OvertEd Markets

JOSHUA BENTLEY

Co-founder of OvertEd Markets

Q Client acquisition is a long-standing challenge in the retail CFD/FX industry, what are some of the complexities?

The problems around client acquisition are multifaceted with the average cost per first trade being incredibly high and average client longevity being relatively low. This means that brokers need to establish a consistent source of new business of sufficient quality to realise consistent and meaningful returns. The industry has certainly benefited from an influx of new business over the last few years, which has made these challenges less pronounced. However, as we return back to normality, the industry is likely to be more competitive than ever before – We are already noticing this in certain regional markets.

The high proportion of traders who use multiple platforms as well as high industry switching rates due to the magnitude of like-for-like offerings also means that brokers are constantly at risk of losing a significant proportion of clients to competitors. This is compounded by the inevitability of a significant proportion of current active traders exiting the market and becoming dormant at any given time. Ultimately, having knowledge of which brokers are dominant in a specific regional market, as well as which regions competitors are focussing on and which brokers are gaining/losing traction M/M can be of great benefit from a strategic and digital marketing perspective – the OvertEd Markets platform provides this degree of transparency and gives our clients a clear edge over their competitors.

Q Can you give us a recap on OvertEd Markets main product offering?

OvertEd Markets is a cloud-based platform that houses the most comprehensive database on the activities and offerings of retail CFD/FX brokers globally and uses algorithms to predict monthly share of funded accounts across more than 48 regions. An increasing number of leading brokers, including UK listed companies and social trading platforms, use our competitor intelligence and industry data to drive client acquisition and to optimise marketing costs. Our platform also provides a wealth of additional industry insight and is fast becoming an industry necessity.

Q What were you and your clients able to predict from your data during 2021?

The OvertEd Markets platform was the first platform to use algorithms to determine where the large MT4 brokers were generating record volumes and their relative penetration of other international markets. The OvertEd Markets platform also correctly identified the growth in active trader numbers in Singapore as well significant changes in share of funded accounts/account switching dynamics many months before market participants acknowledged the change. Our algorithms were even able to identify a decrease in funded accounts and change in geographic focus for a broker undergoing a change in key personnel (something we didn’t know at the time of identifying changes in geographic focus).

Q Are you working on any interesting projects at the minute?

Yes, we are constantly updating the breadth of data we cover and the functionality of the platform – adding new features and datasets on a regular basis. We are working on a number of new features that will help clients monitor M/M changes in market share and identify both winners and losers of client switching. In terms of consulting work, we have been doing an increasing amount of work in key regions in South East Asia and emerging Africa.

Q How can people contact you if they want to learn more?

You can take a look at our product offering at www.overtedmarkets.com and email us at info@overtedmarkets.com to arrange a demo of the platform.