FNG Exclusive Interview… Trading technology firm Gold-i is experiencing significant demand from prop trading firms for its advanced liquidity management platform, MatrixNET. FNG spoke to Tom Higgins, CEO of Gold-i about the advancements in the prop trading industry, and why Gold-i’s offering is ideally suited to prop firms seeking access to crypto liquidity.

FNG: Hi Tom, and thanks for joining us today. What developments are you seeing in the prop trading industry?

Tom: Prop trading is undoubtedly the fastest growing area in retail trading. There was a time, not that long ago, when there was a lot of negativity around prop firms, but the market has now become more professional. Many unscrupulous firms have closed and the more reputable ones are thriving.

The launch of The Prop Association (TPA) – an independent self-regulatory body created to promote transparency, accountability and fairness in the prop trading industry – is a positive step forward. TPA members have to meet certain criteria, so being a member adds credibility to prop firms, signalling a strong commitment to adhering to high standards.

A further progression is the launch of dedicated industry events, with London’s first Prop Trading Expo taking place on 27th September (which Gold-i is exhibiting at).

As the prop trading industry has matured, traders using their services have evolved too. They are getting smarter at knowing which firms to trust and what to look out for to avoid the less reputable firms. Whilst many prop firms started in FX, most have added crypto to their offering in response to client demand. Crypto-only prop trading firms are becoming increasingly prominent too. This isn’t surprising given that crypto markets operate 24/7 and prop firms’ clients like assets they can trade at weekends.

FNG: What is it about Gold-i’s MatrixNET that most appeals to prop firms?

Tom: MatrixNET, our advanced liquidity management platform is integrated with over 80 Liquidity Providers and 35 crypto exchanges. It enables prop firms to simulate real market trading conditions and access institutional-grade crypto and FX liquidity in the same platform. Prop firms want the trading environment for the challenges to look as real as possible – and we are particularly good at simulated live trading.

As the traders aren’t trading real money at this stage, huge volumes are traded every day – and our technology has been developed to process millions of orders a day. We can process orders 24/7, with no downtime required.

When traders progress to live trading, we are set up to accommodate this, too. MatrixNET is integrated with all the major prop trading front-end platforms such as TradeLocker and Devexperts. We can also introduce prop trading firms to our CRM partners, ensuring they have all the components they need for their trading operations.

FNG: How have you adapted your commercial model to suit prop trading firms?

Tom: Our commercial model is one of our major differentiators as we reflect the model used by prop firms. During the evaluation stage, we charge a per-user fee for traders, with no transaction fees – mirroring how many prop firms operate. Once traders successfully progress beyond the challenge phase and enter the funded stage, the model shifts: we charge transaction fees instead of a user fee. By doing this, we match the commercial needs of prop trading firms.

FNG: You are one of the speakers at the Prop Trading Show in September, what are you going to be talking about?

Tom: The Prop Trading Show is for a B2C and B2B audience. I’m hoping to convey the importance to traders of choosing a prop firm with robust technology behind it. When selecting a firm to trade with, they should ask questions such as: “Will you connect me to a real LP?”, “Do you have full 24×7 support so I can talk to someone if needed?, “What are your rates of conversion from evaluation to funded accounts?”  “What asset classes are you offering?”  “What’s your withdrawal process?”  “How do I know that you’re legitimate?”

For the B2B audience, I want to get across that we have excellent technology and experience in this space – and we’re helping to professionalise the industry. We can provide an outstanding simulated live trading environment, access to competitively priced crypto and FX liquidity, and a wide range of advanced liquidity management features.