Why Your Brokerage Needs Multiple Research Providers
Nowadays it becomes essential to provide traders with actionable insights to engage and promote activity on the platform.
The global online trading market is estimated to reach $13.3 billion, growing at a CAGR of 6.4% from 2022 to 2026. Millennials and Generation Z’s aim to be long-term participants in the financial markets, as they understand the potential of trading. Despite a growing number of people wishing to participate in the financial markets, 40% of traders quit within the first month. The reason is failure to make the most of the available opportunities because of a lack of knowledge of market behaviours and expertise to predict price movements.
This is where you, as a broker, have a key role to play in your customer’s journey. It becomes essential to provide traders with actionable insights to engage and promote activity on the platform. Timely delivery of insights, targeted to the experience level of the trader, is paramount for them to make informed trading decisions. Here’s a look at the different types of research you can provide your clients to encourage them to continue trading.
Signals
The most elementary type of research is price chart analysis or technical analysis. Signals help traders pick entry and exit points with greater ease. Analysing charts with the right set of indicators can be tricky for beginners and sometimes time-consuming even for more experienced traders. Therefore, signals that are aligned with a trader’s financial goals have the power to propel activity on your platform.
Forecasts
Making daily and monthly forecasts are difficult and overwhelming unless the trader is experienced. Brokerages need to assist their clients with this information to help them plan their trade and then trade their plan.
Emerging Trends
Trading is the art of predicting the direction in which the market is moving, and profits belong to those who do it before others. Identifying trends and reversals requires recognising candlestick patterns and combining these indicators with market events can help traders make the most of trading opportunities. Research that uncovers this is highly valued by traders of all levels.
Daily Market Reports
Daily reports include an overview of popular markets, hot opportunities, and expected market reactions. These are highly beneficial for trades who trade on a clock and want to make quick but informed decisions. They also provide your clients with an opportunity to explore more markets.
Volatility Analysis
Volatile markets are favourable for traders but recognising the available liquidity and whether there is enough volume to allow them to generate profits needs an expert’s eye. Sharing such opportunities can help traders feel more confident even when markets are erratic. Also, helping them decide the stop loss and take profit limits can make risk management more convenient for them.
Customer Analysis
An essential part of managing a brokerage is customer segmentation to provide reliable and usable information to everyone. Research tools that monitor customer activity, trading style, and risk behaviour enable brokerages to support their clients better by correctly targeting the audience for different research reports.
To Sum Up
Macroeconomic data, news updates, price charts, and indicators, combined with trader sentiment and risk assessment, can all be decoded by experts who understand markets and their movements. However, hiring experts may not be cost-effective. Brokerages can leverage advanced technology that helps to uncover previously undetected trading opportunities.
Contact us now to learn how Autochartist’s comprehensive toolset can enable you to share deep research and analysis to provide customised trading insights to your traders and capture more customers with unique market updates.
