There aren’t many industries out there that have experienced as much change as the online trading industry for retail clients. We believe this has happened in three phases and that we have entered the third phase.
Brokers are facing challenges from every front with costs rising to a level that forces them to think laterally. Online brokerages are now realising that the industry is entering a third phase where a dedicated in-house IT department is a waste of time and comes at a prohibiting cost.
Increased competition has driven every cost of operating an online brokerage through the roof. Recruitment, salaries, new roles, cost per acquisition, regulatory requirements, development, technology infrastructure and commissions paid have exploded in the past few years.
The math is calling for a change in the industry structure
In the first phase of the online trading expanding business, credit card and online payments were the catalyst. Brokers developed almost everything in-house in this phase.
In the second phase, penetration in non-traditional regions through offline channels drove the expansion wave. In this phase, existing and new brokers gave up the uneconomical cost and headache of developing and maintaining their own platform to third-party platform developers.
We have entered the third phase. As brokers gave up some control and some uniqueness in offering their own platform in the second phase, it is now time to give up something even more uneconomical, even more unbearably costly. The third phase demands brokers, new and existing, to get rid of their IT department.
Getting rid of your IT department
You are probably wondering how can this be possible. The answer is through a vendor that has developed every single component an online brokerage needs. We at XValley Tech are this vendor.
We are talking about a full broker suite
- An order execution management system, the bridge
- A pricing engine able to create aggregate feeds from multiple providers
- A trading platform available as a webtrader and through native mobile apps
- A back office with its own CRM and affiliate system
- A risk management system with all the reports you need
- An ecosystem integrated with
- numerous payment service providers
- regulatory reporting providers
- exchanges and liquidity providers
- A fully featured member area
- Live support where the broker can initiate the chat
- Social trading, managed accounts and portfolio management.
If you think there is anything else you need, feel free to let us know.
Take a moment to calculate how much your IT department costs you
An IT department needs expensive IT professionals. Those IT professionals need expensive office space to work in. The office space needs to be furnished and the IT professionals need hardware and software to work on. Technology infrastructure needs to be bought and relationships have to be maintained. Do the maths.
Now, think of the different third-party relationships you are paying for to have an affiliate system, a risk management system, a CRM and a bridge.
You are now probably wondering if all the components we listed above come in an indeed price-shattering, cost-saving package. The answer is yes. Massively. If you did the maths you already know, our proposition is starting to make sense. The way the full suite has been designed is with every component complementing each other. This has been economical in developing the components and it remains economical to maintain and further develop.
Work with us, save hundreds of thousands
All of us at XValley, are proud to have built a product that is capable of replacing an entire IT department for every single company. We are asking you to work with us and solve your IT headaches. We are asking you to save tens or hundreds of thousands and focus on what matters most for online brokerages, which is getting clients in.
We understand you are sceptical. We know the business we are in. It’s time to change and adapt. Visit us in iFXExpo Hong Kong 2019 booth 127 or online at http://xvalley.tech/ and let’s start talking.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.