Market volatility usually refers to events like IPOs, NFP announcements, as well as economic and political fluctuations. A pandemic, though? That’s market-redefining. The coronavirus pandemic has fundamentally changed the forex industry with the most glaring change being what traders expect from their broker.
With more time to spare and a lot more interaction with their trading platforms and brokers, traders have been able to explore more layers of their trading experience. A basic trading package will no longer do the trick, as traders are becoming more sophisticated, looking for the tiniest competitive edge that will help them perform better.
The pandemic has torn down the barrier between trader and broker, exposing haphazard and below standard service. Let’s take a look at what brokers will have to attend to post-pandemic.
Accessibility Is No Longer an Option, It’s a Necessity
Brokers used to “wear” their mobile and desktop trading options as badges of honor. In a post-pandemic world, the question is no longer whether a broker is offering its services in a digital form, but the level of quality and accessibility it’s able to offer.
Fast websites, top-of-the-range platforms, and a mobile-optimized trading experience can literally be the deciding factor for traders when choosing between brokers. It’s important to note that when we talk about the trading experience, we don’t just refer to trades, transactions, spreads, deposits, and withdrawals.
A major component of the trading experience is customer service. Traders demand instant, personable and actionable communication with their broker. Unanswered emails, generic chat responses, and lounge music while waiting on the phone will no longer be acceptable.
Traders are now understanding the importance of fast, efficient, and timely response to the market and if their broker becomes the reason their questions are not answered or their problems are not resolved, they will quickly look for the broker that moves at their own speed.
Range of Options
During the pandemic, some industries have died whilst others have skyrocketed. Let’s give some examples. Airbnb used to be a great option to invest in pre-pandemic. With everyone being locked at home, that is no longer the case. On the contrary, streaming platforms like Netflix, e-commerce platforms like Amazon and payment providers like Klarna have exploded on the trading scene.
What can we learn from this? Those traders need a broker who is able to respond to the fluctuations of the market. They need access to the instruments and markets that are trending and can give them the best opportunity to succeed.
Millennials Need Social Elements & Trading Education
A study shows the under-34 crowd has increased its trading during the pandemic at a rate far higher than that of the broader population. How can we explain this pattern? Access to the market has never been easier, millennials and gen Z have ample time and above all, they are at a point in their life where they are not professionally settled.
Getting into trading presents an opportunity to create a new revenue stream and explore this path. What it also presents though, is a new state of affairs for brokers. This younger demographic brings its own set of demands and expectations.
The under-34 crowd enjoys the social elements of trading, wants instant access to trading from all devices and browsers and wants to educate themselves on the industry in a diverse way. Brokers that are able to leverage features like copy trading and provide extensive training material will see more engagement.
Younger traders want to educate themselves on their own time and alternate between different mediums – from blog posts and webinars to Q&As and news. The brokers that will be able to supply their younger audience with the best material will have a bigger chance of keeping them in their ecosystem.
Security Above Everything
The pandemic did increase interest in forex trading but it also increased cyber threats, breaches, and scams. Australia’s regulator (ASIC) found reports that misconduct rose 20% during the first three months of the pandemic. Similarly, COVID-related forex scams have been frequently reported during the past year.
Traders are no longer taking the security of their funds, data and personal information lightly. There is a turn towards regulated brokers and traders are now looking into tech, security measures and policies of their brokers. Being able to communicate these policies to prospective traders will be key for brokers post-pandemic.
Axiance is a New Age Broker
Being born in such challenging times has been a blessing in disguise for Axiance. Studying the shift in attitude and trader appetite, the Axiance team has put together a very modern, agile and avant-garde offering. The Axiance platform is expected to go live in summer 2021. Stay tuned.