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Delve Deep into Your Clients' Trading 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 investing in a business intelligence and risk management platform, you can delve deeper into your clients’ trading activity by managing your exposure risk and Profit/Loss.

 

Are business intelligence platforms worth the money?

Business intelligence platforms 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 your 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 risk management solution 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 solution?

Are you thinking that such a solution would be perfect for your brokerage? Great! Read on to discover tips on how to find the best fit.  

When looking into the different solution on the market, we recommend you ensure they include the 5 must-have components:

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 it is imperative to do your due diligence on the software provider of the solution and make sure you ask yourself the following:

1. Are they a reputable vendor?

2. Do they offer a strong level of support across your particular time-zone?

3. What is the total cost of running the software?

4. Are they going to be a breeze to work with? 

 

What is an example of a good business intelligence and risk management solution?

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. 

Gold-i's Visual Edge and Visual Edge Lite will provide your brokerage with 3 major benefits:

 

1. POWERFUL - Interactive analysis and visualisation, extendable by custom modules, fully address client requirements.

2. SCALABLE - Enterprise-wide scalability. Deployed either on-premise or SaaS over a public or private cloud.

3. FLEXIBLE - From in-depth analysis of complex data sets to making sense of big data Visual Edge delivers invaluable insights.

 

This will allow you to have a greater understanding of your risk and exposure, have the ability to optimise your profits, whilst offering a simple way to meet regulatory reports. Visual Edge has gone from strength to strength in the years following its initial launch and is now actively used by many popular FX brokerages globally, with some of our clients estimating they save over $50,000 a month.

 

 

Gold-i's Visual Edge and Visual Edge Lite help investment banks, brokers, hedge funds and other financial firms to understand the essence of data that drives their business. Watch the demo to see how Visual Edge could work for you.

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

About the author

Tom Higgins

Tom Higgins

Tom Higgins is founder and CEO of Gold-i with experience in financial technology spanning over 25 years. With an in-depth knowledge of the trading technology industry, Tom set up Gold-i in 2008 after spotting a gap in the market to enhance the FX trading process for retail brokers. As the inspiration and driving force behind Gold-i, Tom has played a major role in disrupting the retail FX market, giving opportunities to brokers across the globe and has now extended the firm’s focus to the institutional market, using his market insight to continue to drive innovation.