Brokers are continuously faced with difficult challenges, among them the ongoing evolution of technology and client approaches. Many retail venues have opted to just continue the status quo, leading to a stagnation of the mindset towards innovation and improvements in recent years.
This rigidity and stubbornness is hardly a new concept for the retail brokerage industry. We have seen this on full display with brokers’ steadfast loyalty to existing solutions, many of which are quite literally dated technology. This stance has to change, and brokers need to adapt or die to growing constraints.
There is certainly an opposition to most change or innovative solutions that have dramatically slowed in the past two years. Even looking at various technical trading solutions currently on offer, most brokers lack a combination of vision, focus, support, and new features, instead clinging a close-minded policy.
To even the most casual observer, it is obvious that most retail solutions in the FX and CFD space are quite behind many of the modern trading technologies, both in terms of design and functionality.
Key challenges changing the game
It is true that the past few years have seen a huge shift in the retail brokerage space. The push for more regulated offerings has led to a seismic change in the way products are being offered to investors. Whether it is MiFID II, ESMA’s newly mandated Leverage
Leverage
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
Read this Term requirements, or the ban on crypto and binary advertising, brokers have been forced to rethink their approach.
These all loom as key challenges that brokers need to adapt to. The fear of the unknown has been an ongoing concern in the retail space for the past few years, though marketing challenges also have grown more prominent.
These, coupled with heightened compliance requirements from regulators, have caused many brokers to oppose any change. In parallel, traders and clients have grown increasingly demanding in their own respective needs, placing a premium on technology, platforms, and advertising.
The past two years have served as the best example to date as a cautionary tale for unprepared brokers. The swift death of the binary options industry is testament to the perils of a linear business model that could not keep up with regulations. Moreover, Google and Facebook’s crackdown on crypto marketing have caught many existing brokers off guard.
In order for the retail trading industry to survive these changes, let alone prosper, there needs to be a serious shift in strategy. Brokers need to adapt to survive this dynamic environment, and those that cling to the status quo will continue to be phased out in favor of evolving competition.
Why are brokers opposed to new solutions?
Individuals are creatures of habits, a stance shared by executives and brokerages respectively. Despite the aforementioned changes seen in the industry over the past year, many retail venues still struggle to shift their thinking or operations.
For many it is simply a matter of comfort zone or a lack of anticipation. While most brokers saw recent regulatory changes coming, many have been slow to act in their adoption of new solutions, opting instead to meet minimum levels of compliance.
New technology and security are often cited as costly ventures, though both have been shown to pay dividends in the long-run. Many brokers operate with the false understanding that it is difficult to integrate new technology into their existing infrastructure. This is a fallacy, as seen with the rise of MT5 over the past year, with the platform being largely adopted alongside MT4.
Additionally, brokers also subscribe to the false notion that there are high costs of implementing new technology. Again, the cost for classic brokerage startup fees is a worthy comparison, which easily should justify the evolution of new solutions.
By and large, many brokers are content to stay the same course rather than charting a new one. Risk averse behavior is also a factor though many brokers fail to see how being like the rest of the field is one of the biggest risks to take.
More recently, clients have placed a growing emphasis on security, given the groundswell of breaches and hacks across the industry. There is no excuse for not taking adequate measures to fortify security protocols. For this reason, data is always safer in encrypted cloud-based systems rather than traditional means.
What does the future hold for brokers?
While many brokers have lagged behind, there are also those that have been ahead of the curve. Companies such as IG Group, eToro, and Plus500, among others, have successfully moved to new technology to bolster or diversify their respective offerings. The reliance on newly innovative platforms from fintech providers has already yielded positive results, which should be seen as the strongest endorsement to date.
Clients also demand more in 2018 than ever before. This in turn necessitates a more innovative and diversified offering that keeps these individuals supported, informed, and safe. This can only be achieved if brokers manage to recognize the need for transparency. Indeed, transparency is a must and not a choice.
Keeping up with the latest technological and operational demands requires a different approach and solutions offering entirely. Toomit has been one such group working to help foster innovation in the industry for several years now. The group’s expert team boasts over a decade of experience across the trading, marketing, sales, dealing, and compliance sectors.
Years of development has gone into what many brokers already recognize is the future, i.e. new solutions and disruptive technologies. Toomit has engineered from scratch a product that caters to both clients and brokers, integrating the latest technologies that allow all parties to keep up with this new trend.
It is this innovative approach and forward-thinking that has led to the development of a unique product, the Price Driven Market solution, TOOMEET. Toomit has operated as an open minded-company that has benefitted consistently from broker/trader feedback. For this reason, TOOMEET has been well adapted to meet the highest industry standards possible.
What can TOOMEET do for you?
TOOMEET is a cloud-based Trading Platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
Read this Term suitable for CFD brokers, enabling existing and future brokers to rapidly set up a dynamic trading ecosystem. Operating as a distributed web application requires no infrastructure and has a very low cost of implementation that brokers will be very receptive to.
Simultaneously, Toomit is offering extreme flexibility in deploying and maintenance the solution. TOOMEET offers full cross platform and cross device compatibility, with no installation being required for instant user access. Toomit has also addressed the paramount need for security, which presently is key for any business.
Consequently, TOOMEET is impenetrable by third party code offering Encrypted data at rest and Encrypted internal protocols, 360 safety.
TOOMEET offers a shift towards low latency price feeds. This includes ultra-high-speed web sockets, unlimited number of feeds, instant price validators/spike filters, fast trade capabilities, and flexible market/client execution.
Furthermore, as brokers require access to fast and secure data, TOOMEET offers a fully integrated back office and CRM that provides full KYC & AML integration. Automated compliance alerts, customizable compliance templates, unlimited document cloud storage, and multi format import/export capabilities are also supported.
Don’t be left behind with the rest of brokers in 2018. Find out how to take the leap today with TOOMEET.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates
Brokers are continuously faced with difficult challenges, among them the ongoing evolution of technology and client approaches. Many retail venues have opted to just continue the status quo, leading to a stagnation of the mindset towards innovation and improvements in recent years.
This rigidity and stubbornness is hardly a new concept for the retail brokerage industry. We have seen this on full display with brokers’ steadfast loyalty to existing solutions, many of which are quite literally dated technology. This stance has to change, and brokers need to adapt or die to growing constraints.
There is certainly an opposition to most change or innovative solutions that have dramatically slowed in the past two years. Even looking at various technical trading solutions currently on offer, most brokers lack a combination of vision, focus, support, and new features, instead clinging a close-minded policy.
To even the most casual observer, it is obvious that most retail solutions in the FX and CFD space are quite behind many of the modern trading technologies, both in terms of design and functionality.
Key challenges changing the game
It is true that the past few years have seen a huge shift in the retail brokerage space. The push for more regulated offerings has led to a seismic change in the way products are being offered to investors. Whether it is MiFID II, ESMA’s newly mandated Leverage
Leverage
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders
Read this Term requirements, or the ban on crypto and binary advertising, brokers have been forced to rethink their approach.
These all loom as key challenges that brokers need to adapt to. The fear of the unknown has been an ongoing concern in the retail space for the past few years, though marketing challenges also have grown more prominent.
These, coupled with heightened compliance requirements from regulators, have caused many brokers to oppose any change. In parallel, traders and clients have grown increasingly demanding in their own respective needs, placing a premium on technology, platforms, and advertising.
The past two years have served as the best example to date as a cautionary tale for unprepared brokers. The swift death of the binary options industry is testament to the perils of a linear business model that could not keep up with regulations. Moreover, Google and Facebook’s crackdown on crypto marketing have caught many existing brokers off guard.
In order for the retail trading industry to survive these changes, let alone prosper, there needs to be a serious shift in strategy. Brokers need to adapt to survive this dynamic environment, and those that cling to the status quo will continue to be phased out in favor of evolving competition.
Why are brokers opposed to new solutions?
Individuals are creatures of habits, a stance shared by executives and brokerages respectively. Despite the aforementioned changes seen in the industry over the past year, many retail venues still struggle to shift their thinking or operations.
For many it is simply a matter of comfort zone or a lack of anticipation. While most brokers saw recent regulatory changes coming, many have been slow to act in their adoption of new solutions, opting instead to meet minimum levels of compliance.
New technology and security are often cited as costly ventures, though both have been shown to pay dividends in the long-run. Many brokers operate with the false understanding that it is difficult to integrate new technology into their existing infrastructure. This is a fallacy, as seen with the rise of MT5 over the past year, with the platform being largely adopted alongside MT4.
Additionally, brokers also subscribe to the false notion that there are high costs of implementing new technology. Again, the cost for classic brokerage startup fees is a worthy comparison, which easily should justify the evolution of new solutions.
By and large, many brokers are content to stay the same course rather than charting a new one. Risk averse behavior is also a factor though many brokers fail to see how being like the rest of the field is one of the biggest risks to take.
More recently, clients have placed a growing emphasis on security, given the groundswell of breaches and hacks across the industry. There is no excuse for not taking adequate measures to fortify security protocols. For this reason, data is always safer in encrypted cloud-based systems rather than traditional means.
What does the future hold for brokers?
While many brokers have lagged behind, there are also those that have been ahead of the curve. Companies such as IG Group, eToro, and Plus500, among others, have successfully moved to new technology to bolster or diversify their respective offerings. The reliance on newly innovative platforms from fintech providers has already yielded positive results, which should be seen as the strongest endorsement to date.
Clients also demand more in 2018 than ever before. This in turn necessitates a more innovative and diversified offering that keeps these individuals supported, informed, and safe. This can only be achieved if brokers manage to recognize the need for transparency. Indeed, transparency is a must and not a choice.
Keeping up with the latest technological and operational demands requires a different approach and solutions offering entirely. Toomit has been one such group working to help foster innovation in the industry for several years now. The group’s expert team boasts over a decade of experience across the trading, marketing, sales, dealing, and compliance sectors.
Years of development has gone into what many brokers already recognize is the future, i.e. new solutions and disruptive technologies. Toomit has engineered from scratch a product that caters to both clients and brokers, integrating the latest technologies that allow all parties to keep up with this new trend.
It is this innovative approach and forward-thinking that has led to the development of a unique product, the Price Driven Market solution, TOOMEET. Toomit has operated as an open minded-company that has benefitted consistently from broker/trader feedback. For this reason, TOOMEET has been well adapted to meet the highest industry standards possible.
What can TOOMEET do for you?
TOOMEET is a cloud-based Trading Platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real
Read this Term suitable for CFD brokers, enabling existing and future brokers to rapidly set up a dynamic trading ecosystem. Operating as a distributed web application requires no infrastructure and has a very low cost of implementation that brokers will be very receptive to.
Simultaneously, Toomit is offering extreme flexibility in deploying and maintenance the solution. TOOMEET offers full cross platform and cross device compatibility, with no installation being required for instant user access. Toomit has also addressed the paramount need for security, which presently is key for any business.
Consequently, TOOMEET is impenetrable by third party code offering Encrypted data at rest and Encrypted internal protocols, 360 safety.
TOOMEET offers a shift towards low latency price feeds. This includes ultra-high-speed web sockets, unlimited number of feeds, instant price validators/spike filters, fast trade capabilities, and flexible market/client execution.
Furthermore, as brokers require access to fast and secure data, TOOMEET offers a fully integrated back office and CRM that provides full KYC & AML integration. Automated compliance alerts, customizable compliance templates, unlimited document cloud storage, and multi format import/export capabilities are also supported.
Don’t be left behind with the rest of brokers in 2018. Find out how to take the leap today with TOOMEET.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates
