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Adapt and Scale Your Brokerage: Delve Deep into Your Client’s Trading Activity using Business Intelligence Tools

Welcome to part 4 of how to adapt and scale your brokerage. This week we are ‘delving deep’ into scaling your brokerage by visualising your client’s activity using Business Intelligence tools.

When running a brokerage, it's easy to apply Pareto’s Law and assume that 80% of your clients lose money and 20% make money. But do the following questions cross your mind?

  • How much are you actually losing?
  • Are scalpers and latency traders taking you to the cleaners?  

By using a Business Intelligence tool, you can delve deeply into all your clients’ trading activity by managing your exposure risk and Profit/Loss.

 

Are Business Intelligence tools worth the money?

Business Intelligence tools can provide you with invaluable live data and up-to-date key metrics. 

No matter how much in-house work you have put into them, Excel spreadsheets are not an efficient way to manage you risk. The function of spreadsheets makes them incapable of providing the complete set of data that Business Intelligence tools can. 

What information are you missing out on?  

How could this information impact your trading operations? 

Your spreadsheet doesn’t understand scalping and can’t help to identify where toxic trades are coming from. With a Business Intelligence tool that is developed specifically for your needs, you can see whether your company is sending toxic flow to their Liquidity Providers and drill down into live data to get a thorough understanding of where you are currently making money and where you could be increasing your profits.

How to get started with a Business Intelligence tool

Are you thinking a Business Intelligence tool would be good for your business? Great! Read on to find out the next steps to finding your perfect fit.  

We recommend you look at 5 must-have components in a business intelligence tool comparison:  

  1. Flexibility
  2. Simplicity
  3. Responsiveness
  4. Specific tailoring to FX Brokers needs
  5. Easy setup and Integration

Not only are the components of your chosen software important, but the actual software provider is too. 

Ask yourself the following:   

  1. Are they a reputable vendor?
  2. Do they offer a strong level of support across all time-zones?
  3. What is the total cost of running the software?
  4. Are they a breeze to work with?

 

What is an example of a good Business Intelligence tool?

The Gold-i Visual Edge business intelligence tool and risk management software was first launched in 2015. Providing brokers and their dealing desks with real-time risk monitoring, exposure tracking, Profit/Loss analysis and historical A book/B book what-if analysis, Visual Edge can save brokerages thousands of dollars in trading operations by understanding and visualising their data clearly. 

Visual Edge has gone from strength to strength in the years following its initial launch and is now actively used by brokerages globally. Some brokers have estimated they are saving over £50,000 a month. Watch the Visual Edge Demo to see how Visual Edge could work for you.

If you are looking to scale your brokerage, you need to maximise your profitability. To do that, you need to fully understand your numbers in a real-time view, down to every single one of your clients and trades. 

Business Intelligence tools will provide you with 3 major benefits; a greater understanding of your risk and exposure, the ability to optimise your profits, and a simple way to meet regulatory reports. 

Delve deeper and you will never look back – contact us for a free demo today.