What is the reason brokers offer foreign exchange (FX) derivatives to their clients? The answer is simple: FX derivatives trading boasts such straightforward steps that traders of any level, from novice to advanced, can engage in it successfully. It projects a multitude of benefits not just for traders, but also for brokers who offer it.
Leveraging on the Advantages of MT4
The MetaTrader 4 (MT4) platform is used by majority of traders around the world, making it an essential platform for brokers to offer in order to convert and retain clients. Brokerage firms can capitalize on the existing reputation and myriad of benefits of the MT4, whose status as the industry standard, in addition to its intuitive user features, have kept it the preferred choice for traders. The cutting-edge platform designed for forex trading can now also allow users to trade FX derivatives via an easy-to-use plugin. The trader only has to select ‘up’ or ‘down’, with no need to calculate the distance of price movements or margin requirements.
Portfolio Diversity with Minimal Effort
Since its conception, many have traded FX derivatives via independent web-based platforms solely dedicated to it. However, with recent advancements in trading technology, brokers can offer FX derivatives on the MT4 platform with just a plugin. This development integrates both spot forex and FX derivatives trading on the same platform, allowing any broker to widen their product portfolio without the need to migrate existing clients to a separate one. Conversion and retention rates increase with a new product simply because more choices are offered to different profiles of traders. With a more diverse portfolio, brokers can extend their business, thus gaining access to a larger client base and a new market. One of its more unexpected benefits is letting brokers reactivate previously inactive accounts, especially those belonging to traders who sought FX derivatives trading which was previously available only on a separate platform.
Effective Monitoring and Customization
FX derivatives are easy and effective trading options for brokers to market and monitor. With flexible configurations and the ability to set payout rates, brokers have full control over all parameters of the products they are offering. The predetermined payout rates of FX derivatives allow traders to calculate the profits ahead of time, and are set by brokers.
Risk Management with Broctagon Prime
Broctagon Prime gives brokers the freedom to customize their liquidity model to best suit their needs. Our made-to-measure risk management system affords brokers ultra-flexible coverage and enhances the control they have over their risks. With advanced reporting tools that enable detailed data analysis for the MT4, brokers have the opportunity to concentrate their efforts on increasing their client portfolio while we take care of the rest.
Offering FX derivatives in addition to the usual trading kit opens a floodgate of possibilities and benefits for both brokers and traders—the unrivalled simplicity of FX derivatives combined with the sheer power of the MT4 engine means it is now easier than ever before for traders to begin trading with minimal hassle, and for brokers to expand their clientele base.
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