WHY WESTERN FIRMS ARE FLIRTING WITH ASIA

The love affair between the West and Asia continues to strengthen. While the

rest of the world is dealing with a global economic crisis, the Asian markets are

growing at a breathless pace, and this is even more noticeable in the financial

sector.

Western firms have noticed this niche and eagerly want to gather clients from

all over Asia, namely China, Vietnam and Indonesia, by signing strategic

partnerships with local IBs and the set-up of offices in Hong Kong, Singapore

and even Australia.

The attractive characteristics of the Asian markets are the fact that its financial

markets are very developed, the traders are savvy and the region is free from

financial and economic crisis which has infected parts of Europe. The number

of people inhabiting these areas results in high volumes which is highly

appealing to brokers. Technology is also very advanced in this region and this

also contributes to the rise of these markets.

The key to a full penetration of the Asian markets is understanding the culture

and the language. English is not widely spoken and the Asian people feel more

comfortable dealing with someone in their own language, they also use certain

means of communication which differs from the rest of the world; in China

Facebook and YouTube are banned and they prefer to chat via QQ, and use

YOUKU and TOUDU.

Another success story with Asians is the use of bonus credits as promotional

campaigns; they love this. The ideal scenario for them is that they get either a

no-deposit bonus when opening a real account ($50, $100 or $200) or that on

depositing funds, they get a bonus credit of 50% or sometimes even 100% of

the amount deposited. These bonuses are generally not withdrawable and

serve as a cushion for trades.

GROWTH OF THE IB IN ASIA

Western firms have discovered that a safe way to enter the FX Far Eastern

markets is via a local IB, or local representatives; or even with a White Label

solution with Revenue Share. This way they have a local representation,

promoting their products in their language and with their local know-how,

guaranteeing more of a response.