By Evgeny Sorokin SVP of Software Engineering at Devexperts
By Evgeny Sorokin SVP of Software Engineering at Devexperts

Eight demands traders have for their brokerages

Devexperts build trading platforms for different brokerages servicing over six-million traders worldwide. Over the past fifteen years, we have gained insight into what traders look for in a broker’s platform. Here are eight of the demands traders have that brokerages should be listening to, and how to meet them.

1.Anticipate your trader’s needs by being prepared

If you want to attract new users and increase trade volume, never forget the basics: reliability, instant utility, and speed. The effort you put into these things today will still be paying off dividends for your traders, years down the road. The first step should always be to check if your technology makes it past these filters, and then go for hype points with features, tools, and functionalities.

2. Provide a feeling of accomplishment to improve onboarding

Traders want “increasingly simpler sophistication”, which demands a lot of UI/UX effort. A trading platform isn’t a book, people are going to judge it by its cover. This goes double for mobile interfaces.

3. Be able to provide variety and volatility to attract more traders

CFDs on Futures, Stocks, Indices, Crypto-currencies. However, to be able to grow the volumes, a broker needs to quickly offer a new emerging asset class; just offering CFDs is not enough due to spreads and the nature of CFDs.

4. Pay attention to your trader’s needs 

One of the most valuable things for the client is to be able to see data that is important for them in a quick and accessible way. There are people who, for example, don’t use charts for trading and focus more on volatility. At the same time, there are other traders interested in more in-depth analysis. Easier decision making means easier trades; easier trades mean more trades.

5. Be able to offer additional services

Brokers can offer additional services at additional prices. For example, educational programs, market insights, Level 2 data, social functions such as integrated chats, cloud watchlists, etc. Through features such as these, brokers will form strong relationships with long-term clients and successful traders. 

6. Provide everything to unlock the full potential of technology

Everything has a bit of room for improvement. Innovation features sometimes come with complexity, though they need to be simplified to serve users better. This conflict of complexity and simplicity can be mitigated by an approach of unfolding complexity progressively at the right time and in the right context. This is best done via in-app walk-through widgets or contextual notifications that are triggered according to rules and events. Innovation is essential in these areas: data analytics tools, UIs, mobile solutions, development of trading tools for wealthy sophisticated investors, mobile interfaces, cloud-based algorithm trading, and AI. Give traders a better way to see what is going on the market. Getting this information in time and in an easy manner will be a huge improvement to trader’s decision making. Having instruments, such as monitoring of unusual activity, new methods of data analysis, and educational tools.

7. Make your services accessible and easy to use 

The modern marketing toolbox does the job, tracking all traders’ activities from guest mode through account registration and first deposit, allowing you to apply BI to the trading behavior and find hypotheses. To do this, you must run a series of A/B tests, tweak the interfaces, learn from this experimentation, and repeat. Repetition should help optimize the results. The easier the access to your services is, the more likely it is for traders to stay. 

8. Stay up to date on information

Machine Learning techniques are able to analyze market conditions and recognize trading patterns. Many people are creating models that identify different patterns of the market and trade in adherence to those patterns. Others apply the same principles in order to adjust spreads and execution conditions automatically.

Traders strength is in their ability to perceive favorable and ideal market conditions and act on them. Therefore, brokers must have a thorough understanding of market conditions at any time in order to protect the business accordingly (i.e. adjust spreads, change execution strategy for the trades, etc.).

With the right risk management techniques and technology in place, brokers are able to successfully monetize their client base. Nowadays, brokers need to take a dynamic approach towards managing their clients while ensuring they still have an ideal user experience. Most brokers have now departed (or are departing) from a fixed A/B book model to better monetize their flow. Every dollar counts and technologies continue to change as competition increases across new and existing markets.