Forex Magnates - Home of the Forex Elite http://www.forexmagnates.com
A few days ago Atlanta-based FX Bridge Technologies Corp. announced that it has raised $500,000 from investment bank Croft & Bender LLC. So far the company has raised about $4.5 million since launching in 2007. FX Bridge’s software allows brokerage clients to electronically buy and sell forex, CFDs and options. The company makes money through software licensing and transaction fees.
Does this mean the Forex software market is open for competition? I hardly think so.
Generally speaking, Forex brokers can offer trading using either their own self developed software or commercial software developed by independent Forex software companies.
The independent Forex software market is almost completely dominated by Metaquotes and ACT Forex’s trading platforms. I’d say these two companies combined own 95-99% of the market share – clients and volume. Out of the whole retail Forex market commercial software (Metaquotes and ACT Forex) is about 60-70% with self developed platforms by brokers such as FXCM, GFT and MB Trading accounting for the remaining 30-40%, volume speaking.
The only innovation we lately see in the Forex software market is upgrading and improving of existing platforms – FXCM with CFDs, FXOpen with MT4 ECN, Metaquotes with its new MT5 or Currensee with its social Forex platform.
So it comes as a surprise to me that a skilled institutional investor picked a Forex software company for an investment. Perhaps I’m completely mistaken and FX Bridge despite what it says on its website focuses on Forex options only and not on spot trading – but then there is an arguments against that as well: Forex options market will never be as big as the spot market (which is a niche by itself) simply because it’s a much more complex instrument and it’ll take at least a few decades for the large institutional traders to turn their focus on that segment.
If after 9 years of operation in a relatively growing market a Forex software company still requires external funding – this is the biggest warning sign of them all.
http://forexmagnates.com/fx-bridge-raises-funds-competition-in-fx-software-market/
- Related Videos
- Related Articles
- Ask / Related Q&A
- Forex Moments and Forex Magnates announce the Ultimate FX School for New Traders
- Forex Magnate of the Month™ for May 2009: FXCM
- Forex Magnates: 2009-06-10: Forex Magnates Daily Updates
- Forex Magnates - Craziest promotion yet - trade without depositing
- IG Group reports a strong fiscal year, Forex growth in UK slows down, Japan is becoming competitive
- Forex Magnates: And yet another Forex Ponzi scheme! This time targeting Korean-Americans
- Forex Magnates - Saxo Bank makes another blunder, this time makes a move into Japan
- Forex Magnates - FXCM explains its execution model, Dealing Desk gone
Forex Trading System For Currency Trading
By: Mike Honiya | 05/12/2009For those traders who do not use a Forex currency trading system, they will have to face the possibility of losing money at some stage in their career. This is because they do not carry out their trading in a disciplined way. By using a forex currency trading system they are assured that they will be able to keep their losses to a minimum and continue to trade.
FOREX Trading Systems Know What Curve Fitting Is or Lose
By: Mike Honiya | 05/12/2009In Forex day trading you see many systems that have fantastic track records in back testing, yet they can never match this performance in real time and the trader wipes out his equity.
Simply A Great Forex Trading System For Those
By: Mike Honiya | 05/12/2009Forex trading has been getting much of its popularity from the great advantages it offers to the aspiring forex traders around the world. The forex market is a huge market with an equally huge liquidity and with millions of transactions a day.
Learn Forex Trading
By: Mike Honiya | 05/12/2009If you have not heard of the turtles then you will find their story inspiring. They had no experience of trading yet in just 14 days they were taught to trade and went onto become trading legends and make millions.
Online Forex Trading
By: Mike Honiya | 05/12/2009A lot of people are surprised to find out just how easy it is to learn even the basics in relation to Forex online currency trading. You will be surprised just how quickly you can actually start to make a profit through this type of trading, but at the end of the day this will depend a lot on which type of trader are you. Through this article I will be explaining just how easy it is to learn about the basics of forex online currency trading and how easy it is to make a profit.
Price Driven Forex Trading Review
By: Mike Honiya | 05/12/2009If you want to work at home with a great earning potential you should be thinking about learning forex trading, one of the most profitable activities anyone can enter into due to its generous characteristics that set it apart from other capital markets.
Benefits of Forex Trading Software
By: Mike Honiya | 05/12/2009As the Internet grows in popularity, more and more individuals are learning about the benefits of trading currencies on the Forex market. In recent years, Forex trading has become known as a great way of investing money. But if you do decide that you want part of the action, you should do some quick research on the Forex software packages on the market. They can help you trade easily and from the comfort of your home and office.
Forex Trading Online
By: Mike Honiya | 05/12/2009When it comes to selecting a system out of the many Forex online trading systems that are now available there are a few things that a person should be aware of. As with anything that you do in life you should first carry out some research into the various systems available before you make your final decision on which system it is you are going to be using.
A recent survey shows online advertising is ineffective – nonsense
By: forexmagnates | 23/11/2009 | Currency TradingPhoenix Marketing International, announced today findings from its quarterly study among online investors age 21+ reporting investable assets of at least $50k and who typically place 4 to 9 trades each month (active investors) or 10+ monthly trades (active traders). Phoenix reports that 48% of investors ignore online advertising, as many expect these ads to show more than just the company name, and 41% want to be told something about the company
A recent survey shows online advertising is ineffective – nonsense
By: forexmagnates | 23/11/2009 | Currency TradingPhoenix Marketing International, announced today findings from its quarterly study among online investors age 21+ reporting investable assets of at least $50k and who typically place 4 to 9 trades each month (active investors) or 10+ monthly trades (active traders). Phoenix reports that 48% of investors ignore online advertising, as many expect these ads to show more than just the company name, and 41% want to be told something about the company
A recent survey shows online advertising is ineffective – nonsense
By: forexmagnates | 23/11/2009 | Currency TradingPhoenix Marketing International, announced today findings from its quarterly study among online investors age 21+ reporting investable assets of at least $50k and who typically place 4 to 9 trades each month (active investors) or 10+ monthly trades (active traders).
Interbank FX launches a Facebook app
By: forexmagnates | 19/11/2009 | Currency TradingInterbank FX has recently launched a very interesting application – a Micro Mini Challenge on Facebook. This is a very interesting development in the Forex marketing arena and I expect many more firms to follow soon.
babypips.com grows, goes social
By: forexmagnates | 17/11/2009 | Currency Tradingbabypips.com the known Forex educational forum has recently made a significant number of steps signalling its understanding that the Forex market is going social. Let me coin that as Forex 2.0.
FX Bridge raises funds, competition in fx software market?
By: forexmagnates | 10/11/2009 | Currency TradingA few days ago Atlanta-based FX Bridge Technologies Corp. announced that it has raised $500,000 from investment bank Croft & Bender LLC. So far the company has raised about $4.5 million since launching in 2007. FX Bridge’s software allows brokerage clients to electronically buy and sell forex, CFDs and options. The company makes money through software licensing and transaction fees. Does this mean the Forex software market is open for competition? I hardly think so.
FXOpen introduces incremental ECN lot trading
By: forexmagnates | 28/10/2009 | Currency TradingToday FXOpen announced (http://forum.fxopen.com/showthread.php?t=62155) that it completed the development and testing of another very important feature – incremental lot trading. With the exception of MB Trading small time traders could not have traded ECN style due to the very large minimal order requirements.