The forex markets have changed a lot in the past few decades, becoming ever more competitive for individual traders and brokerages alike. In order to be successful when exchanging currencies these days it is important that traders maintain a competitive edge. There are many ways in which this can be done for both traders and brokers.
Who is the Competition?
Firstly, it is important that you know who the competition is. For forex brokers this is simple, it will just be all the other forex brokers on the market. Working out their strengths and weaknesses can help you to fine tune your own forex brokerage, by building on their successes and finding solutions to their weaknesses.
For individual traders, working out the competition can be a little trickier, but it does exist. High priced brokers charging a high spread are the obvious ones, wanting to ensure that you plough as much money into their firm through losses. The other competition can be yourself. Blaming yourself for failed trades, letting emotions get involved and risking large losses are all down to yourself.
Build a Successful Trading Plan
As a trader you should have a quality trading plan already to hand, and it should be developed to be as competitive as possible. Still, it is important to factor risk into this strategy, as if things do go wrong then you will need to maintain enough capital to continue trading forex in a competitive manner.
Seeking out expert financial advice can help in this respect. Forex brokers need a successful business plan themselves, to ensure that they aren’t losing out when helping traders. Put this together with your aims in mind and building on the strengths of competitors.
Use Efficient Trading Platforms
Competent forex trading platforms allow for competitive trading, as currency can be exchanged quickly and accurately. They also provide the most up to date information, news and analysis to keep traders well informed. If you’re a trader, then investing in a flexible forex platform is essential to stay competitive.
For forex brokers, developing and offering such platforms is a necessity to stay ahead of the competition. Mobile and tablet trading apps are now offered by almost every brokerage firm, so to keep up with the competition your company must have developed these as well. To stay ahead of the competition, it will need to be using the latest technology in its products.
Forex Broker Offerings
As well as staying up to date with the latest forex trading technology, brokers need to be offering attractive rates to traders that still fit in with their business model. This will help them draw in more traders.
The days of charging large brokerage fees are going, as more and more traders exchange currencies independently thanks to the advancements in technology. This is making it harder for brokers to survive and remain competitive, so they are having to look at new and innovative approaches. Whether you’re a trader or work for a brokerage firm, staying competitive in the forex game is essential.