Tradable: Does It Make Sense for Your Brokerage?

Launching at the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates' London Summit in 2012 and winning the Elevator Pitch Presentation, Tradable quickly made its mark within the online Forex industry showcasing its ‘apps’ based platform. The company then made a bigger splash when it sponsored the 2013 event, showing off its video, “Tradable – One Year Later."

https://youtu.be/vya69PzjTwo

Backing up the flair, Tradable has also proved to have some substance having been able to achieve partnerships with notable brokers such as Monex Group of Japan and GAIN Capital for distribution of the platform to their customers. But at the same time, some early brokers who backed the platform haven’t seen much traction since offering the system. Developers have also related to Forex Magnates that it still has a long way to go before becoming a monetary source for their apps, but the overall integration experience has been mentioned as being smooth.

So what’s the real deal about Tradable, and is it a platform that brokers should care about? Aiming to answer this question, Forex Magnates analyzed Tradable in our recent Quarterly Industry Report in a research article titled “Tradable – Platform of the Future, or Just a Niche?” The analysis is part of the overall report that is available for sale to readers.

Some of the key findings:

“The underlying difference between Tradable, and virtually every other Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term is that it was created from the top down to focus on developers.”

What this means is that unlike other trading platforms, Tradable resembles an operating system such as Windows or iOS where developers create applications for the platform. Speaking about this, Tradable CEO, Jannick Malling, explained, “The goal was to allow developers to only need to create one app for one API, instead of multiple APIs for each broker their app connects to." For users this means an entire array of 3rd party apps that work smoothly on the platform, without them being broker specific. However, a side effect of this process is that for brokers, there may be compliance related issues as to whether they can promote individual apps to users.

“Among brokers contacted by Forex Magnates about this article, flexibility of offerings was viewed as one of the greatest strengths of Tradable. As such, they liked that the platform provided apps that would make it appeal to both beginners and advanced, semi-professional traders.”

On the other hand, unlike MT4, Tradable is far from being a turnkey platform solution. As a result, to fully take advantage of the flexibility, it requires firms to put in the time to learn how they can use the integrated apps as an advantage to both convert new customers and increase volumes among traders.

“If developers aren’t creating apps for the platform, there is little added value that it provides.”

Part of the ‘chicken and egg’ model, Tradable’s future is tied into developers creating apps to allow the platform to appeal to traders. On the other hand, developers will only spend resources creating apps on the platform if they see monetization potential (similar to why fewer developers bother to create mobile apps for Windows phones)

Our bottom line of the report is that Tradable isn’t for every broker but provides long-term upside for certain types of firms. The analysis provides a breakdown of which types of brokers would do well with Tradable and the advantages it provides, as well as who should steer clear. For the entire article and current Tradable user stats, grab a copy of the Q2 2014 Forex Magnates Quarterly Industry Report.