Fazzaco Weekly Digest: Voices from the Industry - Prop Trading; IB vs Affiliate Marketing; Saxo Bank Trading Data for December

Proprietary trading is gaining momentum. Fazzaco recently invited several executives from brokers, fintech firms, and proprietary trading companies to reveal the opportunities or challenges from the perspective of industry experts.

The start of the new year is also a time of high movement within the financial services industry. Last week, several entities such as The Trading Pit, Airwallex, Markets.com​, Elk Capital Markets, and State Street​ announced the appointment of new executives.

Furthermore, many financial services companies released their trading data for December and/or the full year 2023. Notably, Saxo Bank, Interactive Brokers, CME Group​, and other firms displayed positive indicators of growth.

Additionally, Fazzaco is dedicated to assisting brokers in gaining a strong foothold in the forex market and expanding their business. Our inaugural audio article of the year introduces two marketing modes - Introducing Brokers (IBs) and forex affiliates - granting brokers the flexibility to select the most appropriate approach that aligns with their objectives.

Here are the related details, as well as some of the most read forex, fintech, and crypto news pieces and articles from Fazzaco over the past week.

1. Voices from the Industry: Is the Rise of Prop Trading A Disruption or Opportunity?​

Fazzaco highlighted in the recent article "How A Report Shows FX is Reviving in Proprietary Trading" that, starting in 2023, various factors, including increased trading costs and shifts in regulations, led proprietary trading firms to gravitate toward the forex market. Consequently, currency trading has experienced a resurgence within the proprietary trading sphere. Acuiti's Q4 2023 Proprietary Trading Report indicates that 45% of firms engaged in proprietary trading, and offering currency trading, plan to significantly increase their involvement in this market during 2024.

Given the burgeoning momentum of proprietary trading firms, will traditional forex brokers face substantial competitive pressure? What delineates the advantages and disadvantages between prop firms and brokers? What defines the regulatory landscape and risk management strategies within proprietary trading? Can prop firms supplant traditional brokerage entities in the forex market? To address these inquiries, Fazzaco invited several executives from brokerages, fintech firms, and proprietary trading entities to reveal their real voices of the industry from multiple angles.

2. Listen to the Article: Kick Off the New Year with a Bang: IB vs Affiliate Marketing for FX Brokers

The new year will bring new start-up brokers to the forex business, who want to carve out a niche in this highly competitive market. Marketing is vital for the broker's positioning, as they need to build their reputation and attract clients to take the first step in expanding business. 

Therefore, in our first "Listen to the Article" in 2024, let's explore how to leverage the two marketing modes, namely Introducing Brokers (IBs) and forex affiliates, and how we can kick off the new year with a bang.

3. Vida Markets Joins Hands with Cricpayz to Enhance Payment Solutions​

Vida Markets, a Dubai-based renowned FX & CFD broker, has formed a partnership with Cricpayz, a Payment Service Provider (PSP) in India, to cater to traders' demands for flexible and secure payment options.

Cricpayz, famous as an Alternative Payment Method (APM) for enhanced financial flexibility, supports popular methods like UPI and Net Banking

4. Darcy Corbett Rises to Head of Digital Marketing at The Trading Pit

Fazzaco learned that The Trading Pit, a Cyprus based global multi-asset prop trading firm, has elevated Darcy Corbett to its Head of Digital Marketing.

Based on his LinkedIn profile, Corbett joined the prop trading firm in March 2023, as Product Owner. Before The Trading Pit, he spend one year and five months at an online trading services provider, FXGT, as Business Analyst.

5. Saxo Bank Sees Double-Digit Growth in FX Trading Volume for December 2023​

Saxo Bank, the Copenhagen-based online trading and investment specialist, has released its trading data for December 2023, reporting a total trading volume for the last month of the year of $369.5 billion, 1.8% higher than $362.9 billion in the prior month and 11.1% lower than $415.7 billion in the same period of 2022. Average daily volume (ADV) was $17.6 billion, up 6.7% MoM (November 2023: $16.5 billion) and down 6.9% YoY (December 2022: $18.9 billion).

More specifically, FX trading volume for the month totaled $134.8 billion, increasing 13.7% compared to $118.6 billion in November 2023 and increasing 11.1% compared to $121.3 billion in December 2022. ADV of FX rose by 18.5% from $5.4 billion to $6.4 billion on a MoM (month-on-month) basis, an increase of 16.4% compared to $5.5 billion in the year-ago month.

6. Forex Broker Fortrade's Belarusian License Revoked

Fazzaco learned that Fortrade Ltd., United Kingdom-based online Forex and CFD trading solutions provider, has been removed from the Republic of Belarus' regulatory register.

Fortrade operates in Belarus through its local unit, LLC Fort Securities BLR, which secured the local authorization five and a half years ago.

7. eToro Germany Announces Transfer of Crypto Assets to Tangany for Custody​

eToro Germany announced on Monday (January 1, 2024) that the custody of crypto assets for eToro customers in Germany will be handled by Tangany GmbH (Tangany), a white-label blockchain custody platform based in Germany and regulated by BaFin.

Effective January 21, 2024, all crypto assets held in custody by eToro Germany will be transferred to Tangany for custody and eToro Germany will no longer provide custody services for crypto assets.