The ranks of firms offering retail FX are set to grow as more U.S. securities firms and banks tap the white-label services of established FX brokers.
Boston, June 28, 2011 – A new report from Aite Group examines the latest trends in retail foreign exchange (FX or Forex) brokerage, with particular emphasis on the white-label market. Written as a business-strategy update for brokers and a partner-selection guide for new entrants, this report identifies the market’s new direction and discusses what it takes to compete. Based in part on a Q2 2011 Aite Group survey of leading brokers, the report profiles 10 broker firms that provide white-labeling services. The report also evaluates the amount and origin of global online traffic to broker websites and the popularity of new financial products now offered by many FX brokers.
A year since the passage of the Dodd-Frank Act, clear rules for retail FX brokers and banks have opened the door to the institutionalization of FX in America. These changes are significant, and may lead regulators in countries like China, India, and Brazil to adopt competitive retail FX rules and, in the process, expand the global retail FX market beyond anything we have yet seen.
“Banks are beginning to understand that a retail FX division thrives on the volatility created by economic uncertainty, and can prove a revenue hedge to their loan portfolios,” says Javier Paz, senior analyst with Aite Group and author of this report. “New entrants that take the white-label route go to market quickly without bearing the costs of technology development. The key steps are to choose the right white-label partner, pick the right mix of FX products, and leverage the bank’s strategic marketing channels.”
Brokers profiled in this report include Dukascopy Bank, FX Solutions, FXCM, FXDD, Gain Capital (Forex.com), GFT, Interbank FX, MIG BANK, OANDA Corporation, and Saxo Bank.
This 78-page Impact Report contains 46 figures and two tables. Clients of Aite Group's Wealth Management service can download the report.