Please tell us a little about the VIBHS Financial background and its organisational structure?
AI: VIBHS began by market making gold on the Dubai Stock Exchange. In 2013 the owner sought to establish licensed entities in Mauritius and then London. In London we got our FCA license in 2014. Since then we have grown the company in London and brought the two entities under one umbrella; partly to give all clients a similar experience, and partly in anticipation of changes in global regulation.
What are your own job responsibilities?
AI: I ensure that we have the resources and staff to make sure we can operate smoothly on a day to day basis. Roles include management as well as implementing long term strategy. Having a group structure means that we need to aim to present the same firm values and client experience regardless of where they chose to open their account.
What types of financial instruments can clients trade with you?
LH: Clients are able to trade over 50 currencies, over 10 international indices, a range of key commodities and over 10 CryptoCurrencies all from one overall account. In addition clients can trade 1200 UK Equities from the Dabbl App giving the client a genuine multi asset trading base. A number of platforms are provided, including MetaTrader 4, Swan and TorchMarkets.
What sort of traders are you providing services for and where are they located?
LH: We cater specifically to traders looking for a fully regulated, well capitalized firm in The City of London with a genuine STP low latency model, conveniently co-located in the LD4-LD5-LD6 ring. We offer a choice of bespoke liquidity to cater to the needs of a variety of traders in the MT4 FX and CFD space looking for consistent execution in these venues.
Our clients represent a mix of retail, professional and corporate. Over the years we have had our systems engineered to ensure consistent execution, be the client behind the Chinese firewall, in Asia, or Europe.
Clients can trade for themselves, use MT4’s EA scripts or easily build their own systems from one of our alternative platforms. We can also provide education and some clients use the service of money managers.
Please tell us more about your trading platforms.
LH: MetaQuotes have been around long enough for MT4 to be the industry standard. It is difficult to work with introducers if MT4 is not offered. In addition we can now offer the Swan platform from Star Financial. This allows us to appeal to a broader spectrum of traders and we can offer more CFDs than with MT4. We also feel that Swan appeals to more experienced traders and allows us to offer more products within a spread-betting wrapper. On top of Swan we also have an algo platform called Torch Markets. This platform allows traders to build, test and run their own algos. Importantly, the traders do not need to be able to program. The algo can be built and tested by following a GUI. With more and more traders solely using their phones this is an important App.We feel that traders building their own systems may ultimately be more successful.
How would you describe the company’s philosophy and approach to doing business?
AI: We pride ourselves on providing a high level of bespoke service perhaps some of the larger firms cannot provide. We also do what we say we are going to do. For example, when we say STP we do not mean a hybrid of A and B book because our license is strictly STP (Straight Through Processing). We are always willing to spend time with clients in an effort to get the LP’s and execution that suits their requirement.
Getting new business is costly, so once we have a new client onboard we hope that we can keep them. Positive recommendation and word of mouth can be vital in bringing new traders.
Why are increasing numbers of traders choosing to use you and what do they like about the services you provide?
AI: I think we have a little more to offer than most brokers. Our team have been around long enough to be able to tailor our services to the client’s needs.
Many readers of e-Forex like to develop their own trading strategies. What solutions do you provide to help traders build and backtest their strategies?
LH: I think Torch Markets is ideal for this. Using the App a client can create an algo and then backtest using it using tick data. If the backtest looks positive they can then run the algo in demo mode before deciding whether to go live.
Past performance is needless to say not necessarily indicative of future trading results.
The take up of MT5 vs MT4 was initially slow but appears to be speeding up now. Do you see increasing interest in this platform?
LH: We see the new MT5 platform as one that is being increasingly adopted by an ever larger number of traders with most traders still loyal to MT4. This is largely due to the fact that their scripts were developed for this platform and the old adage “if it ain’t broke, don’t fix it” seems to apply. However, like many brokers we see ourselves offering MT5 as well in the future.
How important is technology to your offering and how do ensure that your systems both secure and resilient?
AI: Technology is vital in FX trading. There is very little voice broking in our world now. Our team operates on a multi redundancy basis. We have multiple MT4 servers and also servers in multiple locations and with different connections to liquidity. To this end we try not to become too dependent on one bank, one jurisdiction, one tech or liquidity provider or even one data centre. In such case as one were to fail, we can switch clients to another.
How does BREXIT affect your business model?
AI: Like all UK firms, BREXIT has its challenges. However it remains to be seen what actually happens here. We are therefore developing appropriate contingency plans. However our heart and centre is based in The City of London and this will remain the case.
What resources do you offer to help traders get more experience and to support their learning curves?
LH: We believe education is an important part of becoming a successful trader or investor. Please do check our website as there are a number of new initiatives coming up.
Do you cater to affiliates and introducers?
LH: Much of our business comes from recommendation and introduction. We offer a wide range of payments and possibilities, very much dependant on jurisdiction and account type. Being focused on this we do it well. If you are interested please do give us call. We speak a variety of European languages as well as Mandarin here in our London offices.
What are your expectations about how the retail FX trading market is likely to evolve over the next few years? Do you expect to see more consolidation amongst providers?
AI: FX trading is continuously evolving. 20 years ago the retail sector was just getting going as it were. In this time spreads have narrowed and the gap in performance and possibilities between retail and institutional has narrowed considerably.
A continued trend is customer awareness and the ability of competitive technology to bring ever better levels of service to the end client. The client of 10 years ago is very different from the client of today, often because the tools offered in terms of automated trading and the product give the client a much higher chance of becoming profitable.
Over leveraging of client positions was a major issue. The pendulum may have swung too far the other way now but currency trading has and continues to mature. These trends are set to continue as forex becomes a more of a mainstream asset class.
What the keys to success in this business?
AI: Reputation, we have built that, client by client. Say what you are going to do for them, and then stick to it. Realistic management of risk is a key marker in this game. And realizing that the market today is not the market of yesterday or tomorrow. Adapting to these factors are key to both survival and success.
What’s the easiest way for traders interested in learning more to contact your team?
AI: Call, email or message us. We will be glad to facilitate and help. www.vibhsfinancial.co.uk
VIBHS Financial Limited is authorised and regulated in the UK by the Financial Conduct Authority under Firm Reference Number 613381. Incorporated as a Limited Company in England and Wales under Companies House number 08279988. Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60.66 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.