Liquidity provider and prime brokerage firm Finalto
recently released a comprehensive guide to help retail brokers navigate the
complexity of marketing to retail investors while adhering to regulatory
standards. The guide emphasizes the importance of striking a balance between
catering to digitally savvy retail traders and maintaining relationships with
traditional institutional clients.
Finalto’s Broker Series delves into the complexities
of marketing to a rapidly evolving audience of retail traders. According to the
company, retail investor activity in 2021 accounted for nearly 25% of the total
trading volume in the equities market. This surge in retail investor activity has reshaped
the trading landscape with the advent of digital platforms. This presents
opportunities and challenges for brokerage businesses.
Engaging Retail and Institutional Clients
By understanding the unique preferences and regulatory
requirements of different demographics, brokers can design their marketing
efforts to effectively communicate with diverse audiences. Finalto highlights
the significance of crafting cohesive brand identities that resonate with both
retail and institutional clients.
Klelia Orphanidou, the B2B Head of Regulatory
Compliance at Finalto, mentioned: “Compliance in marketing isn’t just
about ticking boxes and avoiding penalties. It’s about building a culture of
responsibility and fostering long-term relationships and brand loyalty.”
Last year, Finalto launched a new addition to its
Broker Series: the Liquidity Whitepaper. This document delved into the
intricacies of liquidity provision, offering invaluable insights for brokers
and traders alike. At the heart of Finalto’s liquidity guideline is bespoke
pricing.
Informed Decision-Making
Chief Analyst Neil Wilson emphasizes that liquidity
provision isn’t a one-size-fits-all model. Instead, it prioritizes tailoring
pricing to meet individual client needs while ensuring access to a diverse and
secure liquidity pool. By narrowing spreads and utilizing skewed price feeds,
Finalto aims to provide optimal pricing that aligns with clients’ trading
strategies.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
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