What has happened over the past year?
Over the past year, our focus has been building on the existing foundations of our business. This included a fresh, objective look at our internal structure and operations, strengthening and enhancing our teams’ skillset and knowledge, investing in technology and finding new niches and opportunities to service our clients effectively.
You mentioned new niches, can you give a few examples?
Take retail aggregators, for example. This is a crowded field and the competition largely focuses on pricing. FXCM’s unique experience means we can provide a truly tailored and differentiated service. We sit with clients to understand their pain individual points and work to address them. FXCM’s global office network and around-the-clock coverage means clients always feel supported. So, whether it relates to credit access, net-open positions, regulatory reporting or API support, we always have a team able to help them. Outside of retail aggregators, we have grown our business by on-boarding family offices, small and mid-sized hedge funds and proprietary trading firms. The needs of these clients are very different, often more complicated and non-cyclical. Our prime-of-prime and market data divisions are also gaining traction. Overall, it is an exciting time for our Pro business. There will be a lot more to come from us over the next few months. Watch this space!
Can you give us an insight into what to expect from FXCM Pro over the next few months?
We have some exciting projects underway, which will include various partnerships that will strengthen both our technology and product offering. We have just signed up with FlexTrade and we’re currently integrating their solutions into our trading ecosystem. When it is rolled out, it will give us a significant edge when it comes to areas such as liquidity customisation, connectivity between market makers and takers, reporting and transaction cost analysis. This partnership will increase operational efficiency and allow us to service a broader range of institutional FX clients.
How important is market data to your business, and how are you leveraging this?
Market data is a fast-growing component of our business and we have worked both internally and with third-party institutions to optimise our data effectively and develop a suite of unique products. There is a scarcity of alternative financial data currently available. FXCM offers aggregated retail trading data from its global pool of customers to provide powerful market insights and transparency for retail trading behaviour. Simply put, the same data cannot be sourced anywhere else, and our data customers are able to identify unique trading opportunities as a result.
Can you give an example of how technology has allowed FXCM Prime to provide added-value to customers?
Our prime-of-prime customers often want to trade across several platforms in order to source the best pricing and execution. Monitoring net-open positions in real-time is therefore crucial from a credit, risk management and compliance perspective. FXCM Prime is underpinned by unique low-latency technology that conducts pre-trade credit checks on every trade. As each user can connect to multiple platforms via a single account, the total number of open positions is closely monitored; any orders that exceed a user’s agreed credit line is automatically rejected. FXCM Prime can therefore limit users’ total exposure, regardless of the number of platforms they trade on. Our technology also provides smart order-routing, transaction cost analysis capabilities and a range of back-office processes, leaving our clients free to focus solely on trading and execution.
FXCM Pro offering and services are intended for institutional and professional clients. Trading on margin carries risk.