Step-by-step Solution on Forex Brokers Problems

by MD Tanjib Forex Trading Author

The article shows how to solve forex brokers' problems in intuitive ways. In this scenario, you will see many problems that every forex broker is facing, and in this article, we will show how we face these problems.

So, without any hassle let's bring out the main point--

1. Regulation

Problem

New and more stringent regulations are the most complex problems that forex trading professionals face. The FCA, ESMA, and the ASIC have all enacted tougher regulations in the last decade to limit leveraged trading for average retail consumers because such trading is considered a high-risk, speculative investment.

Solution

Brokers have a few options to deal with regulations. The first is to move offshore and into new jurisdictions to work with a global network of partners. This would enable brokers to match clients with partners in an unregulated country. The second option is to meet the regulation requirements.

2. Brokerage growth

Problem

Before the implementation of existing regulations, brokers could attract new clients with large bonus offers and other incentive programs. Now, forex brokers need to find other ways to compete within the forex space.

They need to find ways to grow their businesses without bonuses or exaggerated promises a high return rate.

Solution

The simplest way for brokers to attract new clients is to demonstrate their financial expertise. Clients want to invest with financial professionals who have a proven track record of success and who can help them understand competitive trading conditions.

3. Marketing

Problem

Even when forex brokers find a way to differentiate themselves from their competitors, they may find it difficult to promote their services online. Regulatory authorities issue rules about investment advertising. Additionally, Google, Facebook, and LinkedIn all have advertising guidelines that curtail ads for high-risk investments.

Solution

To advertise forex online trading, brokers need to think about improving their organic search results in web searches, meaning they need to use search engine optimization (SEO) to show up in results when someone searches a phrase like a forex broker.

Improving SEO and organic search is challenging. Again, publishing educational content like blog posts and webinars can help a forex broker rank well in search results.

4. Technology and infrastructure

Problem

Because retail forex brokers mainly offer online trading, it’s essential for them to have outstanding technology. Many white label providers offer appealing products that connect firms to MetaTrader 4 or 5, but brokers also need back-office technology that can support their daily work.

Financial advisors can waste a significant amount of time by doing tasks manually when they could automate them, like processing client questionnaires and approving KYC documents. If brokers only think about technology in terms of online trading, their infrastructure is likely ineffective.

Solution

Brokers need to carefully consider the technology providers that they choose. Their client portals need to be well designed so that clients have a positive experience, but they also need to make sure their back-office technology provides everything they need.

They should look for a CRM that makes it easy to track leads and monitor clients’ trading activity so that they can market the right products to clients and leads. They also need back-office software that can quickly generate revenue reports, hold client profiles, store KYCs and documents, track communications with clients, and make it simple to comply with regulations.

That's how it makes perfect. But, I think without having proper forex signals, it will tough to push enough profit for a beginner or in some cases scenario expert as well.

Best of Luck!