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5 Tips For A Successful FX Brokerage

Boston, MA July 12, 2011

A brokerage's success depends upon a client base that not only continues to grow, but also remains loyal once the account has been opened.  With over five years of experience in this industry, I've noticed some common themes for success which I'll share in this blog. 

Know Your Client

Trading forums have grown in popularity because they serve as a common meeting ground for like-minded traders to exchange ideas.  Traders, especially those new to the business are constantly searching for tips, insights, and pretty much anything that can improve their success.  By asking your clients key questions pertaining to their strategy, the time frame they follow, and the pairs they trade, you'll have a fairly accurate idea of what they are trying to do.  A brief discussion about the current market trends or a new strategy goes a long way in building trust and credibility among your clients.  The goal is for them to view your brokerage as more than just the place where their trading account is held, but a place to share their thinking and get useful, personalized advice.

Know Your Stuff

If you aren't following the markets, how convincing will you sound with a new prospect?  A great way of seperating your firm from the competition is to offer more than just answers to questions.  Imagine receiving a personal email from your broker with a link to an article on GBP/USD or perhaps a brief phone call regarding an important news announcement for the Australian dollar?  Once you've gained this knowledge, start getting creative - you'll be surprised where it takes you.  The IB Times http://www.ibtimes.com/forex/ and DailyFX www.dailyfx.com are two sites I'd suggest visiting to stay on top of the markets.  The knowledge doesn't stop there though.  In the fast paced, rapidly changing landscape of FX what happened on Monday is old news by the end of the week.  I recommend visiting Forex Magnateswww.forexmagnates.com to keep up with industry changes.

All Strategies Are Good

 Picture ten traders sitting together in a room.  It's inevitable that the subject of trading strategies will emerge, most likely ensuing in a heated debate.  Traders become very defensive of their strategies because they've put effort into developing them and more importantly feel their approach will be successful.  If you wish to preserve goodwill with your clients, refrain from talking negatively about their strategy.  It's fine to introduce new ideas but make sure to tread carefully.

Every Conversation Is An Opportunity

It's difficult to call a company these days, especially the larger ones, without feeling like the person on the other line is a machine (sometimes they are). The personal touch is crucial.  The next time you field a call from one of your clients, try asking a quick question about their strategy or the market.  Something as simple as "boy, the Euro sure took a spill" could possibly lead into a productive discussion.  The downside is that your client is too busy to talk; in trading terms the risk to reward ratio is extremly favorable.

Have A Strategy At Your Fingertips

You are talking to a prospect who has no prior trading experience.  The interest is there but without a strategy why would they consider trading?  A way of bridging the gap is to offer them a few simple strategies to try out on their demo.  It's also a good idea to have a few advanced strategies for existing clients who are open to some new ideas.  In either case your clients will perceive your brokerage not only as the place they hold their account, but a valuable resource that will help them become more successful.

Questions?  Comments?  Contact Jonathan at jbaumgart@bostontechnologies.com

Posted July 12, 2011 by Johnathan Baumgart