Can trading via the cloud work in the FX industry?


With technologists and analysts predicting a big shift toward cloud computing over the next few years, does this move have any impact on the FX industry? Cloud computing is a general term for the delivery of hosted services over the Internet and there are obvious benefits to businesses: from savings on buying expensive computer servers and programs to increased storage capacity, greater backup potential, and disaster recovery potential.

The worldwide cloud computing market grew 28% to 110 billion dollars in revenue in 2015 and is likely to continue to grow, as companies ease out gradually from the economic uncertainties and financial shackles. Cloud computing is also becoming a viable option for business continuity and disaster data recovery management.

There are lots of reasons companies might want to shift to cloud computing, with the most primary being lower capital costs, given that the technology can slash IT costs by over 35%. Before the cloud, software developers had to buy, configure and maintain their own servers.  However, the cloud allows companies to increase the scale and power of their IT and the speed at which they can be accessed and deployed.

The cloud benefits can also both brokers and traders alike with the ability to access data from anywhere and any format and with the right security in place can be sure to never lose the data, whatever happens to at ground level and in the office. With everything stored on cloud servers, data can be accessed, stored and managed just like it’s stored in the business premises but without tying up valuable resources and costs.

The reliability and efficiency of the cloud is ever improving and increasingly recognised as a big plus by analysts. As the load is distributed across many servers, companies don’t have to worry about hardware specifications or hard drive space.

As the cloud computing market continues to increase, it offers the FX industry an opportunity to drive further efficiencies and enhance the trading experience without brokers losing control.  It’s likely that more and more trading platform will make the shift, and it’s something that we are already seeing. Traders with automated trading systems will be able to host their trading platform on a broker’s cloud. Traders remain able to access they account and perform all functions just as if the platform was on their personal computer or clients. The cloud offers stability with almost no chance of downtime.

Despite the slow start, our own Marketcloud is starting the grab attention among the broking community as more and more see the benefits of a secure cloud-hosted trading platform set up a fully functional VertexFX platform on a pay-as-you-go scheme. It allows regulated brokers to easily lease the platform with its hosting service with the least management headache, and where a trader can easily find the regulated broker he trust to work with.

As it is available on lease there is no need to pay up front or to fund expensive setup fees. For traders, it also offers the reassurance that the brokers on MarketCloud are regulated and reputable as partners are carefully selected.