For our latest industry interview, we spoke with Jay Zhan, the CTO and Co-Founder of Fortex. He shared his thoughts on the opportunities he sees for brokers this year, and the technology that could help achieve more business growth in 2022.
What do you think will be the main industry trends in 2022?
Customers will demand to trade things that move with the best user experience possible, i.e. asset types with movement, best price, best execution experience, and best automated service.
What opportunities do you see for brokers?
Whoever can adapt to the new landscape and pivot will lock in a loyal base of customers for years to come. This also provides a diversified source of revenue for the broker to withstand shocks from slowdown from a single industry to sustain long term growth.
What technology do you think brokers should be investing in?
Technology platforms that support true multi-asset trading, fractional shares, about to accept deposit in fiat and crypto and use any kind of fiat or crypto as margin and/or collateral as a single account to facilitate the account to trade all kind of financial assets.
Why is low latency trading so important for brokers right now?
Given more financial products are added to and the continued increased data rate for the existing product, it is imperative that the broker can consume large amount of quote update simultaneously with minimum latency. This ensures a broker can provide their clients accurate updated market information and to trade on the correct price in order to out manoeuvre the competition.
Why is low latency trading so important for traders right now?
Trading is a business where decision is made in a split second if there is a profitable market opportunity. Given the large amount of data rate, low latency guarantees the decision is made upon the most recent info, not data points that is already seconds behind. Trading made with latency data will be picked off by traders armed with the latest info.
What can brokers do to reduce market-side latency?
Connectivity and software solution that are purposely built for low latency and high frequency trading.
Which of your solutions would you most recommend for brokers?
A median size broker should subscribe to our xForce suite that offers multi asset trading in a single account with battle tested low latency and high frequency capability. For firms that want to build out, they should license our ECN Platform. For the real ambitious ones, we offer bespoke services where we have a track record of helping companies to become a successful dominant player in their space.
Fortex revolutionized trading beginning in 1997, as the first independent, multi-asset trading platform to provide clients with direct, fair access to markets. Since then, the company has grown organically to become the leading FX trading platform with $12 billion in currency trades and 500,000 tickets a day for tens of thousands of traders around the world.
Headquartered in Silicon Valley, Fortex taps the Valley’s culture of innovation, leading engineering talent, and technology advances to continue delivering industry firsts. With deep roots on Wall Street, Fortex intimately understands the needs of currency traders, broker-dealers, and markets. And with a network footprint in Asia, Fortex helps fuel global trading.
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.