Growth
Where is growth happening across our client firms?
Trends
Commission Free / Choice or Raw Spreads
It has started in Equities and resulted in huge growth. Commission free trading popularised by RobinHood has created legions of traders who have known nothing else but commission free.
Elsewhere in FinTech companies (& Neobanks) like Revolut attracted so many users via the attraction of free world-wide inter-currency transfers with zero fee.
Brokers are facing ever increasing expectations from consumers on providing tight spreads or commission free trading.
As consumers look to diversify their trading they may be put off by large execution costs.
Learn more about choice spreads
Asset Classes
Can see client growth via asset class. Do you provide everything that a user may want to trade? Or will they have to have multiple accounts with different brokers?
Industry wide e.g. Admiral Markets posting growth in 2022 largely fuelled via CFD Indices
UK CFD market has 560k active traders per month in 2020, 720k in 2021.
By market type, stocks/equities segment recorded the highest market share in 2020 in the global contract for difference (CFD) market.
We all know about Crypto’s explosive growth too.
Generationally what retail is trading is changing. There's growth via generational targeting in trading products with a mobile focus.
Learn more about our CFD Solution
Emerging Markets
Exness is at $2.8 trillion a month. Above $2 trillion a month 5 months in a row.
"One of the reasons behind Exness trading volume skyrocketing was the company's focus on emerging markets, especially in Asia. Now, the broker is eyeing the retail trading space in Africa. It received a Kenyan regulatory license earlier this year, while already holding permission from the South African financial market supervisor." link
Interest to Fill Times for Clients in various regions
price sensitivity e.g. microlots etc.
trading instrument localisation e.g. local CFD Indexes
KYC regionalisation
- Pricing & Smart order optimisation => Going multi-region has it's own challenges
Regional IB Support
B2B Growth
New Asset Class / Growth Support - We are adding CFDs & Cryptos. Clients can do all of their business with a single provider. => Quick to add additional instruments
- World Class Connectivity - Avoid leaving temptation with any vulnerabilities in your rate formation. Synapse Connectivity Solution
Tailored Liquidity - Being able to match quality of liquidity provision to the quality of client
Market Making Additional Venues - Getting your price in front of more eyeball
Tailoring our Communications / Benefits
Persona ModellingSingle LP Broker - holy grail, where you receive all flow at rates you agree.
Broker In Aggregation (how many other LPs)
Regionalisation - different set of instrument priorities
Saturated/Developed Market vs Emerging Markets - Different Spread Regimes. Localised premium for end users.
Investors vs Traders
Targeting investors vs traders
Retail investors vs retail traders . The two personas will have different styles across
frequency of trades
duration of trades and
instruments to trade.
An investor generally buys and holds across a diversified set of asset classes over a long period of time; a trader looks for short term opportunities in both rising and falling markets on typically a narrower but more liquid set of instruments.
Things investors look for:
portfolio analysis
money is safe
Benefits
sustainable client relationships where clients have long relationships with the broker/platform
counter churn / more sustainable revenue relationship
Mobile Apps
Growth via apps. Simplified and users feel like they can keep track of their positions.
MetaQuotes delisting from Apple Store
Crypto & Neobanks
Well funded Crypto firms and Neobanks attracting a lot of users (big war chests to build new and attractive to consumer's product)
Gambling & Gaming
If we go to e-commerce or gambling expos, we can see new products and innovations at every event.