We are certainly far into a saturated market when it comes to the number of foreign exchange brokerages out there. In order to have a chance to succeed in this business, some new ideas are essential for new Forex brokers in order to differentiate them from the crowd. FXtradeweb has come to the attention of Forex Magnates because it does add some fresh offerings to the table.
The company’s Co-Founder and Group CEO, Rohit Mirpuri, has an investment banking background, having worked on the London trading floors of Bank of America Merrill Lynch, HSBC and Barclays Capital. He comes to the industry with experience in the design, development and support of multiple institutional trading platforms and low latency systems across multiple asset classes.
According to the company, their main goal is to bring institutional trading experience to retail clients, which becomes apparent from the first time a trader sees the spreads on the website of FXtradeweb. Mr. Mirpuri has been kind enough to share with Forex Magnates’ reporters more about the company’s offering in a brief interview.
What are the key differentiating points that FXtradeweb offers to its customers and others don’t?
Looking at the current state of industry, we have observed a great disparity in trading conditions, platforms offered, tools and market commentary available to the average retail FX trader. We focused a lot on the technology aspect of it – low latency execution, direct interbank pricing feed with tight spreads and some unique market commentary and in-house developed trading tools.
Tell us more about this unique market commentary for your clients.
This exclusive content is directly from the spot FX desks in leading investment banks, and provides an invaluable insight into the key drivers of the FX markets, based on insights into the largest market makers’ thought processes, book positioning, analysis and sentiment toward upcoming news events and data releases.
A handful of traders in a few banks have a huge information advantage that they can transform into profits. They know what the order flows are, and research shows order flow is one of the few worthy predictors of price in this market.
Does every client of yours gets this information?
We have decided to strictly limit this information to our higher deposit professional customers, however as a promotion we will be offering this content complimentary to all new live accounts for a limited period of time.
We have noticed the high leverage which you offer on the accounts with your company – up to 500:1. Where is your company based and regulated?
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We currently have two European companies in our group – we are headquartered in Finland and are a registered Securities and Commodities Contracts Brokerage by the National Board of Patents and Registration.
In Estonia, we are a registered Financial Services Provider for the Provision of Currency Exchange Services. (Registration code VVT000310 registered by The Ministry of Economic Activities Estonia).
Our plans are to attain the full FCA license in the UK, which is being processed shortly, and eventually move our headquarters to London.
Additionally, we will be opening offices in the Middle East and Asia, as we have an existing strong client base there.
Do you plan to stick to FX, or do you have plans to start offering other asset classes?
We definitely plan to add other asset classes. Having a strong background in derivatives has enticed me into looking into FX options as a new offering, being that they provide a diverse way to manage risk, hedge and trade non directional markets.
Speaking aside of Fixed Odds binaries, I believe that the retail trader could greatly benefit from FX options, including the various risk reducing strategies which can be employed. However, as it is a more sophisticated product, I do believe that client education here is the key, and offering this combined with a solid trading platform could see the same take up that has been established in the equity derivatives markets amongst retail traders.
Do you think that you might consider offering a different platform from the current industry standard MT4?
We are currently developing our own proprietary trading platform which has been in the design and development stages for many years, and will be a truly unique offering. Additionally, we are tying up with further liquidity and technology providers to ensure we stay at the forefront and remain the broker of choice.
Would you share with us which liquidity providers are used?
We use an aggregated feed from 20 different investment banks and during the London trading session our spread on EURUSD is often at zero.