Upcoming trends in the broker world

Author: Petros Kalaitzis

The broker world is forever changing, and new trends emerge all the time. Throughout many conversations with partners, clients, and peers, we’ve noticed a few phenomena that are undeniably on the rise.

And today, we’d like to share our thoughts and predictions about the trends shaping tomorrow's financial industry.

Customer experience is once again king

For starters, we believe that the 2023 customer experience will once again play a vital role in the expansion and revenue growth of every company in our sector. Competition is becoming tougher, and companies must provide outstanding customer experience to grow and increase their market share.

Creating meaningful interactions across all your engagement channels to reshape the day-to-day user experience and benefit your team's productivity should be one of the top priorities in order to achieve this.

Companies that put their clients first are winning. And it’s not just happening on paper, they are actually creating this type of environment and facilitating interactions that resolve more cases and close more deals. All this appears to be achieved via multichannel and AI solutions.

Technology x happy clients

Many brokers we talk to are already actively revolutionising the way they interact with customers through next-generation analytics, sales AI, Live Chat, and other cutting-edge technology. Everyone else needs to catch up if they want to remain competitive.

We are also seeing that top brokers now choose to deliver personalised content and products quickly to their clients across all channels and devices from one central place. It is made possible by flexible omnichannel technology that enables operational cost optimisation.

The rise of proprietary trading

Proprietary Trading (PropTrading) companies are considered to be one of the fastest-growing trends in our sector.

Such companies allow their clients to participate in a demo challenge to prove that they can trade based on specific profit and loss targets provided by the PropTrading company. Once the traders demonstrate that they possess the right risk management skills, the company will open a live account, fund it with its own money, and allow the trader to manage the live trading account.

This way, the company is using its own finances instead of the client’s investments and shares a percentage of the trading profits from the account. This enables the firm to earn profits from a trade rather than just the commission it receives from processing trades for clients. It also allows the trader to earn profits without risking any of the trader’s own capital since the account is funded by the company.

Many PropTrading firms that are on the rise are currently getting ahead by integrating advanced modeling and trading software.

Prop traders have access to sophisticated software and pools of information to help them make critical decisions. They use various strategies such as merger arbitrage, index arbitrage, global macro-trading, and volatility arbitrage to maximise returns.

How you can participate in the PropTrading trend

First of all, if you keep your eyes peeled for what’s up and coming, you will be able to spot new trends earlier than most people and take advantage of your insights.

Here is what you can do to integrate the trends we talked about today into your brokerage.

To get into PropTrading, set up the infrastructure for the trader competitions and training. You won’t find all the necessary functionality in trading platforms natively, so you might need to look elsewhere.

To establish a demo environment, you can use Trade Processor, the liquidity bridge by TFB that emulates actual market conditions and execution even in demos.

With that, you’ll be able to accurately estimate each trader’s performance, giving brokers extra confidence in providing trades with real funds down the line.

Tools for Brokers builds enterprise-ready brokerage solutions that empower our clients to grow fast, manage risks, and increase volumes. If you’d like to learn more about what we do or have a particular need, please email us at sales@t4b.com for more information.