Devexperts, a software solutions provider for investment firms, has shared insights on evolving trends in the financial industry for the upcoming year. The company has noted significant shifts in broker/dealer/client dynamics, which are expected to continue into 2024.
Devexperts Released Its 2024 Forecasts for Financial Brokerages
A key prediction for 2024 is expanding brokers’ services beyond just access to the US market. Brokers will likely offer global stock and ETF trading and diversify into various asset classes. This shift is partly a response to declining broker revenues due to the push for zero commissions during the pandemic and increasing operational expenses.
Brokers are now focusing on meeting the demands of their discerning users by offering a more comprehensive range of trading options. Brokers are also adapting to changes such as the rising volume of Options trading over Futures, increasing regulatory compliance, and the volatile nature of cryptocurrency markets.
There’s a growing demand from traders for access to diverse global markets and multi-asset trading, leading to a preference for 24×7 markets in the United States. This demand shapes how brokers adapt their offerings in the new year.
Michael Sprachman, the Director of Exchange Traded Solutions at Devexperts, notes that clients seek more control over their businesses. In response, Devexperts is offering a hybrid model that combines the purchase of solutions with in-house development, allowing for rapid market entry and cost-efficiency.
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The model supports comprehensive solutions for execution, clearing, and back-office operations, helping brokers focus on core business aspects.
Devexperts anticipates a trend towards more structured changes in the industry, particularly in account structures between brokers and end destinations. There is a move from omnibus relationships to disclosed relationships.
Looking ahead, Devexperts aims to create an ecosystem enabling brokers to maintain ownership of their businesses. This includes building a marketplace and fostering collaborations with various counterparties.
In a related development, Devexperts has partnered with UK-based fintech firm FX Blue to introduce a new trading solution for contracts-for-difference and spread-betting brokers. This collaboration integrates DXtrade’s backend infrastructure with FX Blue’s customisable web and mobile interfaces.
The partnership offers brokers flexibility in choosing trading platform UIs for clients while efficiently managing operations through DXtrade’s backend. Devexperts and FX Blue’s alliance underscores their commitment to providing comprehensive software solutions that aid brokers in expanding their business and managing risks effectively.
