ADSS, a prominent forex and contracts for differences (CFDs) broker with a strong presence in the Middle East, is making a bold move by embracing cloud-based technology for its proprietary trading platform.
In partnership with technology provider Adaptive Financial Consulting, ADSS is transitioning away from legacy data centers, marking a significant shift in the capital markets industry.
The adoption of cloud-based infrastructure in the financial services sector is relatively new. It leverages cloud services from tech giants like Amazon, Google, and Microsoft, eliminating the need for maintaining physical data center infrastructure.
Matt Barrett, CEO and Co-Founder of Adaptive Financial Consulting, emphasized that cloud performance is more than sufficient for retail brokers offering mobile and web-based price streams.
It provides seamless connectivity to physical data centers, pricing, and connectivity infrastructure worldwide, all without latency issues or resource constraints.
One notable advantage of cloud-based infrastructure is its flexibility, making it easy for vendors and brokers to integrate their solutions.
Adaptive specializes in developing trading platforms for the industry, and the intellectual property of these platforms remains with the brokers, ensuring ADSS’ proprietary control over its new platform.
ADSS already offers MetaTrader 4 (MT4) for trading but has introduced its proprietary “ADSS Platform” to address the limitations of MT4.
Sophia Salim, the Chief Technology Officer at ADSS, highlighted the need for flexibility, scalability, and innovation in building custom experiences for customers.
The dated user experience of MT4 further motivated this shift. While the company has not decided if it will exclusively offer the proprietary platform or complement it with MT4, its priority is customer satisfaction.
ADSS joins a trend of brokers opting for proprietary platforms rather than relying on third-party solutions.
Some leading brokers, such as eToro, Trading 212, and Plus500, exclusively offer their own platforms. Developing a proprietary platform may be costlier upfront, but it offers substantial benefits in terms of value and scalability.
Barrett emphasized that cloud-based platforms offer superior technical quality, including resiliency, latency, performance, disaster recovery, and scalability, compared to legacy infrastructure, ultimately leading to cost savings.
Security remains a challenge, with some firms still concerned about cybersecurity in the cloud, though perceptions are evolving.
The collaboration between ADSS and Adaptive began in 2020, with Adaptive helping ADSS realize its ambitious goals for a market-leading and innovative trading platform.
Cloud technology is still relatively new in capital markets, but Barrett predicts it will replace legacy infrastructure in the next five to ten years, driven by a broader industry shift toward cloud adoption.
In a competitive trading industry, brokers embracing differentiated technology will have an edge, as Barrett suggests that reliance on platforms like MT4 or MT5 may limit their ambitions.
This shift toward cloud-based infrastructure reflects the industry’s commitment to providing enhanced user experiences and staying at the forefront of technological innovation.