If you have been following along, remember that we're trying to illustrate that asking the question "Who is the best broker?" should be revised to "Who is the best broker for me?" Read my previous post, DataInsight Broker Evaluation.
Within the DataInsight Market Profile, Niche Players are companies which rank lower on both the Level of Maturity and Range of Services scale. Typically, these companies are relatively new in the market serve a smaller customer base.
Niche Players = Lower Range of Services + Lower Level of Maturity
Instead of the next big company, there are a myriad of small companies with simple ideas that fill the Forex landscape. They don't try to be all things to all people but rather, they strive to do one thing extremely well. Niche players aren't bad choices because they are young or small. Sometimes these companies make a strategic decision to be a niche player to serve a different type of client - fill a different need. Niche players may just be the right fit for you.
Think about this. Do you really need a company that provides trading, training, market and technical analysis, trading systems, trading signals, and managed accounts?It doesn't make a lot of sense to declare that Company A is a better broker than Company B simply because it is bigger, older, or more popular. Yet, there are dozens of Top Ten broker rankings that only consider the size of a company or the number of website visits they receive daily.
Let's say, for example, that Broker A is a niche player serving 1,000 clients with an average account size of $100,000. Broker B, on the other hand, is a full service company with 20,000 customers with an average account size of $5,000. You can see how these companies fill a different need and might appeal to a different type of trader.
Again, what we illustrate with our Market Profile Sectors is that Forex companies fit an identifiable profile and, once you determine which type of broker profile suits your needs, then you are more likely to find a broker that meets your personal requirements. Bigger is not necessarily better.
Tomorrow, Early Risers.