It used to be that you could only be either a forex 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 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
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- 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.