Weekend trading for brokers

Author: Ivan Egorov

Over a year ago, we released an add-on application designed by Tools for Brokers that integrates with Weekend FX by LMAX and enables trading outside of traditional working hours.

Today, we’d like to recap what the add-on does, how it works, and what benefits and risks it holds for brokers.

How does the TFB add-on for Weekend FX work?

The add-on enables margin FX trading from Friday, 17:05 EST, to Sunday, 17:00 EST, and works as follows:

• The platform automatically closes the positions on their side on Sunday evening.
• Brokers synchronise the closing of positions with their system.
• The add-on app receives encrypted pricing data and closes positions on the MetaTrader side.

How does weekend trading benefit brokers?

Weekend trading with the TFB add-on for Weekend FX can greatly benefit the brokerage.

Attract new traders

Some people would love to trade in order to learn a new skill and earn extra cash. But many of these people are busy with their 9-to-5 jobs and life in general, leaving them little time to dedicate to trading. For them, weekend trading might be the only opportunity to enter the financial world. This means that you’re unable to reach this target audience unless you offer trading on Saturdays and Sundays.

Retain existing traders

Another way to utilise weekend trading is to retain your existing clients by offering them an exclusive service and a risk diversification strategy. It’s not a secret that the trading industry is highly-competitive, and many modern traders won’t let loyalty keep them from moving to another brokerage with a better offer.

Larger volumes

The more trading hours there are, the more volumes brokerages get. There are no 100% guarantees in the trading world, but the general rule is simple – more hours of trading by more people means larger volumes for brokers.

The hidden risks of weekend trading

Naturally, anything you do has its pros and cons. And the same with weekend trading – there are risks that you need to keep in mind in order to avoid them:

• Volatility. While volatility can be a good thing and mean higher profits over shorter periods of time, it also means higher risks for traders that responsible brokers need to watch out for.
• Extra costs. Weekend trading is a highly demanded feature, but as brokers start to introduce it to their company, there might be little volume happening for some time until traders learn about the new opportunity.
• Burnout. Weekend trading does not require much manual labour, but it must still be set up and monitored to ensure a smooth process. And if a broker is not careful and doesn’t automate their work, they might end up burnt out.

Final thoughts on weekend trading

The world has changed significantly over the past few years, and there’s no sign that the transformation will stop. As more things move to the digital space and become 24/7, it becomes more normal for us to expect around-the-clock availability of various aspects of our lives.

Same with trading. Traders know the technology is there and are willing to trade outside the traditional work week. Catering to their needs could mean having a successful brokerage that can withstand any turbulence that life is generously sharing with us lately.