Kent Riboe, Managing Partner at MT Proxy, recently spoke with Paul Orford in an interview for the latest edition of Game Changers Magazine. We’re pleased to share the interview with you here.
Tell us about MT Proxy. What is your vision for the company?
We create custom-built proxy server networks. Our networks are designed to help forex brokers reduce client-side latency and boost client connectivity worldwide. Our goal is to become the go-to industry provider for all forex brokers, big and small. Through our technology, we want to help forex brokers improve their service and deliver a better, faster online trading experience to traders worldwide.
What are the challenges brokers face when trying to reduce latency?
Many brokers believe that by having their main server in a major trading hub like New York, Tokyo, or London, they can reduce latency for all of their clients worldwide. But this isn’t the case. Having their main servers in these locations is great for market-side latency, but it won’t do anything to improve their client-side latency. And in order to truly reduce latency for clients, brokers need to reduce latency at all stages of the trade execution.
The best way for forex brokers to do this is by choosing the right service providers. Firstly, they need to partner with great bridge and liquidity providers. This is the most efficient way of reducing market-side latency. Secondly, they need to find a proxy server provider that can help them get closer to clients. By having proxy servers in strategic locations worldwide, brokers can benefit from faster data transfers and therefore faster trading. This is the most effective way of reducing client-side latency.
Are there any countries where reducing latency can be more challenging for brokers?
Any country south of the Equator is going to be more challenging. This is because those countries are quite far from most of the major trading hubs, and from most of the major liquidity pools. To reduce latency in these countries, brokers need to work on boosting their connectivity in those regions. But this is easier said than done, as even large, global internet providers often have connectivity issues in these regions.
That said, the brokers that find a way to reduce latency in these regions will have a significant edge over their competitors. They will be the brokers that offer the best service in those countries, and that stand to make the most profit in these key emerging markets. And our proxy server solution can help them with this.
How does your solution help forex brokers overcome these challenges?
We have extensive experience in creating proxy server networks, and in boosting connectivity in all parts of the world. We know which internet service providers offer the best service, and we also know how to help ensure brokers benefit from the best connection routes. While it is possible for brokers to try to set up their own proxy servers in-house, letting us do it instead saves them a lot of time and money. Our solutions are fully-managed – we find the best proxy server locations, we find the best internet service providers, and we ensure that the entire proxy network is always running smoothly. All, at a fixed monthly cost, starting at 196 euro per proxy server. Working with us means that brokers get to enjoy better connectivity, and that traders get to enjoy better trading. And that matters.
What changes do you think we’ll see in the forex market in coming years?
Many forex brokers are diversifying their offering, and working towards becoming multi-asset trading companies. This means that they will be more dependent on their providers – particularly those offering trading, bridge, and liquidity solutions. Many forex brokers are also looking at extending their offering, and moving towards 24/7 trading. This applies mostly for the cryptocurrency market, but also for the forex market too. As weekend trading becomes more popular, brokers will have to support an additional 100 trading days per year. This will put more pressure on the brokers, and on their IT teams. It will be exciting to see which brokers will be the first to adapt to these new market trends.
What advice would you give to new forex brokers looking to enter the market?
Think “mobile first”, and think “24/7 trading”. You’re competing with the big guys, you need to be better and more agile. Being awesome at marketing does not necessarily help anymore. Be different and think ahead.
What advice would you give to established forex brokers looking to improve their service?
Think “client first” and think “win-win-win”. Enough with the churning. Create a winning scenario in which your providers support you, you support your traders, your traders stay. That’s the secret to long-term success in our industry.
What special offers does MT Proxy have for brokers looking to try its solutions?
We offer a free two-week trial to all brokers. We want them to have the opportunity to try our solution, and to see how much it benefits both them and their clients. So far, the free trials have been a huge success. Every company that has tried our service has also decided to stay on as a customer. We also like to give new brokers a little extra, and they are welcome to contact us about special offers. We’re happy to help them compete with the other larger brokers, in terms of trading execution and preventing latency arbitrage.
MT Proxy would like to extend its thanks to Paul and the team at Game Changers for inviting us to contribute to their highly-regarded industry publication. To read the full edition, visit the Game Changers website.