The Forex market is an increasingly important part of your brokerage’s operations as a growing business. However, maintaining such a large and varied client base presents unique challenges in managing traders’ accounts. A recent study suggests that while many brokers using the Metatrader 4 (MT4) platform use third-party software to aid their operational processes, few maintain a CRM system for their clients. Given the importance of a good relationship with customers, this should come as no surprise. In fact, it makes sense from both sides: why would a broker commit valuable technical resources towards solving account management problems when they can outsource these tasks cheaply? As such, outsourcing Forex CRMs has become a popular option for brokers.
What is Forex CRM?
A CRM for Forex brokers is a suite of software tools brokers can use to manage relationships with their traders. Most CRMs, both in the forex and other industries, are web-based platforms, making it easier for clients to access their accounts from any computer or mobile device connected to the internet. The primary goal of a CRM is to make account management simple while still maintaining security standards. Organizing clients’ trading activity, allowing them to update personal profile data, providing complete customer support, and moving towards increasing transparency are all part of this mission.
What Forex CRM does best?
Forex CRMs excel at two specific tasks: updating account profiles and processing trades based on client requests (or withdrawals). Account updates may include changes in the trader’s trading style, preferred currency pairs or timeframe, email address. These are among the most common updates done by traders to their accounts. Some Forex CRMs also allow brokers and traders to communicate directly via a web-based instant messaging system. This saves brokers and traders time and money by cutting out middlemen (i.e., phone support). Trading requests offer another service that many brokers find invaluable: allowing clients to place trades through their Forex CRM without having to call the broker or open an MT4 terminal window on their computer screen.
Advantages of Forex CRM:
Improved account security: With all requests sent through the FX CRM, there is no chance of fraud on the client end; they only need to put in their login credentials for the system. This reduces credit card fraud and identity theft by having a central place to verify requests.
Greater efficiency: By allowing clients to request withdrawals and change their preferences without calling you, you can process requests more quickly while complying with your internal regulations; this increases revenue and saves time.
Data collection: As brokers collect and aggregate information about their clients’ trading behavior, they can use it to make proactive market forecasts. They may be able to drive better results through such data mining.
Increased transparency: The more transparent you are with your clients, the more comfortable they feel opening accounts and transferring assets with you. Using a CRM for Forex allows all communications to be sent openly so that traders can access them at any time.
Cost-efficiency: Outsourcing to a third party removes the burden of setting up and maintaining an online system to manage client accounts. Many brokers have found this is worth it for the money savings alone, even if they also need to pay monthly service fees.
Risk management: Risk management is a significant part of being a broker, but it also requires staying on top of shifting regulations. Forex CRMs have staff that are constantly monitoring the market and legal documents to ensure that your practices stay compliant.
There are many advantages to using Forex CRM software for your brokerage, including increased transparency, efficiency, security, and customer loyalty. Whether you choose to outsource the service or do it in-house will depend on your company’s size and needs. However, most brokers agree that this kind of system is invaluable for maintaining relationships with trading clients.