Our CEO Juan Colón and CDS Ali Saif (himself also a retail trader) have started a #darwinex-uncut mini-series about “Brokernomics”. Inspired by the popular economics book Freakonomics, our goal is to emphasize the need for all retail market participants to understand how their brokers really work, inside out.
Brokernomics (1/5) - Introduction
A broker is a complex machine, its inner workings not having much in the way of publicly available information.
With this series of conversations, Juan attempts to describe the inner workings of this complex machinery. The better you understand how we work, the better we are able to serve you at the end of the day.
Brokernomics (2/5) - Direct Acquisition
In the 2nd part of the series Juan talks about Direct Acquisition of clients by brokers.
He sheds light on how much it costs for example, to a highly reputable, major, well-established brand and broker like IG, to onboard a new customer, when on average the company breaks even after spending the money to onboard the customer, and what the cumulative lifetime value of that customer is to the company.
Juan also explains why Darwinex does not and will not spend large sums in upfront advertising costs to attract clientele, relying exclusively on existing clients’ recommendation and word of mouth.
The IG Group example in this conversation serves to both appreciate and demonstrate the scale at which large, successful brands like IG operate. Darwinex respects IG and congratulates them for their success, and does not consider IG as its competitor - different target client niches altogether.
Enjoy… and stay tuned as more is to come soon! We’d like to encourage you to let us know if you’d like us to cover anything specific in this series. Just reply here or easily send us a voice message.