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important. It is a constantly evolving platform and the sophistication of MetaTrader users continues to surprise brokers. Te best Bridges help a broker adapt to client demands via more flexible liquidity models, more order types, advanced reporting and different instrument classes.”


Such are the demands on the MetaTrader platform that Ralich does not think every Bridge application provider will be able to keep up. “Brokers are still buying and using the MetaTrader platform but they are also looking to differentiate their flow by offering more bells and whistles to help differentiate their MT4 offering from the next broker.”


Andrew Ralich


“As the Retail FX market grows, the MT4 platforms need to be able to deal with a large number of clients all using the same platform, increasing in sophistication every day and all executing at the same time.”


deal with a large number of clients all using the same platform, increasing in sophistication every day and all executing at the same time. Brokers need more than just execution speed; they need reporting, advanced routing and failover capabilities that only a few providers can offer as a complete package.”


Depending on the broker, the Bridge can be used in one of two ways, says Ralich. “Some brokers want to connect to the interbank market through a single pipe and use this for those retail client that they do not want to put through MetaTrader. Other brokers may have installed a new risk management system but do not want to spend the time re-training everyone, so they connect every client in MetaTrader directly to their back-office. Tis puts considerable more strain on Bridges and with enterprise level brokers, is a model very few Bridge providers have succeeded in deploying.”


Technical challenges of Bridging


Te technical challenges involved in the Bridging of MT4 applications are the same old issues in many ways, says Ralich. “It is all about stability, performance and configurability. Te need to be 100% stable has always been at the forefront. Te need to offer flexible options for using MetaTrader is also increasingly


148 | october 2011 e-FOREX


Consequently the strain falls on the Liquidity Bridges to cater for advanced order types, different commission structures, multi-account facilities and flexible trading limits. “For the brokers it is all about differentiation because it is the high-end next- generation brokers that are going to take a bigger share of the Retail FX market in the future,” says Ralich. Similarly it will be the Liquidity Bridge providers that can demonstrate scalability, reliability and flexibility that will take a bigger share of their market. “Brokers become very entrenched with their technology providers so it is an important decision. Tey want to be able to grow and know that they have a technology structure that can go grow with them.”


Another factor that is starting to play a key role in selecting a Bridge provider is integrity, says Ralich. “Providing technology in financial markets often leads to a desire to take on risk and expand your business model beyond just offering solutions to brokers. Many of our newest clients are coming from technology solutions wherein the liquidity and Bridge got too intertwined, resulting in a conflict of interest and difficult situation for the broker. Clients need to have the flexibility to use a technology solution that is agnostic of their choice of how to manage risk, and who to use for liquidity.”


A final trend that Ralich has observed in the Retail FX brokers’ world is the demand for white label products and hosted services. “Many brokers are looking to offload not only the development of their technology, but also other aspects of their IT infrastructure. You will see more and more hosted and outsourced MT4 offerings coming into play for brokers who don’t wish to handle the burdens of hosting the platform themselves. We’ve worked closely with our clients to meet this demand with software as a service (SaaS)


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