London based traditional stock brokerage veteran Templeton Securities, which has been around since 2006 has decided to expand its services into foreign exchange and CFDs trading. The subsidiary’s name is TempletonFX, co-founder and director of the FX brokerage, Mike Andrews shared with Finance Magnates.
TempletonFX is regulated by the United Kingdom’s Financial Conduct Authority (FCA) with Templeton Securities holding a matched principle license which allows it to execute trades on a straight-through processing (STP) basis. TempletonFX is not entitled to hold client funds under its FCA authorization, however it can give its clients trading advice.
existing clients of Templeton Markets can diversify via margin trading on the AlphaPro platform of TempletonFX
TempletonFX is a trading name of Templeton Securities, a company which is owned by CEO Trevor Coote, who led a management buyout of the Alexander David Securities Private Client Broking division back in 2006.
The company has started its business via a white label agreement with Alpha Capital Markets. The offering is fully STP which eliminates prospective conflicts of interest arising from the dealings between clients and the brokerage. The company is offering a full MT4 suite, which is branded as TempletonFX, as well as the AlphaPro trading platform which is a proprietary solution designated for more multi-asset oriented traders.
This makes the difference for TempletonFX, as it has parted with the traditional MT4-only model for startup brokerages. The multi-asset solution via the AlphaPro trading platform offers global equities and indices, commodities, fixed income and exchange traded funds (ETFs).
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Speaking to Finance Magnates, the director of TempletonFX shared: “We are targeting both retail and institutional clients with our offering.”
The company is also offering its own algorithm, called TempletonFX Algo, which is verifiable on myfxbook.com.
The algorithm is up just shy of 15 per cent year-to-date with a maximum drawdown of 12.42 per cent. With the main focus of the offering centering on traders who are not that committed to analyzing the markets, TempletonFX Algo opens the doors for clients who do not have sufficient experience or confidence, nor the time to trade the market themselves.
The performance of the algorithm has been adversely impacted mainly in the month of June, when the GBP black swan impacted a big number of algorithmic trading systems. Prudent risk management with minimal market exposure around such unexpected events is crucial for the long term performance of automated trading systems.
“We have very strict suitability tests for our TempletonFX Algo offering, just as mandated under FCA regulations. We don’t accept everyone as clients when it comes to this part of our product line,” Mr. Andrews explained.
Elaborating on the expansion of the offering of Templeton Securities, Mr. Andrews explained: “For us the move made sense, because we can bring our existing clients from Templeton Markets into our AlphaPro platform. They can thereafter use their stock portfolio as margin to trade leveraged products. This helps to diversify our investors’ portfolios and maximizes their trading experience.”