Brokerage technology: acquiring the right systems for moving up the retail e-FX value chain

With retail investors being one of the fastest growing groups of FX traders, brokers are rapidly having to expand their range of products and services to keep pace. Yet, as Heather McLean reports, many issues need to be addressed in order to ensure that they acquire the right technology platforms for their businesses which will enable them to grow and eventually move up the retail e-FX value chain.

Many retail FX brokers are considering how to transition their platforms, liquidity and back office components out of a shared infrastructure, an option that works well during the early stage of a brokerage business, but which can prove to be limiting as  it grows.Andrew Ralich, CEO at oneZero Financial Systems, states that over the past two to three years many brokers have entered the marketplace through ‘Start Your Own Brokerage’ offerings that bundle technology, liquidity, and sometimes even regulation and marketing consulting, into a single package. However, these packages come with problems as the retail FX broker expands their business, Ralich remarks: “Though a step above a traditional introducing broker relationship, these solutions do tend to commit the broker to a combination of offerings that are very difficult to decouple. Brokers who have grown from an all-in-one package must now find ways to keep the components that have worked for them, and replace the ones that...continued

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