The utilization of cloud-based technology in capital markets is uncommon. Only a few significant players selectively apply it and still need to replace their traditional infrastructure entirely.
Nevertheless, ADSS, a forex and contracts for differences broker well-known in the Middle East, has taken an enormous step. The broker is collaborating with technology provider Adaptive. The partnership aims to develop a proprietary trading platform utilizing cloud infrastructure rather than relying on conventional data centers.
The New Service Will Eradicate The Need For Physical Data Centers
Cloud-based infrastructure is a new development in the financial services sector. This type of infrastructure relies on cloud services offered by top technology companies like Microsoft, Google, and Amazon, eradicating the need to maintain physical data center substructures.
The co-founder and Chief Executive Officer of Adaptive Financial Consulting, Matt Barrett, stated that the cloud’s performance is more than enough for retail brokers with price streams available on web browsers or mobile. Users won’t see any latency differences irrespective of their location in the world.
Matt Barrett also said that price formation still occurs within physical data centers. However, the cloud provides the capability to connect to these data centers seamlessly, along with connectivity infrastructure and pricing. He further emphasized that using cloud-based infrastructure guarantees that there will be no issues regarding resource limitations.
Adaptive functions as a software development firm in the trading sector, not a white-label solution provider. The brokers own the intellectual property of the trading platforms developed by Adaptive entirely. It indicates that ADSS’s new platform is proprietary to it.
However, ADSS has provided trading services using MetaTrader 4 (MT4), a widely used third-party platform. Now, the broker has introduced its “ADSS Platform” platform alongside MT4.
The MT4 Platform Is Giving Way To The MT5 platform
Sophia Salim, ADSS’s Chief Technology Officer, explained that the broker created the exclusive platform to address the limitations of MT4. She mentioned that the team goal was to have more flexibility and scalability, granting the team freedom to innovate and craft personalized experiences for customers. Salim pointed out that achieving such flexibility is tougher when relying on ready-made trading platforms from third parties.
Moreover, MT4 needs an updated user experience, falling behind modern design standards. It’s worth noting that MetaQuotes Software, the firm responsible for MT4, has ceased releasing new licenses for the legacy MT4 trading platform. It’s promoting its more recent version, MetaTrader 5 (MT5). Both Barrett and Salim concurred on the outdated nature of MT4.
Salim emphasized the significant value of improving the user experience for their traders and the agility gained through innovation for their clients.
However, ADSS has yet to decide whether it will exclusively offer its proprietary platform in the upcoming years or if it will continue to provide it alongside MT4. She mentioned that the team would continue doing what is in the best interest of their customers.