Outlook di un Broker
15 апреля, 2020

Pure Market Broker and future prospects.

The CEO Daniele Casamassima talks about the business model and the future of Pure Market Broker , a broker with an innovative and different business model from the usual ones, with excellent prospects in Italy.

Interview with Daniele Casamassima, CEO of Pure Market, broker regulated by FCA, for his vision of the business model and the prospects of the online trading sector. A 100% STP Forex broker that operates without conflict of interest. The predictions and future prospects of Pure Market Broker .

Is Pure Market different from other brokers in the sector?

When I created Pure Market Broker in 2016, my idea was to satisfy all those customers and partners who could not find a solution in the “ordinary brokers”.

The Forex market is full of brokers, so it is not easy to cut your share when you have to compete with larger brokers and with a major marketing budget.

Like Pure Market, therefore, we have decided not to compete. We are not an “ordinary broker”, we have partners who come to us and we design the product they desire. We have a clear and transparent way of working.

We mainly work with Introducing Brokers who come to us with special needs and try to satisfy. As a pure broker, Pure Market is the perfect place for profitable clients and money managers who want to find a transparent broker to trade with.

STP broker

All trading operations are transparent and controllable by the client; we are 100% STP, on trading on request we can provide all the details of the execution (venue, price, slippage etc.).

Furthermore, we have no conflict of interest with customers; indeed we test and try everything possible with them to improve their trading experience. For this reason, for professional clients we customize feeds, liquidity and spreads.

In this way we are different, most of our professional clients come to us and ask us what they want, we don’t say what we have. We create the right product for their needs.

Partner and Introducing brokers

Pure Market is also a different broker for the corporate structure. We have no sales and by extension, we have no hold back. We work with partners and IBs who are paid only on discounts (working in STP is the only way to pay a partner otherwise you may be negative in some cases).

The duration of our clients is over one year, while the average clients in other brokers are around 3-4 months, so we don’t need a quick recycling and a quick renewal of the clients. We do not call a customer in case they intend to withdraw the money, we simply send the money quickly.

What is the STP advantage and why do other brokers operate differently?

The advantage of Pure Market is to run a real STP model, so that we don’t need a risk team to control every customer.

Instead, we just have to check the general exposure of the brokers among our LPs. We have a lighter business model than a normal B-Book brokerage, i.e. with internal order management as a market maker does ). We don’t have sales and loyalty, we don’t spend millions on advertising and our fixed costs are really low.

For this reason we are able to better achieve profits easily and consistently every month. We cannot end a month in negative (as in the case of market maker brokers if customers are profitable) and instead we can have a month with more profits or a month with less profits.

Obviously, profitability per customer is much lower in this context, but we also try to target customers who are more profitable so that they can trade with us for a long time. In this way, we increase our profit over the months, as old customers are still with us and new customers arrive.

Therefore we have no leads to buy, calls and conversions.

We believe this model is more automatic, leaner and cheaper. Of course, we also recognize that the market can be really profitable, considering that the percentage of retail customers who lose money is really high.

However, in the business market you have a lot of fixed costs with staff and marketing and in 2019 with ESMA, most market brokers have had strong success in earnings.

Pure Market offers products tailored to customers and how do you modulate the personalization of liquidity?

We offer customized products and this is our core business. For example, a partner or professional client comes to us and we ask: tell me what you need? And let’s try to design the product for them. We select the liquidity venue based on the negotiation style, the size of the negotiation and the necessary tools.

We select the desired final spread and markup, we can create PAMM, structure the presentation profile of the broker with a different level so that the partner can develop his own network.

Pure Market has a white label product and do you expect interest in this type of growing offers?

Yes, actually we do. We have just launched our pure-partner.com site where we provide more information about our white label products, with different packages. In 2019, I saw the offer really grow as it is now becoming more complicated for new brokers to obtain a license (even offshore) and set up an adequate payment system in a situation that is becoming increasingly complicated, especially with the banking system.

Pure Market can set up a new business in a week. For a gray label set up to which we provide trade name under our license, payment system, back office, MT4, liquidity, support, AML and KYC, we can be ready in a week.

Looking ahead to 2020, are there any industry hurdles that Pure Market is preparing for?

In 2019 we started with Pure Market Broker UK, then with the FCA license which offers us greater visibility in Europe. Now our next steps are to define our market share even more.

We want to give more transparency to our customers and in the first quarter we plan to publish the execution side of the liquidity provider on our website for every single transaction we receive every day.

We will integrate a page where every customer who trades with us can clearly see that if he is sending an exchange to our MT4, it is reflected at the same time on the liquidity provider. This will guarantee our customers that 100% of our operations are STP and we are working on their side and not against them.

Another concern that is now relevant to customers is the security of my funds. As we have seen in past years, being regulated is not really a guarantee that the funds are actually safe.

Like most of the time, regulators only act when the problem is too big to solve. Another point on which we are working is to publish: bank statements and real dedicated area on the site where a client can see how much money we receive and send, if we send the client’s funds (therefore we actually send to the liquidity providers.

Pure Market will also endeavor to send key information to customers. This includes coverage of a customer’s name on deposit and withdrawal, but we will maintain full transparency on all other account movements to be shown.

We will try to do what others don’t. We have nothing to hide and we want to reach a point of full transparency where a customer will keep his funds with us.