Lifetime value of retail FX clients is of increasing importance to brokers, especially with retention costs at an all time high. Could FxPro’s Infinite Card keep clients engaged and minimize withdrawals?
FxPro has today announced the launch of its own branded prepaid card under the designation of FxPro Infinite Card.
As the card is issued by MasterCard, its holders will be able to link it to their FxPro trading account, as well as use it to make transactions across retail stores in a similar way to that afforded by standard debit and credit cards.
FxPro states that its clients are able to move funds between their FxPro Vault and the pre-paid MasterCard as required, to be utilized as necessary.
Retail FX brokers have become increasingly concerned about giving clients direct access to funds as the direct market access model has prevailed during recent years.
AvaTrade spearheaded the notion of providing account holders with a card which encourages them to spend rather than withdraw by launching its own Ava Debit Card, whereas external providers such as Payoneer had carved out a substantial business in providing pre-paid cards to introducing brokers and partners of retail FX firms as a means of receiving their commissions in a format that can be used in retail outlets rather than withdrawn, thus creating the need to generate more business for the broker.
In today’s retail FX industry, where spreads are low and clients are knowledgable, margins are lower than they were just a few years ago. Coupled to this, competition is high, therefore engaging clients long-term is a paramount consideration for most brokers. By providing a pre-paid card, time will tell whether this keeps traders spending and trading rather than withdrawing their profits and seeking pastures new.