Cost of trading the biggest factor for buy-side when selecting an FX broker

Over 50% of US and a third of EU respondents identified the cost of trading as the most important factor.

The cost of trading topped the list of priorities for the buy-side when selecting a currency broker. In a poll of over 100 buy-side FX market participants, over 50% of the US and a third of EU respondents identified the cost of trading as the critical factor when selecting a broker.

However, there were differing views on the importance of research from brokers; a quarter of European market participants identified quality of research as the second most important factor. In contrast, only 2% of the US respondents agreed, rendering quality of research the least popular choice amongst US traders.

Looking forward, both EU and US traders stressed the implementation of new regulatory guidelines as their greatest priority for the next 12 months. 60% of market participants in Europe highlighted this as their biggest concern, with implementation of guidelines relating to conduct, behaviour and research for new market opportunities considered crucial.

For US buy-side participants, reporting and transparency, closely followed by regulation and risk analysis, were the primary challenges.

The full results of the TradeTech survey can be accessed here.

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