VIEWPOINT
Top questions to ask when evaluating an MT4/Bridge solution
By Andrew ralich, CEO at oneZero Financial Systems
How will I deploy and manage a MetaTrader4 off ering? Despite the ever growing popularity of internal proprietary systems and “diff erentiating” platform off erings… there will still always be a demand for the ubiquity, fl exibility and familiarity that comes with MT4.
A
When choosing how to off er MT4, there are a number of technology providers who have dedicated their business to simplifying this process for brokers. From full end-to-end MT4 off erings that include hosting, bridging and liquidity to more advanced systems designed to couple MT4 to a legacy risk management model, the various “fl avors” all come with caveats of short- term benefi ts vs. long term growth plans.
In an eff ort to simplify this process, the best thing a broker can do is focus on the following questions:
1. What liquidity do I want to be connected into my MT4 Platform?
For brokers with existing ECN/LP relationships, this decision comes down to how to connect their preferred liquidity into MT4. Choosing a 3rd party Bridge provider will allow the broker the fl exibility to switch liquidity venues, or introduce failover / alternative liquidity options down the road, versus committing to a Bridge solution that is tied to a specifi c source of liquidity. For brokers looking for new liquidity relationships, a Bridge provider is often a great resource for understanding what each ECN, prime broker or bank relationship has to off er.
s Retail FX continues to sweep across the globe, there is one question that faces every broker who decides to market to retail traders:
2. As my MT4 Platform expands, do I intend to rely on 3rd parties to manage my infrastructure or do I want to, at some point, take on that responsibility internally?
As the internal footprint of an MT4 deployment increases, the demand for in-house MT4 expertise also grows. Relying on a 3rd party provider is often essential in ensuring that a broker can maintain a consistent, relevant MT4 knowledge base to address any challenges that arise. Choosing the right 3rd party partner means making sure they are willing to grow with you, in parallel with your business needs, balanced against their desire to attract retail clients themselves, and that they remain LP agnostic.
3. How will I address increased regulatory demands and client reporting needs?
Not every broker, from the onset, deploys a fully functional back- offi ce system to manage their cross-platform client
off erings. When deploying MT4, many of the initial needs for both client and regulatory reporting will exist right in the platform itself. Long term,
as brokers look to consolidate back-offi ce reporting and address additional needs from their regulators and clients across multiple platforms, it’s important to ensure their tech providers have either an in-house reporting solution or are fl exible enough to provide post trade reporting, back-offi ce and other integrations that will allow the MT4 platform to scale.
In the end, the risk vs. reward that every broker must face is that, inevitably, they will need an MT4 option for their clients. Whether or not they choose to bite the bullet up front and take on a provider who will scale with them, or risk a switch in technology and infrastructure down the road, all depends on their appetite for balancing time-to-market and long term strategy.
july 2012 e-FOREX | 133
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