FX Social Networks: Reshaping the Investor Landscape
Report Summary
FX Social Networks: Reshaping the Investor Landscape
FX social-investing networks could delegate brokerage services to a secondary status if traditional FX brokers do not climb on the bandwagon.
Boston, July 26, 2011 – A new report from Aite Group provides an in-depth examination of the growth drivers, main players, and the significance of social investing in the retail foreign exchange currency (FX or Forex) markets worldwide. It profiles six firms that have developed a successful, cutting-edge model for social investing that is attractive to traditional investors and is already luring first-time investors by the millions. The report also identifies best practices for the space and the best companies for brokers, banks, and securities firms to partner with or emulate.
Though relatively new to the scene, the social-investing initiatives of a few ventures are firmly planted as an increasingly popular choice for participation in the retail FX currency market. Using trade replication technology, social network concepts, and the ability of FX to navigate choppy markets, these companies have packaged the trading expertise of a few gurus to the benefit and convenience of the many who need above-average returns and wish to retain control of their investments. With more than 4 million visitors flocking monthly to the largest portal of these social-investing firms, this market is in a furious race for scale.
“Demand for leading social-investing companies is a response to the increasingly unpredictable climate for traditional investments and to various constraints faced by self-directed FX traders,” says Javier Paz, senior analyst with Aite Group and author of this report. “There is evidence to suggest that FX social-investing firms are producing a level of investor profitability of at least 50%, compared to 30% among U.S. self-directed traders.”
The report profiles Collective2, Currensee, eToro, myFXbook, Tradency, and ZuluTrade.
This 39-page Impact Report contains 19 figures and one table. Clients of Aite Group's Wealth Management service can download the report.