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-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