platform should bring together the strengths and tools of each industry and apply them to the other, such as binary options offering candlestick charts, or FX offering one-click actions.
It used to be that you could only be either a Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker or a binary options broker, but with the wide range of technology offerings currently on the market, there is no reason why a broker can’t have his cake and eat it too.
how can a broker move forward and combine the two industries to increase their ROI and bottom line?
For some time now, brokers have been looking for ways to expand their portfolios and venture into a new industry, crossing the line from FX to binary options and vice versa. It made sense that established brokers in one industry or the other would take advantage of their existing database, marketing efforts, call center, understanding of the market and knowledge of the industry to increase their ROI and improve their bottom line.
Today, with converging technology, the Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term between forex and binary options is narrower than ever and with the right strategy, a broker can harness the ease of conversion that binary brings together with the powerful retention of forex, to produce a superbly profitable business model.
What are the benefits of crossing over?
Benefits of Crossing from FX to Binary Options
- Conversion: conversion in forex is much harder than with binary. For a trader, the concept of gaming is much easier to grasp than having to read a chart. Adding a binary system can contribute to an easier and less expensive conversion process. Once a client has been converted, the retention team can shift their interest towards forex to take advantage of the higher deposit potential in forex investments.
- Simplicity: binary systems are much simpler to operate than forex ones. Binary trading is as easy as clicking on a green or a red button, much like choosing a number on a roulette wheel.
- Cost: binary options conversion process is much less expensive than that of FX
Benefits of Crossing from Binary Options to FX
- Investment: first investments in binary options are traditionally small. By crossing over to FX, a broker can entice clients to make larger deposits.
- Prestige: gaming may be perceived as less prestigious than investing and binary options may be losing clients who understand the disadvantages of gambling. By crossing over to FX, these clients can be attracted as well.
- Retention: FX investments may triple the lifetime value of a client, increase deposits, retention and ultimately, the broker’s P&L.
Benefiting from this crossover is not limited to existing brokerages, however. A start-up brokerage can establish a business model in which it combines the benefits of forex and binary options from the get go.
Now that these two industries are intersecting more and more, and the tools to support this convergence is available, how can a broker move forward and combine the two industries to increase their ROI and bottom line?
Utilizing the same database of clients, a broker can simply implement a system that has the ability to serve both industries with one platform that is easily switchable back and forth from binary options to FX. The right technology should allow for one wallet, one CRM that is fully automated providing full control over notifications, one web access and one mobile access. Furthermore, a platform should bring together the strengths and tools of each industry and apply them to the other, such as binary options offering candlestick charts, or FX offering one-click actions.