Boosting Profits in Low FX Volatility
- Offering a range of asset classes gives you the opportunity to engage new audiences for new clients.
Most brokers are passively waiting for the low volatility in 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 to go away. You should not fall into that trap. The Deutsche Bank FX Volatility Index is on course to record a 5-year low.
What this means is that for the past 2 years or so volatility on foreign exchange pairs has been recording lower lows and is now in the same area it was in the middle of 2014. The graph below describes the situation perfectly.
We expect this to be something you already know, intuitively or otherwise. We also expect you to know how low volatility is bad for acquisition of new clients, new deposits, and profits. We are here to discuss what you can do about it.
Forex alone is not enough
Yes, this industry has been built around forex, however as the graph above shows, except for some periods, the volatility in that particular asset class has been disappearing for quite some time.
We are not here to discuss whether this will remain the case for the next 1 or 5 or 10 years. We are here to make sure you are around in 1, 5 and 10 years to see for yourself.
A broker needs every asset class available. A broker needs true multi-asset bridge that can work with everything from cryptos to individual stocks to ETFs and Commodities.
Offering all these asset classes and their individual instruments under them gives you the opportunity to engage new audiences for new clients. It also gives you the opportunity to reengage dormant clients and keep the ones trading, trading.
In being honest though, volatility is not exactly rising in the other asset classes either. Therefore, having more assets for your clients to trade, for your marketing team to market is still a necessity, yet it is not enough.
Multi-asset is not enough
Moving ahead, beyond the trading instruments available, you need the right tools for your employees and for your clients.
First thing first, for your clients, a great trading platform. A platform with all the bells and whistles that requires no download, it is light and works around the word in multiple languages.
Then, for your sales and marketing teams, a great CRM to manage all their leads and their clients efficiently and effectively. A CRM that allows you to easily create and manage multiple brands if you have more than one.
If you are also looking to even further engage your clients and increase your trading volumes, you could consider a social sharing feature. Boost your volumes and customer engagement with our social trading and MAM offering.
And since we are talking about profits, for your dealing desk or Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term team, a risk management system to help you increase your collection.
Keeping costs low
Finally, and most importantly, in a period that may last long or not, a period of low volatility is it vital to do all the above in an economical way.
We are not proposing to work with anyone that says they can do the cheapest for you. There is a reason they are cheap.
We are proposing to work with the XValley Technologies team that has created these components that worked as a full package or as mix-n-match components efficiently with the latest technology that allows you to only incur the costs you need and the costs your business model requires.
Visit us at the iFX EXPO this May, at our booth #149 or contact us today to discuss how we can help.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.
Most brokers are passively waiting for the low volatility in 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 to go away. You should not fall into that trap. The Deutsche Bank FX Volatility Index is on course to record a 5-year low.
What this means is that for the past 2 years or so volatility on foreign exchange pairs has been recording lower lows and is now in the same area it was in the middle of 2014. The graph below describes the situation perfectly.
We expect this to be something you already know, intuitively or otherwise. We also expect you to know how low volatility is bad for acquisition of new clients, new deposits, and profits. We are here to discuss what you can do about it.
Forex alone is not enough
Yes, this industry has been built around forex, however as the graph above shows, except for some periods, the volatility in that particular asset class has been disappearing for quite some time.
We are not here to discuss whether this will remain the case for the next 1 or 5 or 10 years. We are here to make sure you are around in 1, 5 and 10 years to see for yourself.
A broker needs every asset class available. A broker needs true multi-asset bridge that can work with everything from cryptos to individual stocks to ETFs and Commodities.
Offering all these asset classes and their individual instruments under them gives you the opportunity to engage new audiences for new clients. It also gives you the opportunity to reengage dormant clients and keep the ones trading, trading.
In being honest though, volatility is not exactly rising in the other asset classes either. Therefore, having more assets for your clients to trade, for your marketing team to market is still a necessity, yet it is not enough.
Multi-asset is not enough
Moving ahead, beyond the trading instruments available, you need the right tools for your employees and for your clients.
First thing first, for your clients, a great trading platform. A platform with all the bells and whistles that requires no download, it is light and works around the word in multiple languages.
Then, for your sales and marketing teams, a great CRM to manage all their leads and their clients efficiently and effectively. A CRM that allows you to easily create and manage multiple brands if you have more than one.
If you are also looking to even further engage your clients and increase your trading volumes, you could consider a social sharing feature. Boost your volumes and customer engagement with our social trading and MAM offering.
And since we are talking about profits, for your dealing desk or Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term team, a risk management system to help you increase your collection.
Keeping costs low
Finally, and most importantly, in a period that may last long or not, a period of low volatility is it vital to do all the above in an economical way.
We are not proposing to work with anyone that says they can do the cheapest for you. There is a reason they are cheap.
We are proposing to work with the XValley Technologies team that has created these components that worked as a full package or as mix-n-match components efficiently with the latest technology that allows you to only incur the costs you need and the costs your business model requires.
Visit us at the iFX EXPO this May, at our booth #149 or contact us today to discuss how we can help.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.