News & Analysis

You, the trader, deserve to be the centre of your broker's attention

Andrew Saks, Monday, 19 April 2021

We live in absolutely technology-centric times.

Not a moment of the average day goes by without the use of some form of internet-dependent means of organizing social lives, professional commitments and perhaps most importantly, personal finances. 

Those who grew up in the 1980s fell into two categories, the first being people who did not care at all about the new interest in computer science that had begun to infiltrate the geekosphere, and labelled those who gravitated toward it as unfashionable social outcasts. 

It turns out, almost forty years later, that those labelled in such derogatory context are now regarded as the epitome of cool. Even the Hollywood movies have stopped depicting computer science enthusiasts as awkward, nervous subjects of social avoidance and by absolute contrast show them as the empowered leaders of the shape of tomorrow. 

Out has gone Screech from Saved By The Bell, and in come Elon Musk-alikes. 

And talking of Elon Musk, people laughed at Sir Clive Sinclair, the software engineer of the early 1980s who gave many British middle classes their first home computer, when he unveiled a futuristic electric car. 

Nobody laughed when Elon Musk, the software engineer of the 2010s who gave the American middle classes the Blastar video game, location specific internet searches and one of the world's most convenient online payment channels, when he unveiled a futuristic electric car. 

How times have changed.

Now, the City of London, which is the world's most important and largest financial capital, is a technological tour de force. 

The open outcry pits of the 1980s from within which red-jacketed, brace-wearing barrow boys shouted orders and collected million pound annual bonuses whilst being the epitome of envy and desire to all who watched them ridiculed the studious and technologically minded.

Has your broker invested in their own tech? 

Today, the technologically minded are absolutely instrumental to London, and more importantly, to Forex and CFD traders. 

London today is the epicentre of technological development for trading, as the electronic financial services business has become absolutely key to the global markets. 

Indeed, today marks the first day of UK Fintech Week featuring IFGS 2021. Over the course of five days some of the biggest names in finance, government and technology are taking part in online events to discuss and debate some of the key issues affecting the financial technology sector.

Why, in that case, do many FX brokers continue to make absolutely no effort toward offering their clients a genuine, proprietary platform and execution environment? 

There are over 1300 entities with identical platforms which none of these entities developed themselves. 

All are white labels and affiliate partners of a third party platform company whose trading platform dates back to 2004. That is nearly two decades ago! 

Quite simply, brokers which have not taken the lead in ensuring that their traders are properly catered toward, and have not invested any resources whatsoever in developing their own trading infrastructure and platform to be able to give their clients a long term, properly supported trading experience are the difference between proper brokerages and affiliate marketing companies.

It is absolutely worth the research when looking for a broker. Is your broker genuinely invested in providing a high quality, in-house trading environment whose infrastructure and platform technology are the constantly refined result of a broker which cares enough about its clients to maintain a comprehensive development and support team, in the same way that the institutional market makers do?

Or, is your broker simply a sales team, taking deposits and having absolutely no commitment to ensuring your trading experience, access to global markets, execution and suitability. 

Perhaps even more interestingly, no ability to offer and support the long term goals of loyal customers.

Proprietary platforms empower loyal traders 

ETX Capital's proprietary platform has been instrumental to customer loyalty for many years. From the company's Central London headquarters, ETX Capital serves an extensive customer base of traders of whom over 70% are based in the British domestic market. 

Being able to be masters of their own destiny is one of the reasons why individual people trade the capital markets via electronic platforms. 

ETX Capital is one of only a handful of companies that owns its own trading infrastructure and can empower your trading journey as a valued long term customer. 

Those who simply refer traders to a third party are fueling the low-margin, high competition 'churning' phenomenon, in which sales offices of very small white labels which have no more than an offshore license and a small office with very few staff who could up sticks and disappear with no recourse within a matter of seconds are not part of the brokerage industry. 

The 1300 sales-led firms offering spot FX via the same platform simply onboard clients and then find that their competitors come and churn them, all the while being unable to offer any form of long term trading environment or to understand how the market operates. This is not the way to be treated as a trader.

Looking for a broker that has gone to the extent of developing its own infrastructure is vital. 

In this age of fintech, it pays to ask if a broker has actually developed its own technology and can offer its traders a genuine online trading platform of its own. 

This is, after all, a technologically-led route to financial independence.

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