Hottest trends in the Chinese Forex market in 2017-2018

/Hottest trends in the Chinese Forex market in 2017-2018

Blog Post by: Adinah Brown Adinah (1)

Adinah Brown is a financial journalist whose background includes professional marketing consultancy and support in a range of commercial settings, including corporate industry, government and non-government organizations. At Fintech software solutions development company Leverate, Adinah is responsible for providing commercial information on the company’s full range of enterprise solutions for retail investment brokerages, as well as providing valuable research and editorial material to the benefit of the entire electronic trading industry’s  leadership. 

Leverate Technological Trading Ltd

Hottest trends in the Chinese Forex market in 2017-2018

In the past some of the hottest trends to come out of China have included Kung-Fu masters, Yao Ming, the delicious dim sum and big fat pandas- admit it, you want one badly. But as China’s financial economy continues on its path of emerging into the modern era, we take a look at the hottest trends in the forex arena to look forward to over the 2017 to 2018 financial year.

1. Advanced Technologymoney fair shanghai1
Arguably the most exciting development. This relates equally to the advanced software used by brokers as much as it does to the programs used by traders
Truth: Behind every great broker, is an even better software system. Your typical forex broker has access to back end technology tools that make client management a whole lot easier. Brokers, or more accurately their retention and sales staff, now have the means to develop channels to control (e.g. to monitor their client’s trades) and take full advantage of available resources (e.g. offer more instruments or different trading techniques). A complimentary addendum to these improved trading platforms and management tools, brokers can also use automated marketing funnels, such as Optim8. Developed by Leverate, Optim8 synthesizes the broker’s trading platform and CRM, into a marketing tool that is highly intelligent, less costly and ultimately achieves higher acquisition rates.
No question, the tools for clients are exciting. Social trading in particular is becoming increasingly popular and is taking a bigger market share in China. A relatively new concept, it offers an easy to use, hands-on experience that makes forex trading more interesting and enjoyable. Still aside from this, there appears to be an almost constant and steady flow of user-friendly plug-ins arriving on the market that makes trading easier and well, just more fun.

2. Educational tools
Over the past year, as regional exchanges have become tightly regulated, many members were forced to close shop. But the fallout from doing so, has led to a surge in educational tools, as they transitioned into offering pro-investment educational tools. Educational tools that are now accessible and are only likely to increase in their availability include live broadcasting apps/Wechat platforms that achieve a huge online flowing. These mediums also lend themselves as communication tools for brokers to get in touch with traders, and likewise traders can source information far more easily and quickly.

3. Better services
China takes care of its traders. Forex traders can expect to be well treated in China, not only because the market competition is fierce, but also because the traders themselves are savvier. They know their rights and the power of a licensing authority to protect their interests. As a resource traders are able to turn to government agencies such as the Economic Crime Investigations Unit to protect their consumer interests. Being able to achieve instant feedback and equitable settlements in cases of a dispute, helps to instil a sense of security within traders.
Over the course of time, brokers have established a solid foundation and have made qualitative contributions to the industry. This has resulted in the forex market being far more mature now, than what it was ten years ago.

5. Appeal to western companies
When China underwent humungous growth in the 1990’s and 2000, posting annual growth in ridiculous double digits, many western corporates seized the opportunity to take their piece of this profit pie by penetrating into the Chinese market. To date there are already dozens of existing western brokerage companies in China. Predominantly they are based in the major cities of Beijing and Shanghai, but increasingly they are expanding into second, and even third tier cities, such as Xi’an, Zhengzhou, Chongqing, Wuhan and Changsha for example.

6. The success stories
The first generation of forex brokers, marketing and technology providers, undoubtedly had a hard time establishing their services. However as the forex industry has matured in China, so to have brokerage services become more professional.
Leverate, a world leading investment trading technology provider, first entered the Chinese forex market in 2014 and initially experienced a number of heavy setbacks. At that early stage, it was not fully realized that adaptation to the Chinese market went way beyond the translation, but also included other differences in hosting, execution and marketing just to name a few. Today, Leverate has helped over 40 brokers in China and the wider APAC region to either launch their own brokerage or enhance their services to escalate to the next level of operation. In the process of achieving this Leverate executives learnt that they had to adapt their offerings and differentiate in order to address real needs and pressure points that are unique to the Asian market. An example of this was a specially designed IB system, the ‘LXIB Manager’, that addresses the management demands of the IB oriented Asia market.

It hasn’t all been smooth sailing, but the benefits of operating in the Chinese market are enormous, with every expectation that these trends are only likely to grow.

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