Bforex Holding Group, the operator of the Bforex, FXGM and numerous other forex brokerage brands, has become the latest firm to introduce its technology division, TradeNetworks, as an independent unit. As the technology division for Bforex Holding, Tradenetworks was responsible for the creation of the firm’s end to end proprietary products which included CRM, the PROfit forex and CFD trading platform, as well as website development. With the operational changes, TradeNetworks will now begin to offer turnkey brokerage solutions to brokers and partners beyond the Bforex group.
For firms with proprietary technology, spinning of their technology unit as standalone companies is a method to access alternative revenue streams. When operated correctly, the technology unit can leverage existing resources that are used for the parent company to service other firms. Recent examples include XTB and FXDD launching XFSol and ForexWare respectively.
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While such technology divisions can bring experience and existing examples of brokers using their systems, winning new customers isn’t always easy. A chief concern is just how independent these firms are. As opposed to partnering with a firm like Leverate or Boston Technologies who don’t compete head to head with brokers on the retail space, spun out technology divisions, there is always a worry that they will share customer information with the sister brokerage firm. On this point, Stelios Eleftheriou, Head of Business Development told Forex Magnates that “TradeNetworks is a separate company, representing the technology wing of our group. Likewise, all Bforex retails forex broker brands are segregated from each other so data is not being shared among the various brands.”
In terms of competing solutions, TradeNetworks brings to the table experience of creating products to handle multiple brands that market in a diverse set of languages in countries around the world. TradeNetwork services begin with basic solutions for IBs up to full service branded white label technology packages, that include access to liquidity, B-Booking options, payment integration, CRM, risk management software, and multi-environment trading platforms. When asked what the firm’s unique selling point is, Eleftheriou summed it up by saying “Our unique selling feature is that we offer everything under one package including, turnkey forex broker website, 24 hour support for partner’s employees and clients, payment solutions and more.” Having taken a look at costs, TradeNetworks is similar to competing products and charges per volume commissions as well as up-front charges for some of its services.
Overall, the jury is still out on the value of technology spin-offs and their role in the industry as independent providers. What is a known, is that similar to other online businesses, demand for end to end turnkey solutions with the forex sector remains solid. Specifically, for online professionals with existing client lists and marketing channels, turnkey brokerage products offer an efficient model to monetization in the forex industry. As a result, while TradeNetworks becomes the newest broker technology provider hitting the market, we don’t expect it to be the last.