GBE Brokers, a retail broker regulated in Cyprus, has launched a new brand.
Called discountFX, the company is offering a rather unique, streamlined brokerage service.
discountFX’s website indicates that its fees will be $1.99 per round turn lot. Unlike some other firms, the brokerage has a minimum deposit of $500.
Like most other retail brokers, the firm is offering trading through the MetaTrader 4 trading platform.
The new brand has been designed with minimal setup. That means no call centers, no expensive offices, and a small operations team.
“We saw a gap in the market for a simple brokerage where people can just trade,” said Rifat Sayim, GBE Brokers’ chief executive officer. “So all of the fees, terms of service and products we’re offering, everything is laid out very clearly in one page.”
The purpose of this, it seems, is to offer a cheaper service – including zero spreads in some instances – to its client base.
World's Biggest Vessel Opens Gates for 2019 Coinsbank Blockchain CruiseGo to article >>
And Sayim appears to be hoping that the client base for his firm’s new brand will be made up of experienced traders.
“We want people who know what they are doing,” Sayim told Finance Magnates. “People that understand forex and CFDs and who
just want to trade. By reducing office, marketing and support costs we can also offer these people a better, cheaper trading experience.”
With many brokers attempting to gear their services towards professional clients in the wake of the European Securities and Markets Authority’s product intervention measures, discountFX is a new effort at dealing with the market conditions those regulations have created.
A small set of operations and a simple website could mean the broker has found a way of reducing its own costs and attracting many retail traders who fit in something of a grey area.
Not fit to meet ESMA’s professional reclassification requirements, they nonetheless understand what they are doing and have more sophisticated demands than a novice trader.
discountFX could appeal to these people and, if it does, GBE Brokers may have found a neat way of dealing with tough market conditions.