Saxo Bank fires 266 people (20% of workforce), Oanda closes middle eastern office.

[CityBoy]

Over the last month we have seen a number of Forex Companies firing employees due to a slowdown in FX volume. It brings me to ask the question where will this industry be in 10 years time.
Today we have new brokerages being opened every single day mostly in countries such as cyprus and many more are closing, burning and slipping clients.
The flight has been particularly from large brokerages such as Saxo, FXCM and Oanda where you don't get a personal relationship therefore no loyalty to the company.

You're always going to be able to find a better spread somewhere else. Or more products or even a better platform (if not trading MT4) however what makes clients stay with a broker?

Whats important and what do you think will be the saving grace of this industry? If there will be one.....

 

[Adam FX]

Over the last month we have seen a number of Forex Companies firing employees due to a slowdown in FX volume. It brings me to ask the question where will this industry be in 10 years time.
Today we have new brokerages being opened every single day mostly in countries such as cyprus and many more are closing, burning and slipping clients.
The flight has been particularly from large brokerages such as Saxo, FXCM and Oanda where you don't get a personal relationship therefore no loyalty to the company.

You're always going to be able to find a better spread somewhere else. Or more products or even a better platform (if not trading MT4) however what makes clients stay with a broker?

Whats important and what do you think will be the saving grace of this industry? If there will be one.....

I think Forex industry is changing EUR/USD 2-3 pip spread is soon history. It`s hard for those large brokers to start offering 0.0 to 0.4 pip spread + tiny commission (means lower revenue). They have many workers and costs are high.

 

[capsmart]

If they finally decide to provide services they will survive. Instead of zeroing a customer's account they should think how to have profitable clients and make money out of it. If I open a 1000 dollar account and lose it in one month, fine, they made 1000 dollars, if I trade 0,1 lot every day they could make 500 dollars a year. It will take 2 years to make what they make in one month but with profit compounding I could be trading 10 lots every day and they could be making 1000 in profit in just 5 days as long as I remain profitable.

 

[Adam FX]

If they finally decide to provide services they will survive. Instead of zeroing a customer's account they should think how to have profitable clients and make money out of it. If I open a 1000 dollar account and lose it in one month, fine, they made 1000 dollars, if I trade 0,1 lot every day they could make 500 dollars a year. It will take 2 years to make what they make in one month but with profit compounding I could be trading 10 lots every day and they could be making 1000 in profit in just 5 days as long as I remain profitable.

I totally agree with you. Clients get smarter and soon brokers who offer large spreads ,requotes,huge slippage etc will be history