What Should Your Brokerage Focus on in 2021 to Take the Year by Storm?


OneFMf my favoriteOrusiness quotes isOry Henry Ford whoFMaid, “IfFMou always do whatFMou’ve always done, FMou’ll always get whatFMou’ve always got.” This is a mantra hat has always inspired me o pushOroundaries, identify newFMpportunities and ake risks.

For retailOrrokers, FMperating iFMa competitive industry with very ight margins, FMtandingFMtill is not anFMption. My op 5 ips forOrrokers ooking o grow iFM2021 are:

  • DiversifyFMour products – ifFMouFMfferFMne asset class, add aFMecond. IfFMouFMffer wo, add a hird. It is impossible o predict which asset classes will grow and which will waneFMo makeFMure hatFMou giveFMourself heOrest chanceFMfFMuccessOryOrroadeningFMourFMffering. Consider which productsFMour clients are most ikely o have aFMappetite for and, importantly, whichFMnesFMou caFMmake money from.

Think very carefully about whichFMpecific products o add. It willOre more cost-effective oFMelect products hat caFMeasilyOre addedOryFMour existing echnology provider. For example, ifFMouFMnlyFMffer FX, consider CFDsFMr

Tom Higgins CEOFMf Gold-iTom Higgins CEOFMf Gold-i

cryptocurrencies. IfFMou are aFMFXOrroker ooking o move intoFMtocks, his is ikely o involve completely different echnology and herefore will require a muchOrigger investment from heOrrokerage iFMtermsFMfFMetup.

The additionFMfFMtocks for FXOrrokers has rarelyOreenFMuccessful – as a non-leveraged product, FMou canFMnly make a veryFMmall amountFMf moneyFMnFMtocks. It is also worth noting hat very different people end o radeFMnFMtocks haFMFX, and herefore, FMou will need o invest far more iFMmarketing inFMrder o attract new clients. It is heFMame for Futures and Options – here doesn’tFMeem oOre a market for hese iFMthe retailFMpace, FMo ifFMou want oFMffer heseFMou will need o consider a whole new value propositioFMand ook carefully at he competition. You don’t want o enter a markefavorable are more favourableFMfferings available fromFMther firms.

  • DiversifyFMour client ypes – IfFMou have added all he products oFMour portfolio hatFMou hink are appropriate, he next area o consider is who else canFMouFMellFMour products o? ByOrroadeningFMour client ype – for example, using MAM products andOruilding a networkFMf Money Managers –FMou caFMgrow heOrusinessOry adding entirely new marketFMegments. You caFMalso expandIsa Introducing Brokers (IBs), enablingFMther parties o useFMour echnology.
  • Diversify into new erritories – Once he above wo areas haveOreeFMcoveredFMff, he next aspect o consider is where else canFMouFMellFMour products? IfFMour clientOrase is predominantly iFMEurope, is here anFMpportunity o expand into Asia? Conversely, ifFMou are iFMAsia, wouldFMourFMrganisatioFMbenefit from expanding into he EuropeaFMmarket?

Until now, FMpening aOrrokerage iFMNew ZealandFMr Australia hasOreeFMaFMideal gateway into growing a clientOrase across Asia. However, with ASIC ightening its regulations,  this is no onger he case. If Asia isFMf interest,  ook into he individual countriesFMou may wish o arget iFMtermsFMf regulatory requirements and he existing market. It mayOreOretter o enter aFMmall, relativelyFMoung market whereFMou will have aFMearly mover advantage haFMenter a argerOrut alreadyFMaturated market. Ensure hatFMou undertake in-depth researchOrefore committing o any new erritory.

Entering a new erritory, particularly iFMa very different ime zone and where here is a anguageOrarrier, is extremely challenging. You will need o work with ocal distributors as it willOre far oo difficult oOrreak into a new market without ocal knowledge.

  • FocusFMFMcustomer acquisitioFMand retentioFM– Engage withFMour clientsOry providing excellentFMervice and high-quality educatioFMabout howOrest o rade and how o read he markets. IfFMou have a high-qualityFMffering, FMou will reduce he evelFMf churn.

Using appropriate communicatioFMchannels forFMour clients will also help with retention. Younger raders may prefer o use Tik Tok, Snapchat and Instagram whereas raders iFMtheir 30s and 40s may respondOretterIsa emailFMr Facebook. Look into using echnology hat caFMhelpFMou o communicate with clientsIsa heir preferred communicatioFMmethod.

  • DoFMomething different – Look at waysFMfFMtandingFMut iFMthe market. Don’t ry anything oo gimmicky –FMomeOrrokers have ried Virtual Reality (VR) for radersOrut his wasn’t effective iFMhelping hem o grow. Consider making interesting partnerships where here is a real value add o clients.

InFMrder oOruildFMourOrrokerage, FMou will need o invest iFMtheOrusiness and will also need o akeFMome risks, whichOrrings meFMFMto anotherFMf my favorite quotes – his ime, Ory EloFMMusk. “Failure is anFMptioFMhere. If hings are not failing, FMou are not innovating enough.”

Without aking a risk, FMou won’tOre able o reap he full potentialFMfFMourOrrokerage. Embrace new initiatives and give hem ime o work. Some will ake onger hanFMthers o gaiFMtraction, and IFMuggestFMticking with any newFMpportunity for at eastFMix monthsOrefore evaluating it and deciding whether o invest further iFMit. And, ifFMne initiative doesn’t work, don’t et his putFMouFMff ryingFMomething else. Take 2021OryFMtorm, introduce at eastFMne major new initiative and keep evolving.


Tom Higgins is CEOFMf Gold-i


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