When forex traders realize losses and gains We thoroughly believe that the better you understand your clients, the more your business will grow. When you understand your clients, you’re better able to give them what they want. In previous posts, we’ve covered general statistics about retail forex traders, how wins and losses affect those traders, and reasons that they quit trading. Today, we’re bringing you stats from Retail investors’ trading behavior in foreign exchange markets. This article uses trading data from Oanda for 14 currency pairs during the period of… read more →
How to get an FSCA license for your firm As forex regulations in Europe have tightened, many brokers have started moving their firms to countries outside the EU or setting up divisions of their brokerages in non-European countries. Although island nations in the Pacific and the Caribbean get a lot of attention when it comes to moving offshore, South Africa is quickly becoming a popular choice for both existing brokers and new brokers. The restrictions on leverage and bonuses have made it difficult for many firms to attract new clients.… read more →
Do forex traders care about spread costs? The cost of complying with regulations or moving off-shore continue to shrink profit margins for retail forex brokers. Spread markups are one of the ways that your firm may make a profit from offering services to traders. Low spread markups may be a way to attract new clients, but reducing spreads also reduces your profits. We’ve looked at research on forex traders in several recent posts, and in this week’s post we’re sharing info about how aware traders are of the costs of… read more →
What you need to scale your FX brokerage To continue to increase your profits, you need to grow your forex brokerage. Because financial markets and regulations change quickly, brokerage growth can be unpredictable. You need to be ready to move into new markets and take on additional clients quickly, and having a scalable forex brokerage means you’ll be ready to grow when new opportunities present themselves. So what do you need to be scalable? The right tools. There are four features to look for when choosing software for your FX… read more →
What you need to know to succeed Many forex brokerages fail within the first few years of business. It’s often difficult for new brokers to find and keep enough clients to remain profitable. To recruit and retain clients, brokers need to operate with maximum efficiency and stellar customer service. There are many reasons that brokerages become inefficient or provide sub-par service. However, we continually hear about a few problems that make a big difference in a new forex broker’s failure. Here are the top 5 reasons we’ve seen brokerages fail.… read more →