an opportunity to open a brokerage in Asia?
The conflict between Russia and Ukraine has revealed a global crisis of confidence and strained relations between the countries. The United States speaks to any opposition only to imply sanctions: “If you don’t do what we say, we will impose sanctions on you, if you do what we say, we will lift the sanctions imposed on you more early”.
This rhetoric can only anger world powers like China or Turkey, which see themselves as allowed to pursue their own policies. Markets react sensitively to every statement; country and sector indices, stocks and currencies are turbulent. While some go up, others go down. How does this affect the brokerage business?
Market turbulence and crises always attract investors. Some venture there to preserve their capital, others want to earn more money. Over the past month, UpTrader has seen an increase in inquiries from Asian companies that focus on trading gold and currency pairs. Gold becomes a safe haven for investors during the storm. Others are looking to the energy sector, with Brent rising to $129.47 a barrel in response to sanctions on Russia. Stock markets fall. The foreign exchange market is far from calm.
Additionally, cryptocurrency and digital currencies are on the rise. Russia moved to legalize cryptocurrency in January 2022. Taiwan, on the other hand, introduced a ban on cryptocurrency payments, like China did a year earlier. But the Chinese digital yuan is successfully tested. Experts believe that it can successfully compete with the dollar in international payments in trade. After all, the dollar is losing the vote of confidence of many countries due to excessive use of sanctions.
All these developments encourage investors to open accounts with brokerage firms. A significant trend we’ve noticed over the past two years is that small local businesses are gaining more trust and interest from customers while the giants are losing ground. As we can see, this is because local businesses are much more customer-oriented and aim to meet the needs of their small target audience. They are also very flexible and quick to adapt to changing trends, which big brokers do with a lot of delay.
It is common in Asia for former big IB Forex brokers to set up their own brokerage firms. They have a reputation and loyal customers. To open a business, all they need is a MetaTrader server (recently, it seems, everyone is buying only MT5) and Forex CRM. Separating from their former bosses allows them much more flexibility to serve customers and not be dependent on another company’s policies. All Asian clients who have come to UpTrader in the past few weeks are asking for MT5 and Forex CRM.
Finally, working with Asian clients has always been simple and straightforward for us. This is another feature that makes working with Asia quite promising. And the timing to enter the market is perfect, as it feels like the start of a new era.