Expansion Shouldn’t Strain Brokers: An Introduction to Offering Multi-Market Access
Regional broker-dealers are seeking to offer uncomplicated access to multiple markets. End-users have a growing expectation to invest in securities traded on the NYSE, Hong Kong, or German stock exchanges at the same time, and have multi-currency accounts within one platform.
What was once considered optional is now becoming a necessity for brokers who want to retain clients and stay competitive.
Adaptation is not rocket science for brokers, however, the implementation can be a different story.
Brokers suddenly need to support differing trading hours of regional exchanges, and upgrade and integrate technology to allow for multi-currency deposits within a single account—all while adhering to local execution and settlement rules.
This blog aims to provide a valuable introduction to offering multi-market access for brokers, with key considerations of this approach.
Data, technology, and operational requirements
Let’s start by expanding on some of the key challenges we highlighted in the introduction.
- Traditionally, brokers were largely confined to single-currency, single-market platforms.
- This meant that if a broker wanted to offer trading in both US and European stocks, for example, they would need to operate separate platforms or maintain multiple accounts.
- Each market required its own infrastructure and data feeds.
Multi-currency support
Each market operates in its native currency, and traders need to hold balances and trade in multiple currencies within a single account, while brokers need a reliable solution for commission calculations, currency conversion, and settling trades in real-time.
Cross-market connectivity
Multi-market trading demands seamless connectivity to exchanges around the world, each with its own technical infrastructure, market data feeds, and regulations. Establishing and maintaining these connections can be resource-intensive without the right architecture in place.
Compliance with diverse regulations
Brokers need to navigate a web of international regulatory frameworks, as each market enforces its own rules regarding execution rules, reporting standards, and trading procedures.
Multi-asset portfolios
Trading platforms require different user interfaces, with specific widgets for some instruments, such as option chains or a futures ladder to enable trading stocks, ETFs, bonds, options, and futures.
Features addressing these limitations of legacy systems provide a more streamlined and efficient approach to multi-market trading, eliminating the need for separate systems.
The centralized solution for uncomplicated expansion
Traditional approaches to expanding into new markets require extensive custom development, integration with multiple systems, and a great deal of manual oversight.
Platforms like DXtrade XT completely simplify this process by providing a unified solution where multiple currencies and markets are supported from the get-go—no need for integrating multiple additional systems, each with ongoing maintenance costs.
Key benefits for brokers
- Consolidating multiple markets into a single platform removes support costs for additional systems
- Expanded market reach without additional infrastructure
- Improved client offerings boost satisfaction and loyalty
- Centralized currency handling and real-time global market data, backed by DXtrade XT’s built-in risk management tools
- Competitive advantage
What does this actually look like in practice?
It’s all well and good to explain how simple and efficient a centralized approach to multi-market trading is on paper, but how does this actually compare to legacy trading offerings?
| Legacy trading offerings | Multi-market trading with DXtrade XT |
| Limited to trading in a single currency (e.g. USD) | Support for trading in multiple currencies |
| No ability to trade globally OR separate platforms or accounts needed for different markets | Single platform supporting multiple markets |
| Focused on specific regional markets (e.g., US equities) | Ability to trade in various global markets (e.g., US, EU, and Asian equities) |
| Manual currency conversions required | Automated currency handling within the platform |
| Separate data feeds for different markets | Integrated market data from various sources (e.g., dxFeed) |
| Limited instrument types (e.g., only stocks) | Support for multiple instrument types (stocks, ETFs, futures, options) |
| Restricted to marginal trading in specific markets | Flexible marginal trading options across different markets |
| Complex integration with executing parties | Easier integration with executing parties of choice |
| Higher operational complexity for multi-market trading | Streamlined operations for multi-market, multi-currency trading |
| Limited ability to expand into international markets | Enhanced capability to explore new opportunities in global markets |
In summary
Expansion doesn’t need to make or break your firm.
DXtrade XT’s ability to support multi-currency trading and solid, reliable connectivity to global markets means brokers can expand without the complexities that typically accompany such growth.
Brokers can focus on what matters most: growing their client base and increasing their market reach—with peace of mind that DXtrade XT has the operational and technical complexities covered.