Safe to say, the fintech sector has changed many of our lives. Both from a personal and business perspective, fintech is infiltrating multiple sectors and verticals. It’s simplifying how we do things, speeding up processes, and cutting costs across the board. But how is it impacting the forex sector?
Progressive web apps
A progressive web app is a website-based application. It uses typical technologies such as HTML and CSS but works on any browser. Additionally, they work on mobiles, tablets, and desktop computers. A PWA doesn’t require downloading like an application, nor does it need any special software or settings to function. The idea is it works efficiently while providing an excellent customer experience similar to an app but without the need to install it. Some companies also publish the PWA to the Google or Apple store, but this is not necessary.
PWAs are great for those interested in the forex sector. They allow even those who don’t want to download an app, to enjoy trading via their platform. Some statistics show that PWAs increase mobile traffic, increase conversions, and also extend the amount of time spent on a site. For those running a forex brokerage, this means increased revenue and clients that will keep coming back for more. It’s a good idea for forex brokers to invest in an app, and a PWA to ensure a satisfactory experience for potential customers.
Mobile focus in the forex sector
As of 2021, there are an estimated 6.3 billion smartphones in the world. The countries with the highest number of smartphones include China, India, and the US, which are also the most populated. The number will increase yearly, reaching 7.5 billion by 2026. This data means that the vast majority of the world has access to the internet via their device. In addition to this, access to the internet is increasing as it becomes faster, more widespread, and lower cost.
We have already started doing most things via mobile. Banking, communicating, work, and even buying a house can all be done via mobile. The forex sector is soaring due to this increase in mobile usage as it becomes more accessible to more people. Traders can download an app or visit a site, educate themselves and trade without the need for a third party. For these reasons, and more, brokers must have a solid mobile presence. Effort and investment should focus on secure, efficient, and user-friendly systems to better facilitate traders’ demands.
Payments
The evolving payments sector has drastically helped the forex sector increase its client base and profits. The introduction and development of new methods have vastly opened up the field and resulted in increased numbers of traders.
Another bonus of using different payment methods is better security. Digital wallets, online payment processors, and various other electronic methods have typically invested a lot in security. Encryption, anonymization, and the integration of technology like biometric payments are just some examples. This helps consumers increase their trust in online payments, making it more likely for them to transact in this way.
Additionally, allowing traders to deposit in cryptocurrency means that those without bank accounts or credit/debit cards are also empowered to trade. It adds another layer of security and anonymity for those that wish to trade privately and safely.
Forex brokers and those in the forex sector should offer a selection of reputable and popular payment methods. The best payment processors and partners require that the company is licensed in its applicable jurisdiction. It’s a good idea to offer wire transfers, credit and debit cards, and at least 3-4 popular payment providers. This increases the number of consumers you can reach.
Blockchain in the forex sector
While we aren’t quite there yet, in the next year or so we could see blockchain forex exchanges emerge. Rather than using cryptocurrency, the platform will use the technology to run its operations. Fiat transactions, deposits, positions, rates, withdrawals, and even identities are stored on the blockchain. One benefit of blockchain is that it’s immutable and tamper-proof.
For those running forex brokerages and their customers, this is excellent news. It will help with compliance and in resolving any disputes that may arise. It can also help with regulatory matters including managing licenses, renewing paperwork, and submitting timely and accurate reports.
Contact Fast Offshore
The forex sector is the world’s largest and most liquid financial market. Thanks to fintech and various emerging technologies, it’s become far more interesting and accessible to regular people. This means that the potential client base is vastly increased, meaning more opportunities for entrepreneurs like you. Just remember, before you start introducing various technologies to your platform, make sure it’s legal in your jurisdiction. Also, be sure that you hold the right license, and that you’re compliant with any regulations.
Forex brokerages are a regulated sector, and as such, there are rules you must abide by. If in doubt, you can always speak to Fast Offshore who have decades of experience in the forex sector. We can help you incorporate a company, get a license, negotiate with payment providers, and open a bank account. Our team of experts can also assist with tax matters and compliance in whichever jurisdiction you are based in. The path to success will only be smooth if you take the advice and guidance of a professional. Ideally, one who has your best interests at heart. Contact Fast Offshore today!
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