Deciding on FX Trading Technology – Traders vs. Accountants
We’ve been noticing an interesting trend in the market lately. Instead of leaving the decision on FX trading platforms to traders, today, CFOs and accountants – who do not really understand trading – are getting the final say.
As a trader, you’d probably jump at the chance of trading with a service that makes you $300,000 of previously untapped profit per month. The only catch is the balance sheet, because to make that $300,000, you may be paying out a $30,000 brokerage fee. In the past traders had a level of discretionary budget to use. Now an expense of this size brings in the accountants.
From the CFO you’ll hear, “I’m not going to pay for an FX trading solution, no matter how much money it brings in.” Why? Because there are “free” solutions out there that only charge the liquidity providers. The word “free” is misleading because you pay for the LP charges in the widened spread – and lose any sense of relationship pricing in the bargain.
Responsible decision-makers should weigh both sides carefully. Today you can install most FX trading services for free and only pay a brokerage fee for actual usage. After a just a few weeks of trading, you’ll know which solutions are generating Alpha and maximizing your profits.