Mobile e-FX delivery channels – are they ready to go mainstream?

Use of mobile devices is standard practice nowadays amongst traders in the retail FX sector, and it has been for several years. The ability to literally not only keep a finger on the pulse of the market from wherever you are, but to execute trades from anywhere, is increasingly taken for granted. Now, use of this “on-the-go” functionality is beginning to spread to the institutional markets as well and, as Heather McLean discovers, although take up of mobile communication applications has so far been far more cautious than that of the retail market, there are signs that this hesitancy is changing.

Demand for mobile FX trading is definitely here and growing, yet there are factors that have slowed down a faster uptake of mobile FX trading in the institutional FX space. Paul Caplin, executive chairman at Caplin Systems, comments that his company’s recent study, titled Trading on the move: The growing use of mobile devices in the capital markets, (September 2014) revealed that while 53% of the sell-side questioned in the survey said they were not offering mobile trading because of lack of demand from clients, conversely the single biggest reason cited by the buy-side for not using mobile trading was that the bank did not offer it.  The study shows that altogether, 46% of buy-side respondents are already using mobile trading services of some kind; of the remainder, an astonishing 38% (out of 54%) said they would do so if it was available from their bank. Only 15% cited compliance as a concern, and only 8% were worried about security, the research shows. Caplin’s research...continued

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