For our latest industry interview, we spoke with Debbie Georgiou, Business Development Manager at EXC. She shared her thoughts on the opportunities she sees for forex brokers this year, and the technology that could help them to achieve more business growth in 2022.
Low Latency Trading With Exclusive Capital
Tell us about Exclusive Capital. What services can you offer brokers?
Exclusive Capital is an EU Regulated Investment House offering various Institutional Solutions, helping clients navigate the complex process of establishing, preserving, and growing wealth. With Exclusive, brokers will maximize their product offerings and diversify revenue streams with secure and reliable pricing from our True Multi-Asset Liquidity Solutions. Start-ups can benefit from our fully customized all-in-one brokerage solution offering advanced setup, dedicated success and support managers to help clients create their own scalable online business. Professional, Well-Informed investors can benefit from our EXCA Prime Fund: Registered Alternative Investment Fund offering investors long-term capital growth opportunities. The Investment Fund is created under a structure that enables the creation of multiple Sub-Funds, which other Investment Firms can benefit from.
What do you think will be the main industry trends this year?
It has been a turbulent year for the industry following the disruptions of the COVID-19 outbreak and other geopolitical events. However, with a downside, there is always an upside. Blockchain, Digital Assets, NFTs, and the Meta-verse prove that nothing is impossible in this industry. High-Tech, Digitalization and Automation of organizations will be a crucial industry trend; with firms investing in their employees and company departments to develop in house solutions and, therefore, transform from the traditional Investment model. In addition, there is growing momentum for digital assets and, in general, a shift from conventional most-traded assets – the industry should tap into the emergence of digital assets and diversify its offerings.
What opportunities do you see for brokers in 2022?
I believe the next few years will be vital in determining whether organizations can adapt and thrive in this changing environment if brokers transform from the traditional model of operations to a fast-changing and technology-driven landscape. The opportunities are unlimited; to develop automated client onboarding, new customer/partner ecosystems, new products/services, new use cases and diversified asset offerings. Lastly establishing an ecosystem of strategic partnerships to amplify digitally driven innovation.
What technology do you think brokers should be investing in?
Staying on top of tech trends is a smart move. Brokers should invest in automation and digitalization at all levels. An example is incorporating cloud-based technologies to improve operational efficiency and generate business value. Additionally, brokers should invest in AI-based technologies to improve client-facing and operational processes. It is also crucial for brokers to explore blockchain’s possibilities as it seems the future revolves around it.
Why is low latency trading so important for brokers right now?
Due to growing competition, brokers value low latency right now. As it increases the quality and speed of trading technology with better reaction to market events than competitors, ensuring significant gains/increased profitability of trades as a result. Brokers targeting experienced and informed traders should be focusing on their trading conditions exclusively in terms of Liquidity quality, execution, and pricing to sustain and increase their client base. Another reason Low latency is essential to brokers is high-frequency traders with strategies for latency arbitrage can overwhelm server networks and cause issues to a broker. In addition, low latency can reduce the chances of traders taking advantage of data inefficiencies.
Why is low latency trading so important for traders right now?
Low latency is crucial for traders to achieve long-term profitability as the whole trading process starts from the speed of accessing information and ends with the execution of orders at the desired price. However, there is a chance that latency may trigger some problems in the process during each ‘’trade stage’’ such as ‘’Data Lag’’ or slippage. Therefore, low latency connectivity is critical to ensure that the time taken to complete the entire process is kept to a minimum, along with slippage.
What can brokers do to reduce market-side latency?
First, brokers must ensure a secure and operational high-quality trading infrastructure to reduce risks against internal server failures and external attacks. Additionally, they can add proxy servers to their network in key locations (Targeted markets).
Which of your solutions would you most recommend for brokers?
I recommend our Multi-Asset Liquidity Solution, which offers access to major Tier-1 FX liquidity venues with more than +30,000 symbols. We provide access to the deepest liquidity pools, leading-edge technological infrastructure, and connectivity choices that accommodate clients’ needs and goals. Our Liquidity solutions ensure favorable pricing with competitive turnover fees, quality execution at under 10 milliseconds, full post-trade transparency (Mifid Compliant), a deep Order Book with advanced aggregation and ultra-low spreads.
About Exclusive Capital
Exclusive Capital leverages the latest technology to offer world-class asset management, Full Brokerage Solutions and multi-asset liquidity services.
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. For more information, sign up for the free trial.