New year, new me? What brokers can expect in 2021

Author: Alexey Kutsenko

By now, we have all learnt that the future is uncertain. Excessive planning and forecasting were pushed back last year, as the world was learning again to take one day at a time. Today, we still do not know exactly how the year 2021 will play out. Yet, there are some ideas about what to expect that we would like to share with you.

High volatility throughout the year

We have all the reasons to believe that market volatility will be high in 2021. All the factors are there: the pandemic is still going strong, vaccination is slow, economies are struggling, and policymakers are implementing market-shaking protective measures.

High volatility means high risk. It also means high profits. With the right tools and proactive measures in place, brokers can not only mitigate the risks but also make a profit. Last year we shared an action plan for our clients that would be relevant for any high volatility event.

New traders joining the market

Last year thousands of people found themselves with more time on their hands. As a result, many of them joined the world of trading and investing. We believe that this trend will continue in 2021. Despite all the events last year, markets grew substantially, with traders making big wins. More and more people will want to have their share in this, so brokers have an unprecedented chance to gain new clients.

More regulation is upon us

Regulation is a good thing. It defines clear rules and protects all market players. Over the past several years, regulators were pushing laws and further restrictions, and this year will be no different. Events like the recent Reddit battle against Wall Street show the power of traders, and there is no doubt that big industry will learn its lesson.

Brokers must be prepared to provide all necessary data for their regulators. We recommend implementing a regular reporting strategy right now, even if there are no official requirements at the moment. Not only will it help prevent issues with authorities should new rules come in place, but it will also help gain a perspective into the internal processes and target areas for improvement.

Booming demand for learning and content

As the new traders join the market, they are eager to learn how it functions and what are the common mistakes to be avoided. Such traders will need educational content, so brokers that invest in blogs, webinars, and other materials can get ahead of the competition.

Generally, clients today are much more knowledgeable and hungry for information. So regardless of brokers’ positioning, having a constant flow of content is necessary to be perceived as a reliable and trustworthy expert on the market.

In the current environment, it is more important than ever to have a technology partner who will support your brokerage and elevate your services to the next level. Tools for Brokers provides an ecosystem of solutions for brokers of all sizes. Please email us at to learn more about our products and how we can help you get stronger in 2021.

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