As new trading platforms continue to proliferate the retail FX sector, Ariel Communications launches a solution which allows funds to be held centrally and distributed to multiple platforms
Many FX firms have recently favored the use of shared wallet solutions which allow trading platforms which serve different purposes to access a common client base, a notable example being the provision of binary options platforms to FX companies in which existing MetaTrader 4 clients are automatically party to a seperate binary options platform via a centralized CRM.
This methodology is now being utilized within other areas of the business, as British electronic trading software firm Ariel Communications has today announced the launch of the Ariel Shared Wallet to provide end-users with a convenient, easy to use, central account to deposit funds to apportion to one or more trading platform as and when required. For brokers it provides seamless integration into payment providers allowing them to continue to utilise their existing relationships and systems.
The efficient means of conducting payment is critical in today’s retail FX industry, especially when bearing in mind the variety of platforms available and the continually decreasing margins which from which brokers can derive profit. Brokers therefore rely on ensuring that their operational costs in facilitating payment and withdrawal of client funds are minimal and that funds can be handled with low cost when clients select different trading environments. Ariel Communications made its intent clear to support innovative new platforms last year, the company having been an early entrant into the development of applications for tradable.
Simon Cox, CEO of Ariel Communications today explained to LeapRate that “This new product saves the costs and time associated with manual account handling, for example taking calls from customers wanting to deposit funds and/or moving monies between platforms. The shared wallet allows this to be done automatically. It also provides consolidated reporting of a customer’s funds, where they reside and activity. Currently brokers running multiple platforms have to do this back office reconciliation manually.”
Whilst this innovation most certainly addresses the need for brokerages to reduce costs, it is important to note that the regulatory dialog which took place last year in North America regarding omnibus accounts and the requirement for introducing brokers to produce detailed reports on their omnibus accounts and censuring brokers which do not maintain them according to regulatory rulings should be treated as a seperate matter, with Ariel Shared Wallet’s purpose being to ease the procedure of moving funds between platforms within one particular broker, rather than a holding account for multiple client monies are kept.
Mr. Cox continued to explain this to LeapRate, by detailing that ” As far as US regulatory considerations are concerned, Ariel Shared Wallet does not currently serve any US clients. However the thinking is that the Shared Wallet may not fit into the regulatory designation of an omnibus account as it is for one client with one or more accounts wishing to move funds from one platform to another with the same broker. Not a broker account where lots of client or customer accounts reside.”
The Ariel Shared Wallet is a standalone product with a single, web based, graphical user interface (GUI) to provide end-users with the ability to quickly view and manage all deposits, withdrawals and fund transfers across all accounts held with a broker. It is mobile compatible having been designed to work across the full range of GUIs including smartphones and tablets and could even be deployed as a separate app if appropriate.
Simon Cox, CEO of Ariel concluded in a corporate statement that, “This product aims to enhance the trading experience for end users allowing them to easily move funds between accounts and provide a simple visual status overview. It should also improve broker customer insight by allowing brokers to see when first funders actually put money into accounts and trading commences. Brokers can see when funds are added or withdrawn from any account and can use this knowledge to have a better dialogue with customers based on actual activity levels and usage patterns and therefore improve the relevance of their customer communication and in turn increase loyalty.
“The Ariel Shared Wallet makes it simple for a new customer to open an account and upload funds. For the broker this on-boarding should encourage new customers to fund rather than just open an account, thus avoiding the issue of new customers opening an account but never actually trading.”