The best way to ensure results is to have foundations that are effective and scalable.
This article was written by Jeff Wilkins, Managing Director of IS Risk, part of ISAM Capital Markets.
I am often asked ‘What is the holy grail of risk management?’ The reality is, there is no such thing. One model does not work for everyone and you need to be able to adapt according to changes in the market. However, having worked in risk management advisory for over 15 years – and with IS Risk overseeing $2 trillion of monthly notional trade volume - I certainly have a list of ‘do’s and don’ts’ relating to the most effective way for FX brokers to manage risk.
Top of the list for what not to do, is to not have an overcomplicated risk model. We see this far too often and it certainly does not generate the best results or enable a client to act quickly when market conditions suddenly change.
My other ‘pet hate’, which happens with alarming frequency in some parts of the world, is a CEO or business owner making their risk team focus on client drop. This always end up pulling the risk team down the wrong path, and they are therefore unable to deliver optimum results.
In my view, the best way to ensure consistent results is to have foundations that are simple, effective and scalable. Here are my top 5 tips for maximising profits and minimizing risk.
Jeff Wilkins, Managing Director of IS Risk
1) Deploy technology that can systematically alert you to what’s happening in the market and can help you to respond accordingly. With the right automated system in place, if your business doubles tomorrow you don’t have to suddenly employ a number of new employees. You will have the technology in place to enable you to scale and manage your risk effectively as the business grows.
2) Monetize flow on a consistent basis. The way to do this is by taking an informed approach to risk management and adapting your business models accordingly. We are able to help clients with this through our risk advisory service as, from our vantage point, we can spot trends, regionally and globally, which brokers (no matter how large they are) are unable to see.
3) Employ a good risk manager - which I know can be a challenge in the current climate but it makes all the difference. We often work with our clients to help them to select their in-house risk managers because from a risk advisory perspective, it makes a huge difference to have someone experienced within the brokerage who really understands your business. The ideal in-house risk manager is a quick thinker who doesn’t make snap decisions. I think of a good risk manager in terms of a Venn diagram – one circle is smart, one circle is experienced and one is trustworthy. Not many people genuinely fit right in the middle. If you have a good risk manager in your firm, lock them in!
4) Select your risk management technology partner very carefully – many companies offering risk solutions are pure technology providers. They don’t have a team of risk management experts in their businesses who have worked in risk teams within the industry. This limits the support and expertise they can provide to you.
5) Make sure the risk team has final sign off on any commercial offering. Far too often we see sales leading the charge with upside down commercial offerings that lock risk desks into managing flow with their arms tied behind their backs. A great example of this right now is certain brokers marking down from the spreads they receive from the LP. There seems to be an artificial race to zero and this leaves brokers with little options on how to handle risk. This commercial strategy will backfire soon.
With simple processes and procedures, a good understanding of your clients, a scalable model and the right people in place, you will not only be able to manage your risk effectively in today’s environment but you will also have set yourself up for future success.
IS Risk provides risk management, technology, hosting, and optimization. The US-based firm, part of ISAM Capital Markets, works with brokers all over the globe and is the only regulated risk advisor in the retail FX industry.
This article was written by Jeff Wilkins, Managing Director of IS Risk, part of ISAM Capital Markets.
I am often asked ‘What is the holy grail of risk management?’ The reality is, there is no such thing. One model does not work for everyone and you need to be able to adapt according to changes in the market. However, having worked in risk management advisory for over 15 years – and with IS Risk overseeing $2 trillion of monthly notional trade volume - I certainly have a list of ‘do’s and don’ts’ relating to the most effective way for FX brokers to manage risk.
Top of the list for what not to do, is to not have an overcomplicated risk model. We see this far too often and it certainly does not generate the best results or enable a client to act quickly when market conditions suddenly change.
My other ‘pet hate’, which happens with alarming frequency in some parts of the world, is a CEO or business owner making their risk team focus on client drop. This always end up pulling the risk team down the wrong path, and they are therefore unable to deliver optimum results.
In my view, the best way to ensure consistent results is to have foundations that are simple, effective and scalable. Here are my top 5 tips for maximising profits and minimizing risk.
Jeff Wilkins, Managing Director of IS Risk
1) Deploy technology that can systematically alert you to what’s happening in the market and can help you to respond accordingly. With the right automated system in place, if your business doubles tomorrow you don’t have to suddenly employ a number of new employees. You will have the technology in place to enable you to scale and manage your risk effectively as the business grows.
2) Monetize flow on a consistent basis. The way to do this is by taking an informed approach to risk management and adapting your business models accordingly. We are able to help clients with this through our risk advisory service as, from our vantage point, we can spot trends, regionally and globally, which brokers (no matter how large they are) are unable to see.
3) Employ a good risk manager - which I know can be a challenge in the current climate but it makes all the difference. We often work with our clients to help them to select their in-house risk managers because from a risk advisory perspective, it makes a huge difference to have someone experienced within the brokerage who really understands your business. The ideal in-house risk manager is a quick thinker who doesn’t make snap decisions. I think of a good risk manager in terms of a Venn diagram – one circle is smart, one circle is experienced and one is trustworthy. Not many people genuinely fit right in the middle. If you have a good risk manager in your firm, lock them in!
4) Select your risk management technology partner very carefully – many companies offering risk solutions are pure technology providers. They don’t have a team of risk management experts in their businesses who have worked in risk teams within the industry. This limits the support and expertise they can provide to you.
5) Make sure the risk team has final sign off on any commercial offering. Far too often we see sales leading the charge with upside down commercial offerings that lock risk desks into managing flow with their arms tied behind their backs. A great example of this right now is certain brokers marking down from the spreads they receive from the LP. There seems to be an artificial race to zero and this leaves brokers with little options on how to handle risk. This commercial strategy will backfire soon.
With simple processes and procedures, a good understanding of your clients, a scalable model and the right people in place, you will not only be able to manage your risk effectively in today’s environment but you will also have set yourself up for future success.
IS Risk provides risk management, technology, hosting, and optimization. The US-based firm, part of ISAM Capital Markets, works with brokers all over the globe and is the only regulated risk advisor in the retail FX industry.
SMX's 1900% Surge Since November Is Not a Momentum Trade; It's Based on Transformative and Deliverable Techology
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
