The power of social trading (Tradency) for Japanese Retail FX

Thanks to LeapRate for the chart below showing the on-boarding rate for live trading accounts at Invast Securities, one of Japan’s leading retail FX brokers.

The reason for the rapid rise is that in Nov 2011 they integrated Tradency’s Mirror Trader in November 2011 – the power of social trading!

ST24Chart 22APR12

Full story on LeapRate

Liquidity + UX design (Barclays + FXCM) = win win

Barclays partners with FXCM to launch UK retail FX platform

Interesting to note Barclays the # 3 global FX powerhouse, has partnered with FXCM for their new UK retail FX platform, Barclays Margin FX – but why?

Barclays will naturally provide the FX liquidity, with FXCM providing the front end technology, and UX design. Continue reading

Build or buy, it’s all about differentiation

Early this morning, New York time, I and about 40 other people attended the panel “Evolving Platform Technology & New Markets” which was sponsored by Caplin as part of Profit & Loss’s Forex Network tradeshow in New York. As Jennifer mentioned recently, the panel consisted of Raj Iyer of BNY Mellon Global Markets, Thomas Lo of FinaniciaLogix Group and Jose Cadalzo of Caplin systems, all questioned and moderated by Colin Lambert, Editor of Profit & Loss magazine.

The panel at P&L Forex Network

The discussion was wide ranging and touched on what institutional trading platforms can learn from retail traders, FX trading in Japan vs that in the USA, and on how different the requirements for software as a service for a bank might be from the service that Amazon and Google might offer.

However the main point that all of the panelists agreed upon was that when creating a single-dealer platform there isn’t really a choice between building it and buying it – every bank does some of each, but the issue is how much you buy and how much you build yourself.

The conclusion was that there’s very little point in spending time and money building anything that doesn’t differentiate you from your competitors. Differentiation can be in the pricing and the products, it can be in the content and analysis, and it can be in the way that the interface is designed and that information is presented.

An interesting conversation. I’m sure we’ll hear more about this in the weeks and months to come.

Saxo mobile trading whilst base jumping (gimic, but very stylish video)

Last week, Saxo announced they had completed a spot FX trade using their new mobile trading app, whilst bungee jumping.

There was much joking about the ‘rate bouncing’ after the trade etc. Their website shows more daredevil ways to trade, including Base Jump Trading, ‘The first FX trade at terminal velocity‘. Great video here and of course Saxo are fully embracing HTML.

MahiFX – launches this week

Dave Cooney, one of original architects of BarCap’s hugely successful BARX FX platform, and who left last year, is launching his new FX retail platform MahiFX this week.

The platform will allow clients to Continue reading

UX & social media in futures and options

While the discussion around trading decisions based on social media sentiment continues:

Continue reading

The growing FX retail trading market

Last week, I attended an Aite conference on FX retail trading. Some very interesting statistics were presented by Javier Paz, senior analyst from Aite.

Below are some of the highlights:

• FX retail trading is dominated by self-directed pros (approximately 500k users is US), self-directed amateurs (25M users), and normal investors (55% of US population)

• FX trading has a low barrier to entry for individuals with only about $1000 required to open an account.

• FX trading thrives on economic uncertainty and poor stock market.

• 2009 was a banner year for retail FX trading with over $70B in total volume; trade volumes in 2007 were approximately $34B.

• Industry regulation is growing as volumes increase and more and more non-professional individuals join the ranks.

• The main regulators in this space are CFTC, SEC, and OCC/FDIC.

• “Social investing” is a growing trend driven primarily by this nascent industry and lack of understanding investors have about FX.

• Google and Facebook have entered this space and are poised to help continue these trends and grow trading volumes.