DXinsight: Trading Platform Personalization

DXinsight, our upcoming personalization solution for trading platforms, has been designed to address the most commonly stated pain points of our clients. It provides highly bespoke experiences for platform users, improving user engagement and retention, reducing churn, and increasing client acquisition ROI.

Personalization has been a hot topic in business for more than a decade now. From retail giants like Amazon to streaming mainstays like Netflix and Spotify, the engagement and retention power of personalized recommendations is being leveraged to keep users shopping, watching, and listening.  

As personal finance continues to evolve into a lifestyle product that encompasses banking, trading, and wealth management, the insights from other verticals are becoming all the more important for financial services firms wanting to remain relevant in an increasingly competitive market.  

Neobanks are in the personalization pole position 

Of the financial services mentioned above, neobanks have utilized personalization most effectively. Firms like Revolut are using machine learning to aid clients with cash flow gaps, savings goals, and card spending. 

A recent study of AI-assisted design in fintech applications confirms this view. Neobanks are also using AI to tailor user interfaces based on individual preferences and platform actions, offering dynamic dashboards as well as personalized product and content recommendations. 

Broker personalization is the new frontier 

Brokers, and now funded trader firms, have historically met the problem of high churn rates by casting an increasingly wider net when it comes to client acquisition.  

These firms are now recognizing that personalization has moved from being a value-added feature to something consumers expect of all their digital services. Moreover, the absence of personalization impacts engagement, leading to lower account activity.  

According to BCG, banks that utilize currently available personalization tools are seeing a 20-30% increase in revenues. This is increasingly relevant to brokers that experience high account dormancy rates.  

Robinhood, for example, ended 2024 with 25.2 million funded accounts, but only 14.9 m monthly active users, meaning that 41% of its funded accounts remain inactive. Smaller brokers and other financial services firms face higher client acquisition costs than Robinhood, making it even more important for them to extend the lifetime value of each and every converted client.

According to a Bain & Company report, in the case of financial services firms, a 5% increase in customer retention can yield more than a 25% increase in profits. This is because returning customers generate more revenue over time, causing the operating costs of serving them to decline, while also recommending others to the service in question. 

Introducing DXinsight 

Account dormancy, high churn, and the difficulty in recouping customer acquisition costs are perennial concerns for retail brokers. These issues are only being exacerbated by increased competition from within the industry itself, but also from adjacent segments like digital banking as these providers move to offer their own trading services to customers. 

DXinsight client-facing tools 

DXinsight solves these issues by offering DXtrade users tailored content and instrument recommendations based on their platform activity. Imagine a news feed tailored to your interests, educational content relevant to the current stage in your trading journey, and an instrument watchlist curated according to your risk tolerance. 

By providing informative, analytical, and educational content that feels made-to-measure for the end trader, brokers can enrich client journeys, helping to inform and educate, while aiding in the decision-making process. This helps to keep clients engaged and improving, thus extending the lifetime value of each and every trader. 

Recommendations also broaden client horizons, helping them to see more of the asset and instrument universe without having to navigate away from the platform for a broader view. 

Things like search bar suggestions help platform users find what they’re looking for, even when they don’t quite know how to describe it, but also to find what they don’t know they’re looking for. Both directly translate to improved engagement and increase the likelihood of orders being placed.  

Providing users with its version of the “also bought” and “frequently bought together” recommendations is enormously important. According to McKinsey, recommendations account for around 35% of Amazon’s total sales. 

For traders, “also trading” recommendations can be even more of a motivating factor since successful trades are often perceived to be time-sensitive. This kind of information is arguably more valuable to traders because the actions of others have a direct impact on markets. For these reasons, knowing what others are trading can be a great influence on trading behavior.  

DXinsight broker-facing tools 

On the broker’s side, DXinsight is also a rich source of actionable insights that can help trading businesses take far better care of their clients. The system’s client profiling capabilities allow marketing and retention teams to know more about their clients at scale. This allows them to get much more granular in their client communication strategies. 

DXinsight is able to forecast client churn, which allows brokers to be more selective in how they provide client care, focusing their resources at the right times rather than just sending bulk communications that sit unopened in client inboxes. 

Delivering the right message at the right time can be the difference between a conversion and a drop-off, or between an account being reactivated rather than it lying dormant. Well-crafted messaging that’s tailored to client interests and trading preferences can also create a buzz around market events and inspire trading activity. 

DXinsight is also able to perform complex user segmentation by taking numerous factors into consideration, such as preferred asset classes, profitability, trade frequency, trade duration, risk management proficiency, and more.  

These insights allow brokers to group traders accordingly and manage them in a variety of ways. This kind of data also opens the door for much more personalized client outreach, particularly when it comes to trading education. For instance, groups of traders that do not use available risk management tools can be sent tutorials on the value of stop-loss and take-profit settings, as well as information on how to apply them pre- and post-trade.    

Learn more about DXinsight

With DXinsight, we want to help brokers and funded trading firms to offer a level of platform personalization that’s often discussed but seldom implemented. We aim to move the personalization conversation from theory to practice by providing them with actionable client insights. 

The data offered by DXinsight can inspire marketing and retention teams to think outside of the box and craft novel communications that are truly of use to their clients. To find out more about DXinsight, please contact us.