Interview with: Moshe Rubinstein, CEO of FX Consultants Group
5 years experience in building FX Brokerages
1. What happens in the FX industry in the Arab world over the past year in means of growth, new brands vs existing companies (increase\decrease in funnels)?
Unfortunately, the past year has actually seen a large number of FX Brokerage
closures and suspended accounts. These significantly outnumber the new brands which have risen in their place. Primarily these brokerages were licensed by Cysec and were owned by Arab nationals who targeted the Arab trading industry. This is actually following a recent trend whereby Arab brokers are still experimenting in location and licensing in an attempt to keep ahead of the strict legislation in the majority of Arab states.
The Arab trading world is significantly behind the rest of the world in actual awareness of retail FX Trading, which actually serves as both a challenge and opportunity for Start-up brokers.
2. Is the forex industry in the Arab world strong as everyone thinks?
Depending on how we define how an ‘industry’ is built, the answer to this is either a very big yes or a very big no. According to the conventional understanding of an industry, we are talking about a regulated market with government legislation and taxable trade and this is absolutely weak across almost all Arab countries. However, on the flip side of that coin, the actual ‘trading industry’ is increasingly strong and gaining a reputation as such.
Some Gulf States are becoming known for their large volume individual trades, far larger than would be expected in Europe from a home trader. Winning big, losing big. Less wealthy Arab countries are also seeing more and more traders registering smaller trades. Jordan is a prime example of this growth since 2009 when FX trading became illegal and inadvertently led to a rise in trading activity.
3. What characterizes do you find in the Arab Forex companies?
In both of these opposite trading trends, the common factor is a notable difference in mentality from their western world trading counterparts. Arab nationals are more adverse to trading strategies which would been seen as high risk and gambling. This in part also plays well into non-regulated brokers hands when looking to attract traders to deposit funds.
Marketing to this mindset is a strong business strategy for any Arab Forex Companies.
4. Can you elaborate with numbers what the value of the traders, how many brands work in the Arab audience, what are the most popular software and platforms that your customers use.
All of the more common and respected FX brokers you would be familiar with have Arabic trading desks and sales departments. Alpari, Ironfx & FXCM are a few examples. I believe that these brands can afford to play off their global reputation in the financial industry which commands respect and instills confidence for first time Arab traders.
5. What are the best marketing channels in the Arab world?
Undoubtedly the single best marketing channel for Arab traders is lead calling. As it is with anywhere else in the world. The power of speech in a one to one conversation is still unrivalled. The context of these conversations will invariably be very different from ones you might overhear taking place in Europe with the focus being on legal security rather than risk of loss.
6. What are the differences between Arab forex traders to European traders?
As mentioned earlier, while the industry is still quite new in the Arab states, there is a tendency to trade with a gambling mentality rather than an informed strategy. For a new broker, this presents a wealth of opportunity.
7. What are your best 5 tips for new forex brands?
I only have one tip for new start-up FX Brokers and that is to consult with experts before you do anything. This might sound like a way if pricing money off new companies before they have end gotten going, however I will guarantee that you will save significant amounts of money on trial and error. The costs involved in employing consultants with their finger on the pulse will certainly outweigh the loss of putting a step wrong on the path to building your brand.
8. What is your company’s uniqueness?
Our ability to quickly and effectively get your brokerage up and running within two months including your company formation and banking, payment solutions, branding, website, traders cabinet and CRM all rolled into one helpful start-up package for brokers. We respect both the mental and financial investment undertaken to start your own brokerage, and we are by the broker’s side every step.
The post Moshe Rubinstein, CEO of FX Consultants Group appeared first on GBO - B2B Financial services for FX, Binary Option, eGaming and online business.