We recently spoke with Albina Zhdanova, COO at Tools for Brokers, about the latest trends in the forex industry. Read on to hear her thoughts on the importance of offering low latency trading and what forex brokers can do to reduce latency for their clients.
What do you think will be the leading industry trends this year?
Alternative assets are on the rise today thanks to many factors. The layout of attractive instruments will change with crypto replacing some of the top-10 traded currencies. Trading is mainly a short-term investment, and crypto fits well with its high volatility. Another trend is that we see brokers focusing on professional, experienced traders and it’s essential for them to provide good liquidities with depth and fast execution to ensure best pricing for traders.
What opportunities do you see for brokers in 2021?
Any unstable situation represents a threat and an opportunity. New things come to the market, more people are interested in trading now, and better EAs and strategies are provided. If brokers put all these factors together and work out an action plan, they can make the most of the current situation and achieve significant growth in a relatively short amount of time.
What technology and trading infrastructure do you think brokers should be investing in?
Technologies like proxies ensure low latency and play a massive role in providing high speed and stability, so they are definitely worth investing in. Of course, having powerful servers, a trading platform, and a liquidity bridge should be a priority, as it is the base for everything else. Next, brokers can look at automation and other tools to improve performance and the efficiency of daily operations.
Why is low latency trading so important for brokers right now?
Traders’ demands are changing, and their requirements for execution speed are increasing. Brokers must cater to those demands to satisfy traders, manage their reputation, and grow through word of mouth. The happier the clients – the larger the volumes.
Why is low latency trading so important for traders right now?
Lower latency means increased trading speed which is of extreme importance for traders. It ensures their orders are executed with the pricing they need. Depending on the trader’s volumes and strategies, even a slight slippage can dramatically affect performance.
What can brokers do to reduce market-side latency?
Traders are located across the globe, a trading platform is based elsewhere, and a bridge is installed on top. Everything needs to have a fast internet connection, good location and a data center. We cannot influence the traders’ phones, laptops or providers. But proxies can decide where the request is sent to. With trading platforms optimised and a reliable bridge in place, it should take no time to send orders to the liquidity provider.
Which of your solutions would you most recommend for market-side latency?
The top recommendation would be the Trade Processor liquidity bridge. It is so versatile in its functionality and how it can help brokers optimise their processes. Its architecture also guarantees the fastest execution. For best results, we also recommend running technical checks on the platform to ensure it’s optimised and has enough capacity.
Why did you choose MT Proxy as your partner for client-side latency solutions?
We choose our partners carefully and run a full evaluation before making the final decision. We check the quality of the product, the service, the speed, and of course, the delivery. We have tested the product ourselves and saw a clear benefit for brokers. The communication between our teams has been excellent throughout the entire process, and we are confident that all inquiries will be taken care of promptly. So in the end, it was an easy decision for us.
Tools for Brokers Tools For Brokers is a technology provider for retail brokers operating on MT4/MT5. It offers an ecosystem of solutions centered around the flagship product — Trade Processor liquidity bridge, supported by data management and reporting, money management, and individual custom solutions.
About MT Proxy
MT Proxy provides custom-built proxy server networks. These networks enable brokers to boost connectivity, reduce excess latency, and offer a better, faster online trading experience to clients worldwide. They also enable brokers to better protect their businesses against DDoS attacks and latency arbitrage.