Invast Global, Zenfinex, Admiral Markets and VantageFX are just a few of the Forex and Contracts for Difference (CFDs) brokers currently operating under new names.。Some brokers have adopted brand new names such as 26 Degrees and Taurex, while others have followed traditional names such as Admirals and Vantage。On the eve of the new year, we conducted an in-depth survey of these transformed businesses。

The decision to rebrand is tough, and it can ruin the brand value the company has built over the years, especially for customer-centric retail companies like brokerage firms.。As a result, companies are thoughtful and plan for months or even years before they rebrand.。

Marketing can quickly convey a lot of information to the audience, and first impressions are important。Therefore, branding is an important part of marketing, so start with the basics。

Long-term strategy

The purpose of the broker to rebrand is very important。Companies that decide to rebrand often spend a considerable amount of time understanding the purpose of rebranding before they are finalized。In the case of 26 Degrees, which only offers prime brokerage services, it took two and a half years to determine "the direction of the industry, especially the contraction of the prime brokerage market."。

Taurex (formerly Zenfinex), a relatively young retail broker, spent nine months thinking about a rebranding strategy.。According to Taurex CEO Nick Cooke, the company's goal is to "deliver a brand image that is fresh, stylish and disruptive."。However, the company retained the Zenfinex brand to provide B2B services.。

Cook added: "Our goal is to strike a delicate balance between maintaining Zenfinex's strong position in the B2B space and introducing Taurex, a dynamic new entity, to retail customers.。"

Meanwhile, two established retail forex / CFD broker brands, Vantage and Admirals, have been renamed but remain under their original names.。

"As a licensed CFD broker, we operate in a highly saturated but fragmented industry.。We recognize that it is critical for our brands to stand out in this crowded market and find their own unique positioning, "said Geraldine Goh, Chief Marketing Officer, Vantage Markets.。

"Combined with our comprehensive review of our competitors and extensive customer research, we are committed to building a new brand, Vantage, that is consistent across our brand structure."。

Speaking about the new brand, Daniel Skowronski, chief revenue officer at Admirals, said: "The challenge of rebranding is how to balance it out.。Replace Admiral Markets with Admirals and we won't lose everything。Our biggest challenge is how to sustain and maintain all the organic traffic that we have spent 20 years building up。

Last year, Admirals underwent a rebranding as the broker looked to position its brand beyond the traditional offerings of forex and CFD trading.。By removing "Markets," the broker is ready to offer any financial services under the existing brand。

Another relatively new CFD platform is BUX X X, which was rebranded last year and is now called Stryk.。However, BUX's goal is to distinguish the CFD business from other zero-fee trading applications.。

Brands need customer trust

Top retail brokers have hundreds of thousands or even millions of clients。The company can't suddenly change the brand, and communication with existing customers becomes the key to rebranding.。

Cook said: "Effective communication is essential to our approach.。"From a month before the transition, we launched an extensive email campaign to keep customers fully informed.。These comprehensive emails explain in detail the upcoming changes and set clear expectations。

"We make sure to guide customers through the expected changes in their trading experience, ensuring that they not only understand rebranding, but are prepared for specific improvements that will improve their trading journey."。

But as Goh stresses, most companies want to "make the biggest impact" when they publicly launch a new brand.。She further said the broker had received "different opinions and reactions" from clients about the rebranding.。

Rebranding is costly

Companies typically spend a significant portion of their marketing budgets on advertising。Decisions like rebranding can significantly increase marketing budgets because companies need to conduct brand development and marketing activities。

While Vantage and Taurex both point to a "significant capital investment" in rebranding, for 26 Degrees, "time investment" is the key cost element.。

"Some of the key costs include outside agencies working with us, outsourcing website development, new merchandise, public relations and, of course, our launch party," Downs said, adding that "some activities have been put on hold due to resource constraints."。

"My budget remains the same。I was very focused on ensuring a good return on investment for our marketing spend, so while we set aside a budget for rebranding, I only used half of my original budget, so my budget didn't actually increase。

Goh added: "In every rebranding campaign we actively seek to maximise the effect of communication, letting people know who we are and how we do things differently.。Of course, cost-effectiveness is also key.。While the cost of our rebranding is significant, the rewards we get from it, including brand goodwill, have far outweighed the cost。

Huge opportunity cost

While "opportunity cost" is not recorded on a company's books, it is another important factor that companies consider when rebranding。Opportunity costs come in many forms. For Taurex, it is "the opportunity cost of 9 months without investing in the Zenfinex brand while preparing for the launch of the Taurex brand." For Admirals, it is pointing to the loss of organic traffic of old brands.。

Cook noted that his company "budgeted accurate numbers and costs in its internal financial strategy" and that "the biggest costs are" opportunity costs. "。