A fact-based perspective on challenges and opportunities for brokers at the beginning of a new Trump era
2025 marks the debut of a new era for the financial markets. A new market dynamic has been set in motion with the return of President Donald Trump to the White House. Additionally, the Russia-Ukraine war and the Israel versus Hamas conflict have scarred geopolitics in an unprecedented way.
As the world is bracing for President Trump’s tariff onslaught, financial institutions are faced with both challenges and opportunities. In its recent ebook, ‘Navigating 2025: Smart Brokerage Strategies for a Volatile Market’, multi-asset liquidity provider X Open Hub reveals the key aspects that well-established brokers and startups must look out for as the financial landscape is shapeshifting.
With persistent volatility being the hallmark of this year as it progresses, X Open Hub points out multiple aspects that are instrumental to creating a successful brokerage strategy for 2025 and beyond.
Innovation at the crossroads
In light of the current market kinetics, brokers must find new solutions to old problems as traders continue to seek advanced platforms, sophisticated yet intuitive tools, and deep liquidity. To stand out in the heavily serviced FX and CFD industry, brokers will have to swiftly embrace change and mold their growth strategies to the current market trends.
The Forex market at odds as monetary policies mutate
Headline inflation has neared central banks’ targets in most developed and emerging economies. At the same time, inflation is expected to drop from 5.4% to 3.8% in 2025. Despite a strengthening economic activity, which is steadily reaching pre-pandemic levels, challenges remain.
Interest rate cuts and the US President’s tariffs will pressure domestic currencies, which could be the major drivers of volatility, in combination with AI innovation.
Commodity markets through the lens of US-imposed tariffs
Oil stockpiles will keep expanding as the US President seeks to fulfill his “Drill, baby, drill!” mandate. At the same time, OPEC’s decision to delay oil production hikes until April 2025 could provide some stability to oil pricing. Yet it is all a matter of supply and demand.
Directly linked to oil supply, global energy consumption is forecast to reach 1.6% this year, with emerging economies driving this growth. China, which was earlier expected to account for more than 50% of global consumption, will cover only 20%.
Precious metals in focus
As uncertainty will likely continue to be the highlight of 2025, gold is expected to reach $3,000 an ounce led by central bank purchases.
The yellow metal’s counterpart, silver also benefits from increased demand from the AI tech sector, EV adoption and solar panel production.
Cryptocurrencies
Bitcoin, Ethereum and other digital currencies are also among the big gainers of President Trump’s deregulation measures and the proposal to hold 1 million worth of BTC in the Federal reserves. Despite this positive context, Bitcoin is also exposed to a price correction in the first half of 2025, X Open Hub notes.
X Open Hub helps brokers create regulated liquidity buffers
This context opens several windows of opportunity for traders across markets. Consequently, brokers must create liquidity buffers and fast, if they wish to meet the increasingly sophisticated demands of their global clients.
Providing deep multi-asset liquidity across more than 5,000 instruments, including major, minor, and exotic Forex pairs, stocks, ETFs, indices, commodities, and cryptocurrencies. These deep OTC liquidity pools allow brokers the flexibility they need to create deep order books across a vast range of asset classes effortlessly.
Additionally, X Open Hub offers FIX API integrations that enable brokers to easily connect their environments to its liquidity pools and start offering best bid-ask pricing and institutional-grade execution straight away.
The liquidity provider’s FIX 3.4, FIX 4.4 and advanced GUI-based integrations allow seamless and stable connectivity to multi-asset bank and non-bank liquidity pools, real-time order execution, as well as position management with extensive reporting, in line with the ever-evolving regulatory framework across jurisdictions.
This not only assists brokers in creating a risk management cushion for high-volume order processing but also access regulated liquidity pools. X Open Hub is one of the few multi-regulated and licensed liquidity providers.
With licenses from the FCA, KNF, CySEC, DFSA, FSCA, FSC, FSA, SCA, and Bappebti X Open Hub empowers CFD brokers to expand their offerings and scale effectively. On the B2C side, this equals fair pricing, better trading experience, more loyal and satisfied traders.
These attributes combined with trader-centric risk management features such as negative balance protection, deep order book execution, and enhanced broker security are pivotal to navigating the current period of heightened market volatility.
Thanks to its advanced customisation capabilities, the X Open Hub liquidity and trading infrastructure further empowers brokers to generate personalised reporting and tailor their environments to meet the requirements of Tier-1 regulatory frameworks with ease.
Well-known for its award-winning licensed liquidity and trading solution, X Open Hub stands out not only as a leading multi-asset liquidity provider but also as a reliable and resourceful partner for brokers of all sizes. Its recent eBook is proof of its commitment to providing institutional FX players with the resources they need to succeed in today’s challenging business environment.
To understand how you can better navigate this period, download the eBook now.