Pepperstone Razor Forex Trading Account (SMART 100)
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The following SMART 100 profile and the information it contains is a duplication of content submitted by the applicant during the entry process. As a function of entry, applicants were required to declare that all details are factually correct, do not infringe on another’s intellectual property and are not unlawful, threatening, defamatory, invasive of privacy, obscene, or otherwise objectionable. Some profiles have been edited for reasons of space and clarity. More about the SMART 100.
Pepperstone Razor Forex Trading Account (VIC)
This innovation initially came to life when…
Pepperstone created an electronic network linking the trading floors of 22 banking institutions together.
Previously linked by primitive systems or phone networks, we noticed a gap in the marketplace for fast and affordable electronic foreign exchange trading. Taking pride in passing all cost savings through to our clients we broke the industry mold and offered some of the lowest commission charges in the industry.
Pooling liquidity from over 22 banks worldwide we are able to offer our clients “razor” sharp pricing which delivers significant cost savings on each and every currency trade.
WHAT & HOW
The purpose of this innovation is to…
Provide Currency Traders access to the interbank market for buying and selling currency (Foreign Exchange). Previously traders had to accept a price from a single bank.
It does this by…
Using an optical fibre network that Pepperstone has created based in a New York datacentre.
Only 14 miles from Wall Street, this network links Pepperstone with the trading floors of 22 the world’s biggest banks.
This interbank network aggregates prices at which these banks are buying and selling currency and then offers the best price to Pepperstone Razor Account clients.
PURPOSE & BENEFITS
This innovation improves on what came before because…
Traditionally, forex brokers operated using a dealing desk — passing trades via the phone to just one bank or counterparty.
Pepperstone has created an electronic interbank network that aggregates the best prices from over 22 banks worldwide. This streams the best buy/sell quote online meaning the client gets the best price in available in the fx market.
Its various benefits to the customer/end-user include…
Cost savings on every trade: by getting a better price for every transaction, traders can reduce commissions and trading costs, leaving more room for profit.
The enhanced pool of liquidity also enables larger trade sizes to be executed faster.
COMPETITIVE LANDSCAPE
In the past, this problem was solved by…
Forex trading was once dominated by large institutions with high fees, large account size minimums and complicated platforms.
Pepperstone democratised the marketplace by offering small traders the chance to compete on a level playing field. Our technology and price aggregation now means that an individual with as little as $200 can begin speculating in the currency markets.
Its predecessors/competitors include…
Passing trades via the phone, the Old World broking desks that dominated the fx market were slow and inefficient, resulting in missed profit opportunities.
Pepperstone competes with much larger NYSE-listed e-brokerage firms like Gain Capital (Forex.com) and FXCM (fxcm.com).
TARGET MARKET
It is made for…
Investors and speculators looking to trade the rapidly growing USD$4 trillion-a-day global currency market. Traders have been battered by stock market falls in recent years and are looking for alternative products — and foreign exchange has proven to be the fastest growing retail asset class in the world.
The rising Aussie dollar has also prompted huge interest in currency trading which enables investors to take advantage of swings both up and down.
The 24-hour nature of the market, efficient nature and large liquidity — FX is often considered to be the “perfect” market to trade.
DISTRIBUTION STRATEGY
It is available for sale through…
Online. Customers can create an account online and deposit funds instantly. Pepperstone also has a 24-hour phone trading desk open six days a week for trade execution and 24-hour live-chat customer support on our website.
Our marketing strategy is to…
Primarily promote the product online; given the product’s ability to save forex traders money the online trading community has embraced the product and promoted it virally.
Pepperstone also has a network of 450 commission-based agents in 40 countries worldwide that are promoting the Razor account in 12 languages.
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