Forex CRM Systems
Your Brokerage’s key to Problem Resolution


How Forex CRM Systems Solve Issues for Brokerage Firms

The retail FX industry has always been dictated by advancements in technology that brokers harness for their operations. Despite the constant push for innovation however, there remains a number of key pain points brokerages must deal with, namely in terms of technology.

With the retail industry already at a crossroads in 2023, the emphasis and premium on fluid technology stacks has become even greater heading into year’s end. Of course, what obvious problems do not always have easy solutions, with much of the industry facing declining revenues, increased competition, and various headwinds.

The following list includes the four most common technology constraints facing retail brokers today.

Deploying a Quality CRM

CRM technology has dramatically improved in recent years and evolved into a mandatory requirement for retail FX brokers. CRMs are a useful tool and ubiquitous element of brokerages, providing a wide range of functionality. This includes empowering enabling to build and maintain strong client relationships, streamline operations, and ultimately drive business growth.

Despite this myriad utility inherent, CRM technology is still woefully underappreciated or underutilized in the FX space. Much of this of course has to do with cost, which is hardly surprising in what has been a rather tough year overall for brokers. However, gutting one’s budget or skimping on a quality CRM is a shortsighted and dubious prospect, given the need to grow or even retain clients.

Another wrinkle to this trend is the growing influence of artificial intelligence (AI). AI has seemingly disrupted every industry overnight, with the retail FX space being no exception. Several studies suggest CRM-related AI could raise global business revenue by $1.1 trillion by as early as the end of 2023.

At this juncture, it is simply impossible to ignore the impact of AI as automation and the benefits these resources provide are essential improvements to any CRM. This facet also underscores the importance of experience as well as forward thinking products that can understand the issues at hand.

Ultimately, there is simply no substitute for harnessing the right CRM technology. FX brokers looking to remain competitive in 2024 will need to strengthen their value to clients and foster improved relationships. This starts and ends with a quality CRM.

Improved Risk Management

Risk management is another area that has proved to be dynamic, a recurring attribute of this list. Every broker is acutely aware of the increased regulatory scrutiny in the FX industry. With this trend unlikely to abate, brokers will have to explore and implement improved risk management and compliance strategies that are increasingly complex.

FX brokers, not unlike all market participants, must adhere to stringent regulatory requirements. This includes Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. Beyond mandatory measures, brokers actually retain a large degree of agency over their risk management software.

Unfortunately, many brokers still utilize basic risk management software and technology. Lacking functionality, these dated UIs can kneecap any operation, providing unnecessary challenges for existing (FX) or newer markets (crypto, etc) on offer. Brokers cannot afford to be caught flat footed and constrain themselves with muted trading conditions.

Platform Differentiation

Seemingly every FX broker claims to have the best trading conditions, instruments on offer, etc. In a cutthroat retail industry, this makes it hard to stand out for obvious reasons, with traders in parallel demanding more from their brokers. Ironically, despite this ubiquity, there is a distinct lack of standardization in the FX industry that poses a series of interoperability challenges.

For starters, the usage of different trading platforms and protocols make it increasingly difficult for traders to switch between brokers. Many traders routinely utilize multiple accounts or brokers, which makes any transition clunky.

Of course, this is hardly surprising given a lack of a single out-of-the-box trading platform in 2023. For years, MetaTrader 4 (MT4) was the bellwether platform on offer. However, this has changed with a heightened development focus from MetaQuotes that’s pushed for wider use of MetaTrader 5 (MT5), which says nothing about countless other in-house platforms.

Handling these platforms opens up several other concerns for venues. Many brokers face issues with clients downloading common platforms like MT4 or MT5, which collide with branding from other rivals. This invariably can lead to client attrition. There is no easy answer to this dilemma but has increasingly been a thorn in the side of marketers.

Data Driven Decision-Making

Information is power and this axiom clearly rings true in the FX space. Whether in regard to client onboarding, management, or retention, managing and analyzing data is paramount to success.

Both traders and brokers rely on sophisticated data analytics tools for several functions. On the brokerage side, a lack of efficient data management is capable of breaking any operation.

By extension, data-driven marketing has irreversibly changed the face of the FX industry. Using innovative technologies, brokers now make regular use of real-time data on accounts, deposits, new leads, and more. These requirements will only increase moving forward, necessitating solutions that point towards the future.

A data siloed approach is probably the biggest and most common trap brokers endure. It is therefore essential to streamline these systems. This has played out in the form of intuitive dashboards, user-friendly interfaces, and more.

Furthermore, sales pipeline management remains one of the important aspects of running a forex brokerage. The right data allows brokers to keep track of different clients, their position in your funnel, and contact methods. Brokers eschewing automated data monitoring and tracking do so at their own peril.