A couple of weeks ago we looked at PrimeXBT and no doubt the company’s owners were thrilled about that.
But I thought it would be worth revisiting some of the points made there. As noted, PrimeXBT has a good app, a cool website, and a variety of products. In other words, it is basically on par with a lot of the biggest brokers in the industry, even if it is not operationally the same as them.
Towards the end of our article we looked at some of the people the broker has brought in over the last 12 months or so. That includes the former CMO at XM, as well as product, affiliate, and tech people from brokers like Exness, FxPro and the Exinity group of brands.
Along with a rebrand, upgraded app, and new social accounts, you get the sense that PrimeXBT is ramping up to expand. Looking at their marketing activity and hires, this is likely to be in the EM regions – so LATAM, Africa, and ASEAN.
There are a few reasons to think they could actually do extremely well in the near term. Here’s why.
- Product – app
Offering a standard MTQ set up in Europe today means you are unlikely to be competitive. Every major, successful brand now has their own app, typically with multiple investment options.
The trend is basically towards people trading on simple apps and there is demand from clients for multiple products. Adding multiple products is also a useful way of lowering your marketing costs.
However, outside of Europe, this hasn’t really happened yet. You still have a lot of big players that are just doing the same MTQ offering and then using local IBs to bring in clients. This model may work but it is hard to create a competitive product when you are using someone else’s off the shelf technology.
PrimeXBT can hit hard in markets where this is the case. In fact, this seems like their entire game plan. And given no one else is building a similar product to them – as far as I can tell – it stands to reason that they will stand out as a result.
- Product – assets
Another factor to consider here is PrimeXBT’s crypto offering. Again, almost no players that I’m aware of from the CFD world offer crypto futures and physical crypto, but also target the EMs that PrimeXBT appears to be going after.
This is beneficial for a couple of reasons.
Firstly, as the example of XTB and Trading 212 in Europe shows, offering alternative products can lower CAC.
Secondly, in the EMs that PrimeXBT wants to target, crypto is popular. As we’ve looked at before on a few occasions, most big crypto exchanges get their traffic from places in LATAM, Nigeria, and then the big ASEAN countries, like Vietnam and Indonesia.
The result is that PrimeXBT has a product to offer that other CFD providers don’t have and can sell that product in regions where it is popular.
- People
We have joked before about the volume of people who went from IG Group to Capital.com. Part of that trend was probably due to a mix of two factors – people looking for something new after a while and/or feeling like they had reached a point where they had no more room to progress.
Arguably if you look at many of the people who have moved over to PrimeXBT, they are in a similar position. For instance, if you were CMO at XM, there aren’t really that many places you can go. Moving to more of a start up place is good for you because maybe you get options and/or you get a new challenge. It’s also good for the company because they get someone with loads of experience.
If you look at a lot of other people that have moved over, for example the company’s CCO, you get the impression they may have been in a similar position.
Ultimately human capital is what makes a company work. PrimeXBT has hired a lot of people with a lot of experience. If they can replicate what they’ve done elsewhere then the company will end up doing well.