FNG Exclusive Interview… One of the more interesting and experienced executives in the FX and CFDs trading arena, Andrew Saks, recently joined multi-market trading platform software provider TraderEvolution Global as Chief Product Officer.

We thought that this would be a good time to catch up with Andrew to learn more about what he (and TraderEvolution) are up to, what areas are “hot” now for their FX and CFD broker clients, how mobile trading apps – a TraderEvolution specialty – fits in, and lots more.

FNG: Hi Andrew, and thanks for joining us today. Please let us know a little more about what TraderEvolution does, and who its target clients are.

Andrew: Hi, and thank you for having me. I’m pleased to shed some light on TraderEvolution and its role in the electronic trading industry.

In the dynamic world of electronic trading, a pressing need has emerged – the demand for multi-asset capability and greater control over client bases.

TraderEvolution addresses this increasingly important need by offering a platform that empowers brokers and electronic trading companies to offer diverse asset classes and liquidity sources while retaining complete ownership of their own client base which is maintained in-house by the broker rather than controlled by a third party platform.

Our front end indirectly targets a variety of traders and investors with varying levels of experience and skill by allowing brokers to onboard traders who would be able to trade any asset class in any market.

This is why multi-asset brokers, FX and CFD brokers or proprietary trading companies can share our solutions and satisfy their clients with versatile functionality, which is essential within hedge funds, wealth management, advisors, professional full-time traders, all of which are sophisticated clients, as well as being able to cater toward the needs of those new to trading, advanced retail traders or active and passive investors.

A key defining feature of the TraderEvolution platform is that it is a multi-asset platform which supports Equities, Futures, Options, FX, CFDs, Crypto as well as Fixed Income asset classes, providing full access to this multi-product spectrum as well as the ability to connect to any liquidity pool and any execution venue.

FNG: What are the key tech challenges faced nowadays by brokers? And how does TraderEvolution help brokers deal with those challenges?

Andrew: In the rapidly evolving retail brokerage sector, the need for advanced technology solutions is paramount. Traditional connectivity solutions no longer suffice.

The rise of over a thousand new entrants has driven brokers to seek comprehensive platforms that provide access to a wide array of assets and superior execution.

In the past, brokerages operated with a limited set of assets, often confined to spot FX and a few other  OTC instruments. The focus was on client onboarding, and the trading desk-client dynamic was vastly different from today’s landscape. However, the industry has matured, and traders have become more experienced, demanding superior execution and access to a broader spectrum of OTC and exchange traded products.

The recent Investment Trends report stated that in the UK there were approx 275,000 total clients across all brokers operating in the UK two years ago whereas now its around 182,000 clients in total, however demand for equity trading has increased, as it has with other asset classes such as options, and this is a good example of why brokers should be able to adapt without facing a technology limitation.

The nature of electronic trading changes from time to time, as market trends come and go, and brokerages need to be adept at being able to accommodate such changes without having to reinvent themselves or experience huge costs and disruptions in changing their environment.

Brokers should be able to add new instruments and assets to their system very easily and plug into the appropriate liquidity pool to enable them to do so without restrictions. A current example of this is options trading. A large number of brokers are currently looking to add options trading to their portfolio, however in many cases their current technology does not support it.

Brokerages are no longer content with some of the limitations imposed by some of the traditional “full service” providers.

TraderEvolution’s platform, with its end-to-end solution and deployment flexibility, addresses these challenges by offering brokers unlimited control and scalability.

FNG: You’ve been involved in the Retail FX and CFDs business for a long time. What are the major changes you’ve seen lately in the industry, and what do those changes mean for both traders and brokers alike?

Andrew: Since 1991, my journey in electronic trading has witnessed a remarkable evolution. Early players like Interactive Brokers, IG Group, and CMC Markets paved the way for today’s landscape. Saxo Bank’s emergence marked a seismic shift, transitioning from interbank dealing to accessible financial markets for everyone.

Technology has progressed rapidly, from colossal mainframe systems to today’s powerful smartphones. Cloud computing has replaced hardware dominance. Traders now dictate market demand, driving brokers to enhance their in-house technologies for expanded functionality.

Cryptocurrency, once a niche, now drives broker competition, attracting a wave of traders. Lockdowns during the past decade boosted trading volumes as more turned to trading for income.

A number of newcomers to retail trading began their experience with cryptocurrency trading.

Having started with cryptocurrency, a different set of habits and methods have been formed by these new traders, something that traditional brokers have to consider, because a proportion of this type of trader may potentially expand to traditional asset classes but will have a different perspective to those who began their journey trading spot FX or CFDs.

The traders that have grown with the retail FX industry have honed their abilities and are now increasingly looking toward having access to the same asset classes and global markets as professional trading desks, so brokers need to be able to offer that exact environment yet maintain the keen pricing that retail traders demand.

At the same time, a number of traders from the younger generations have entered the market with the expectation of using simplified interfaces and workflows, therefore if brokerages would like to target both these groups, they would need technology which caters for such a universal audience.

FNG: So much of the world seems to have “gone mobile” the past few years, from how we do our banking and manage healthcare to ordering coffee and booking vacations. (I don’t even have a car key anymore, now its my phone!). Is that true of the online trading world? Where do you think that brokers can improve when it comes to mobile?

Andrew: Nowadays, retail customers of absolutely any product or service do not want fragmented services with a different component for each item. The vast majority of everything these days, from supermarket shopping to ordering train tickets online, is mobile-only and app-based. People now want to complete things as efficiently as possible.

Connectivity is also very important. Brokers don’t need mobile apps, their clients do. Traders want the connectivity and convenience offered by those apps.

As functionality increasingly shifts from desktop platforms to mobile apps, it seems that there is an overall progressive trend where people find fewer reasons to turn to their PCs or laptops. Just as you mention, I also have totally forgotten about using a car key, as my car is also accessible via a smartphone app, meaning that most people are now used to approaching most aspects of their daily lives via apps.

One of the significant challenges facing brokerage companies in the context of mobile interfaces is differentiation. Many of them are constrained by limited capabilities, prompting some to develop in house apps. However, these efforts often encounter hurdles when integrating with third-party back-end systems due to a lack of proper APIs, resulting in less-than-optimal user experiences.

A case in point is the recent acquisition of a 51% stake by Tickmill of the Amsterdam-based company called Change. Change is a mobile-first multi-asset brokerage platform. Not every firm has the resources to make such an investment for a less than 50% stake in a third party tech firm, and an increasing number now need to focus on being able to do this without outgrowing their existing tech.

Without a specialized technology partner that provides unlimited possibilities for accessing all asset classes and all trading functionality from a mobile device and which advances the cause of each broker and keep it in the race, such brokers risk extinction within a few years.

FNG: What else can we expect to hear from TraderEvolution in the coming months?

Andrew: In the coming months, expect TraderEvolution to unveil exciting developments that further enhance the trading environment.

We are currently working on enhancing our white-label solutions. Being able to offer a good quality and comprehensive white label solution is a key attribute for brokers to be able to expand their offerings while retaining control and ownership.

TraderEvolution remains dedicated to providing brokers with unlimited possibilities for market access.