Throughout 2015, we are inviting brokers from around the world to write to us with their MT4-related technology questions that we will put to Tom. These will focus on four key areas: liquidity bridges, risk management, integration, and hosting and server management – all areas which Gold-i specialises in. Tom’s responses will highlight the latest developments in the industry and give advice on how MT4 brokers can use technology to run their operations smoothly, effectively and profitably.
Integration: Why is the server level integration for MT4 much better than the Manager level?
TH: By integrating at server level, you become part of the MetaTrader server and this gives significant advantages including lower latency, higher performance and access to every MetaTrader function. Integrating at Manager level is certainly easier to develop with because it is a separate component. However, because it is completely separate and involves external communication into MetaTrader, this also causes limitations – for example, integrating at Manager level only gives access to a small subset of MetaTrader functions and always results in higher latency than at server level.
Liquidity: How can I distribute my liquidity to other brokers?
TH: There is a huge opportunity for brokers to increase business by the direct selling of liquidity and we are often asked about the best way for them to do this. Liquidity is traditionally distributed by FIX protocol messaging which is not part of MetaTrader ‘out of the box’. Through the use of advanced server APIs, Gold-i has developed our Matrix product to address this gap in the market. It enables a broker to become a multi-asset liquidity provider and also allows them to aggregate incoming liquidity feeds.
Risk Management: What tools are available to help the Head of Dealing to manage the brokerage exposure?
TH: We launched the Gold-i Visual Edge profitability enhancing tool at the end of 2014 to address this need for hybrid A/B-Book brokers. Dealing desks and risk managers need to know which clients are making profits and which clients are making losses as well as whether these profits or losses are specific to certain types of trades or groups and whether they are consistent trends over time. Once they are armed with this data, they can then plan appropriate strategies for different clients. Gold-i Visual Edge offers powerful visual analysis capabilities which also enable brokers to model ‘what if?’ scenarios – ideal intelligence for managing brokerage exposure in an informed way.
Hosting & Server Management: How much money can a broker save by outsourcing hosting and server management to a third party?
TH: There are a lot of high costs involved in self-hosting and self-management - not only IT and staff costs but also hidden costs – for example, issues can take much longer to resolve without an MT4 expert available 24x7. One of our London-based clients recently commented that by outsourcing its hosting and server management to Gold-i, they have saved in excess of £100,000 per year.