It’s been only about two weeks since EU authorities have imposed the new regulatory restrictions on advertising of forex and CFDs products across the continent. While brokers are yet to feel the full impact from the new regulations, several new conditions are prompting drastic changes across the industry.
The month of August of 2018 is likely to be a paradigm shift in the operating and business model for retail brokers for many years to come. Some doomsayers have been predicting the end of the industry as we know it. To a certain extent that is correct – the industry will adapt and will no longer be “as we know it”.
Adapting is what long-term oriented survivors do and operational and business changes are the engines driving innovation in pretty much every sector of the economy. Today brokers need to come up with new ways to keep clients engaged and adopt new technologies to show their customers how much they care about their interests.
Marketing a Transparent Product
Years of malpractice in the industry, caused reputation damage which ultimately forced the hands of the regulators in the EU and globally. While the steps undertaken by regulators are fixing some issues, it is up to the brokers to adopt policies that provide the radical transparency which is in growing demand globally.
Marketing a product which is in full alignment with the interest of the end-client is currently a gap in the market. There are very few firms which are focused on the development of a sustainable approach in this respect and in this article we will focus on one of them: Non-Zero.
Non-Zero has made a big leap in terms of looking after the interests of the brokerage industry as a whole. The company is providing a product which enables brokers to share revenue with their clients in a fully transparent way. The firm has harnessed the benefits of blockchain technology to create a platform which is open to brokerages and is designed to ensure that their clients can benefit from a new level of alignment of interest between brokers and their retail customers.
Non-Zero Opening the Doors to an Era of Transformation
Non-Zero’s platform is designed to push the retail foreign exchange and CFDs industry into serving the interests of its clients. Brokers which have been operating their business based on models that make their clients’ losses into revenue for the house get a brand new marketing channel to attract new customers.
After a broker books the losses of a client as revenue, it can then redistribute the income back to the customer in the form of a brand new token. That in turn can be exchanged for fiat or used by the client as payment for services. Depending on the broker, the Non-Zero token can be used as collateral, for commissions transactions or for purchasing certain products which are participating in a well-integrated ecosystem of service providers.
Visualizing the broker’s flow is a challenge and Non-Zero is leveraging blockchain technology in order to ensure that clients can adequately track the redistribution of tokens back to them. The company has also committed to listing the token on several exchanges and its utility for brokers and end-users alike is to support the future value of the ecosystem.
Quick deposit losses by foreign exchange and CFDs traders can be disheartening. In order to reinvent the business model for the brokerage industry Non-Zero is employing both advanced technology and creative marketing. When a client is presented with an incentive that ensures that his/her broker is playing the game fairly, such incentives can net the difference between regular deposits and a one-off commitment for a short period of time.
The growth of the ecosystem of Non-Zero over time is likely to deliver a massive incentive for both brokers and their clients to keep or use their tokens. These days blockchain technologies are changing at lightning fast speed and the adoption of this new generation of products is just starting.
With its current market capitalization of $215 billion, the cryptocurrency market place is a testament to the potential of blockchain. Non-Zero’s platform is not depending on the value of cryptocurrencies, the only thing that creates value for the end-users is ultimately the creative talent behind the project.
With a team of valuable experts which is highly experienced and committed to revolutionizing the business model of retail brokers, the potential success of this company is of paradigm importance for the industry as a whole.